There is a good chance you have heard about the term National Pension System (NPS). With its attractive market-associated returns and tax advantages, NPS has strongly fixed its position as a backbone of retirement planning followed by citizens of India.
Following the sources, in 2023, reached a notable 17 million subscribers, which represents rising popularity among individuals planning to secure their financial features.
But enclosed by this large group of contributors, how does the NPS easily manage and recognise each participant? The answer is a Permanent Retirement Account Number or PRAN.
PRAN number is a special identifier for every subscriber and clears the way for hassle-free management of their accounts.
In this article, we will tell you the importance of PRAN in detail.
What is a PRAN Number in NPS?
PRAN number is a 12-digit alphanumeric code designated to every NPS subscriber or enrollment. It makes certain the effortless identification and administration of their pension accounts and is essential for evaluating and managing NPS contributions. As a subscriber, you can also make use of it to keep an eye on investment performance and secure your financial protection in retirement.
Consider PRAN as your special digital identifier within the NPS structure, similar to your Aadhar card. It serves as an online interaction record, allowing the effortless monitoring and management of your retirement savings journey. With PRAN, you can use many online services and resources offered by the NPS authority.
Things you should consider:
- Your PRAN number remains constant across both Tier 1 and Tier 2 accounts within the NPS. These accounts serve different objectives, each serving a different facet of your financial planning journey.
- The Tier 1 account signifies the core of the NPS, providing a default option with a fixed lock-in period of up to 60 years. The contributions here are allowed for tax deduction according to relevant rules. While the lock-in period makes certain disciplined money savings for your retirement years, it also represents the faithfulness to establishing a strong financial cushion for the future.
- The Tier 2 account is a voluntary savings option. Unlike the Tier 1 account, you don’t get tax benefits for contributions to Tier 2. However, it offers great flexibility because you can withdraw money whenever you want, with no restrictions or penalties.
How to Get a PRAN Number:
- Check Eligibility: Make sure you’re an Indian citizen between 18 and 65 years old.
- Find a POP: Locate a Point of Presence (POP) like a bank or financial institution that helps with NPS registration.
- Get the Form: Visit the POP and ask for an NPS registration form. Fill it out with your personal details and nominee information.
- Submit KYC Documents: Provide necessary documents like ID proof, address proof, and a recent photo. Ensure they are valid.
- Choose a Fund: Pick a Pension Fund Manager (PFM) and select your investment option—Active Choice or Auto Choice.
- Make Initial Contribution: Pay the required minimum amount to start your NPS account. The POP will handle this for you.
- Receive PRAN Number: After registration, you will get a PRAN acknowledgment with your unique 12-digit PRAN number.
- Use Your PRAN: Use this number to check your account statements, contribution history, and investment performance.
How to Apply for a PRAN Number Online
Documents Required to Apply for a PRAN Number
How to Check PRAN Card Status?
Generally, PRAN cards are generated and sent within 20 days of the CRA – Facilitation Centre obtaining the completed registration form.
If you haven’t obtained your PRAN card within the anticipated period, you can go to the associate nodal office for help in tracking the status of your PRAN card or you can check the status of your PRAN card online by going to the CRA website:http://www.npscra.nsdl.co.in.
When you reach the website, find and click the ‘Track the status of the PRAN Card’ option. This will take you to the applicable page where you can enter your details to track the status of your PRAN card.
How to Reactivate PRAN Number?
Keeping your PRAN number in active condition is essential for maintaining your NPS account. If you fail to deposit the minimum contribution of Rs 1,000 can make your account being freezed or blocked.
Deposit the minimum amount of Rs 1,000 to reactivate your NPS account. You can do this by going to the eNPS portal or by going to your nearest bank or Point of Presence (PoP).
If you want to deposit the contribution online, follow these easy steps:
Final Words
A PRAN number is crucial for managing your NPS account efficiently. Ensure timely contributions to keep your account active and use online tools for easy management and tracking.
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Disclaimer – This article is for educational purposes only and by no means intends to substitute expert guidance. Mutual fund investments are subject to market risks. Please read all scheme-related documents carefully before investing.
