Axis Bank NPS - Process, Benefits and Eligibility

Axis Bank NPS (National Pension Scheme)

National Pension System is a retirement savings scheme initiated by the government of India with an objective to secure the retirement future of the individual. Along with the benefit of market-linked investment returns, the low-cost structure, tax efficiency and investment flexibility has made NPS a lucrative choice of investment for retirement planning. The Axis Bank has been appointed by the PFRDA to act as a points or Preference (POP) for NPS.

Salient Features of Axis Bank NPS

NPS is a low cost investment option, as the minimum initial contribution towards the NPS Tier-I account is Rs. 500 and the minimum contribution to NPS Tier-I account is Rs. 1000 per annum.

NPS is regulated by the Pension Fund Regulatory and Development Authority of India.

The plan offers an extensive range of choice of funds, fund manager and investment options.

Decrease/ Increase the investment amount for the year.

The investor can choose different scheme preference, asset allocation and pension fund manager for Tier-I and Tier-II account.

The subscribers can nominate different nominee for Tier-I and Tier-II account.

Tax Benefit

The contribution made towards the NPS scheme up to the maximum limit of Rs. 1.5 lakh is applicable for tax exemption U/S 80C of the Income Tax Act. Moreover, the subscriber can claim any additional self-contribution up to Rs. 50,000 U/S 80CCD (1B) of the IT Act. Therefore, the scheme allows a total tax deduction up to Rs 2 lakh.

Online Process to Invest in Axis Bank NPS Account

An individual can start investing the NPS account through eNPS portal offered by the government. The individual can invest online if their Axis Bank account is linked to their PAN card. Moreover, they can also register for net banking facility offered by Axis Bank to open online NPS account. Let’s take a look at the process to follow.

Go to the eNPS portal https://enps.nsdl.com/eNPS/NationalPensionSystem.html and choose NPS option.

Choose the registration option to register yourself.

Enter the required details in the registration form like name, address, PAN card, Phone number, age, email ID, etc.

An OTP will be sent to the registered mobile number with the PAN card.

To complete the process of verification, enter the OTP.

Choose the investment account as per your suitability.

Choose the Pension Fund Manager.

Choose the investment strategy from Auto or active choice.

Enter the beneficiary/ nominee details.

Upload the KYC documents which are required while opening the NPS account.

Make online contribution to open the NPS account and complete the process of registration.

Once the payment is done, the registration form is displayed on screen containing the details.

The PRAN (Permanent Retirement Account Number) is generated after the registration and contribution of the scheme is completed.

Download the form attach the KYC documents and Photograph on the form and mail it to the CRA (Central Recordkeeping Agency) for completing the process of account opening. The form should be sent within 90 days from opening the online account.

Offline Process to Invest in Axis Bank NPS Account

To open an offline Axis Bank NPS account, the investors will need to visit the branch office of the bank and submit an application for the opening of NPS scheme. All the Axis Bank Branch offices acts as a Point of Presence Service Providers). Thus, the investor can visit any nearest bank ti open the NOPS account. The investor will need to fill the NPS registration form thoroughly including all the important details as asked in the form . Attach the photograph on the form and the KYC documents and submit the form to the branch office.

Once the form is submitted, the branch office will verify the details in the form and after completion of the verification process the NPS account would be opened.

Documents Required While Opening Axis Bank NPS Account

Here are the documents required while opening the Axis NPS account.

Identity proof like Passport, PAN Card, etc.

Age Proof like Passport, Voter ID, Aadhaar Card.

Address Proof like Aadhaar Card, Utility Bills, Driving License, etc.

Scanned Copy of the signature for the online mode

Copy of cancelled cheque or passbook of your bank account.

The NPS account can be opened only in case the documents submitted are verified.