Through the National Pension System (NPS), people can put up yearly installments on a productive road that would yield market-connected returns. Such returns would gather into a significant corpus that people can use to secure their post-retirement life. For subscribing to NPS, people need to have a Permanent Retirement Account against which they have been allotted a Permanent Retirement Account Number Card or PRAN Card.
What is a Permanent Retirement Account Number (PRAN)?
The Permanent Retirement Account Number (PRAN) is a one-of-a-kind 12-digit number that is allocated to every NPS subscriber. A solitary individual can have one PRAN at a time.
Under a Permanent Retirement Account, a contributor can hold two sorts of accounts - Tier I and Tier II. The former account is mandatory under NPS, whereas the latter account type is a voluntary savings account.
Tier – I Account
A subscriber needs to make their annual contributions for retirement corpus in this account.
Therefore, a subscriber cannot withdraw the aggregate from their Tier–I account before retirement.
Tier – II Account
Being a voluntary account, a subscriber can withdraw from it under certain circumstances and is not available under tax benefits. In order to open a Tier-II account, it is mandatory to have a Tier-I account.
What are the Documents Required for PRAN Application?
The documents that are required to apply for PRAN are as follows:
- PAN Card.
- Aadhaar Card.
- Scanned Copy of a Cancelled Cheque.
- Scanned Signature.
- Scanned Photograph.
- Scanned Passport – Mandatory for NRI Applicants.
How to Apply for PRAN?
There are two ways an NPS subscriber can apply for PRAN:
- Offline Method
- Online Method
Offline Method
In the offline strategy, people need to visit Alankits PoP or Point of Presence empanelled under the National Pension System (NPS). There they need to fill up the PRAN card application form that is the NPS Application Form Annexure S1.
The details required under the PRAN card application form are:
- Applicant’s Personal Details.
- Applicant’s Employment Details.
- Applicant’s Nomination Details.
- Details of the Scheme.
- Self-Declaration to PFRDA.
After filling out the form, the subscriber needs to submit it to the concerned official.
Online Method
A subscriber can open a Permanent Retirement Account online by visiting Alankit’s official website and can apply for PRAN using either their PAN or Aadhaar numbers as enumerated below.
PRAN Application Using PAN
- Applicant needs to have a bank account with an empanelled Bank for KYC verification.
- Applicant needs to fill up all the mandatory details online.
- Applicant needs to upload scanned copies of PAN card and cancelled cheque.
- Applicant needs to upload their scanned signature and photograph.
- Applicant needs to make the payment towards their NPS account through the payment portal.
- Applicants can manually sign or e-Sign the form and send it to CRA.
PRAN Application Using Aadhaar Card
Under the PRAN application using the Aadhaar card, the KYC verification is done through the following steps:
- An OTP is sent to the Aadhaar registered mobile number.
- As soon as the subscriber confirms the OTP, the details are auto-populated in the online form.
- The applicant then needs to fill out all the left-over details.
- Upload the scanned signatures.
- After completion, the subscriber will be routed to the payment gateway to conclude the process of the application.
Accordingly, going through this article, it is clear that there are multiple ways by which one can apply for a PRAN card and as for investors comfort, they can pick any application mode and focus on building their retirement.
Why Alankit?
- Worlds cost-effective retirement plans.
- Better returns than traditional options.
- Managed by professionals.
- Enforces investment discipline.
We focus to build better retirement plans, to result in a happy superannuation. Alankit, a dedicated team of experts are here to walk you through every step of the complete procedure, and ensure to resolve all your queries and questions in a best-well manner.