The National Pension System (NPS) is a pension investment scheme initiated by the Government of India to offer old age security to Indian citizens. Regulated by the Pension Fund Regulatory and Development Authority (PFRDA), this scheme aims to provide financial stability during retirement.
As of August 2021, the government has mandated the linking of Aadhaar to an NPS account as a prerequisite for accessing various services. This requirement particularly applies to individuals, such as traders and self-employed individuals, who are eligible for benefits under the National Pension Scheme. The Aadhaar card has been designated as a crucial proof of identification to facilitate the seamless provision of benefits and ensure the efficient functioning of the scheme.
In a concerted effort to minimize forgery, the Government of India has undertaken the initiative to connect various schemes with personal documents. One such measure includes integrating Aadhaar card details with pension accounts.
The linkage of Aadhaar with the National Pension System (NPS) serves as a centralized repository for individual data. This streamlined approach allows individuals to access their pension information effortlessly whenever needed, contributing to a smoother and more convenient process without the complications associated with traditional methods. This initiative not only enhances security but also aims to provide a hassle-free experience for individuals seeking to claim their pensions.
Benefits of linking Aadhaar with NPS account
Linking Aadhaar with an NPS (National Pension Scheme) account in India can provide several benefits:
- Ease of identification
Aadhaar is a unique identification number issued by the Indian government. Linking Aadhaar with your NPS account simplifies the identification process and ensures accurate identification of the account holder.
- Seamless transactions
By linking Aadhaar with your NPS account, you can enjoy a seamless and convenient transaction experience. It eliminates the need for multiple documents and verification processes, making it easier to manage your NPS account.
- Easy access to account information
Aadhaar linked with your NPS account allows for quick access to your account information. You can easily view your NPS balance, transaction history, and other details through the online portal or mobile app.
- Enhanced security
Aadhaar authentication adds an extra layer of security to your NPS account. It helps prevent unauthorized access and ensures that only the rightful account holder can carry out transactions or make changes to the account.
- Simplified account opening
Linking Aadhaar with NPS simplifies the account opening process. It reduces the paperwork required for KYC (Know Your Customer) verification, making it faster and more efficient to open an NPS account.
- Government subsidies and benefits
Aadhaar linkage is often required to avail government subsidies and benefits related to the NPS. For example, if you are eligible for any social security schemes or government contributions to NPS, linking Aadhaar is usually a prerequisite to receiving those benefits.
- Consolidation of financial records
Linking Aadhaar with your NPS account helps in consolidating your financial records. It becomes easier to track and manage your pension savings alongside other financial accounts and investments.
Steps to Link an NPS Account with Aadhaar Online (for Existing Subscribers)
The Aadhaar card link through the NPS account requires existing users to follow the steps mentioned below.
- Visit the official website of NPS, i.e. https://cra-nsdl.com/CRA/.
- Access your NPS account by logging in.
- Click on ‘Update details’ in the menu.
- Choose ‘Update Aadhaar/Address’ details under the ‘Update Details’ section
- On the landing page, provide your Aadhaar number and confirm it
- Initiate the process by clicking the ‘Generate OTP’ button
- By clicking the “Proceed” button, you authorize NSDL e-GOV to start the linking procedure.
- Your Aadhaar card’s registered mobile number will receive an OTP.
- In the designated box, enter the OTP.
- Select “Continue” from the menu.
Upon successful authentication, the Permanent Retirement Account Number (PRAN) used for logging into the NPS account will be linked with the provided Aadhaar number. A confirmation message will be displayed, indicating the successful completion of the NPS Aadhaar link process.
How to link an NPS Account with Aadhaar Online (for New Subscribers)?
To link your Aadhaar number while opening a new NPS account, follow these simple steps:
- Navigate to the NSDL e-NPS official website.
- Select the ‘Registration’ option.
- Provide your Aadhaar card number after selecting the appropriate options.
- Click on the ‘Generate OTP’ button.
- Check the disclaimer box and choose the ‘Proceed’ option.
- An OTP will be generated and sent to the mobile number linked with your Aadhaar. Enter the OTP and proceed by selecting the ‘Continue’ option.
- Complete the NPS registration form with the required information.
- Proceed to make the necessary payment for the registration.
- Upon successful completion, an acknowledgment number will be generated.
- Submit the registration details, leading to the generation of the Permanent Retirement Account Number (PRAN).
- To finalize the NPS Aadhaar link, electronically sign the registration form as part of the concluding steps in the process.
Important Points to Remember While Aadhaar – NPS Linking
Before proceeding to link Aadhaar with NPS, consider the following factors:
- Correct Aadhaar Information
Ensure that the Aadhaar details you provide for linking are accurate and match the information in your NPS account.
- Registered Mobile Number
Make sure that the mobile number linked to your Aadhaar is accessible, as OTPs and other communication will be sent to this number during the linking process.
- PRAN Details
Have your Permanent Retirement Account Number (PRAN) readily available, as it will be required during the Aadhaar linking process.
- Secure Internet Connection
Use a secure and reliable internet connection to prevent any disruptions during the online linking process.
- Updated Documents
Ensure that your Aadhaar and NPS account information is up to date. If there are any changes, update the information before initiating the linking process.
- Compliance with Guidelines
Familiarize yourself with the guidelines and instructions provided by the NPS authority for Aadhaar linking to ensure compliance with the process.
- Authorized Channels
Use only official and authorized channels, such as the official website or designated service centers, for linking Aadhaar with NPS to avoid potential fraud or misuse.
- Privacy and Security
Be cautious about sharing sensitive information and use secure and trusted platforms to protect your privacy and financial details during the linking process.
Taking these considerations into account will help ensure a smooth and secure process when linking Aadhaar with NPS.
Frequently Asked Questions
No, to link NPS with your Aadhaar, you must verify your OTP. Therefore, OTP verification and connection would be impossible if your Aadhaar-registered mobile number differs from the one you now use.
These workers would have to ask a concerned nodal officer for permission to link in this way. The connection process would not be deemed complete without this consent.
The inability to connect Aadhaar and NPS could make it more difficult to get pension benefits.
Although there isn’t a set timeframe, it’s best to connect as soon as possible to ensure uninterrupted services.
No, a single NPS account can only be connected to one Aadhaar.
