How to Transfer Money to NPS Account: Contribution Process Explained

What are the Modes of Contribution to an NPS Account?

You can contribute to your NPS account through online and offline methods. The NSDL and CRA (Central Recordkeeping Agency) have simplified this process through secure digital platforms and authorised physical locations.

Steps for Making Online Contributions via eNPS

Here's how to easily contribute to your NPS account online through the eNPS portal and make your retirement planning process smooth and secure:

Step 1: Navigate to the eNPS website.

Step 2: Click on the 'Contribution' tab and choose 'Contribute Online'.

Step 3: Enter your PRAN and date of birth for verification.

Step 4: To verify your PRAN, choose to receive an OTP via SMS or email, enter the captcha, and click 'Verify PRAN'.

Step 5: Select the account type, Tier 1 Account or Tier 2 Account, and input the contribution amount.

Step 6: The system will display applicable charges and the total amount payable.

Step 7: Select your preferred payment gateway, accept the terms and conditions, and click 'Make Payment' to complete the transaction.

How to Contribute Using UPI

Unified Payments Interface (UPI) enables real-time transfers via mobile platforms. Here's how to contribute using UPI:

Step 1: Download a UPI app, register your UPI ID, set your MPIN, and link your bank account.

Step 2: On the eNPS portal, select UPI as the payment option and enter your UPI ID.

Step 3: You’ll receive a notification on your UPI app with the payment details. Open the app and review the transaction.

Step 4: Log in to your UPI app, verify the payment details, and enter your MPIN to authorize the transaction.

Step 5: Once the payment is successfully processed, you will receive a confirmation message in the UPI app.

How to Contribute via the NPS Mobile App

You can make contributions easily through the NPS Mobile App. Here's how:

Step 1: Download the NPS mobile app from the Play Store or App Store.

Step 2: Provide your PRAN, date of birth, and captcha, then click 'Verify PRAN'.

Step 3: Enter the OTP sent to your registered mobile number or email.

Step 4: Choose the account type (Tier 1 or Tier 2) and enter the contribution amount.

Step 5: The system will display applicable charges. Choose your payment method and complete the transaction.

How to Deposit Money in an NPS Account Offline

Contributing to your NPS offline is straightforward, allowing you to make payments physically. You can visit an authorised bank branch or an NPS Point of Presence (POP-SP) centre. Below are the steps for both:

This method involves depositing money at a bank branch or a POP-SP centre:

Step 1: Go to your nearest POP-SP centre or authorised bank branch. 

Step 2: Fill out the NPS Contribution Instruction Slip (NCIS) with the details like PRAN, name, date of birth, contribution amount, and payment mode.

Step 3: Submit the filled form and your contribution via cheque, demand draft, or cash.

Step 4: Collect the receipt as proof of your contribution.

Step 5: Your contribution will be credited to your NPS account within T+2 working days.

This process can be done at any authorised bank branch or POP-SP centre, giving you the flexibility to contribute to your NPS account.

Tips for Smooth NPS Deposits

To smoothly process NPS deposits, keep in mind the following points: 

• Understand Minimum Contributions: Tier 1: ₹1,000 annually. Tier 2: No minimum contribution.
• Minimum Online Contributions: Tier 1: ₹500. Tier 2: ₹250 for online deposits.
• Consider Regular Contributions: Make regular contributions to stay on track with your retirement goals, rather than waiting for lump sum deposits.
• Maximize Tax Benefits: Tier 1: Deduction up to ₹2 lakh under Sections 80C, 80CCD(1), and 80CCD(1B). No tax benefits for Tier 2.
• Track Your Contributions: Always log in to check if your payment is reflected after making a deposit.

Conclusion

Transferring money to your NPS account is simple and secure through multiple online and offline methods, including the eNPS portal, mobile app, UPI, and POP-SP centres. NPS not only helps build a substantial retirement corpus but also is a good tax savings option. Regular contributions and smart planning can lead to a financially stable retirement.