SIP: How to set up SIP for NPS in post office

A resident or non-resident Indian who is between the ages of 18 and 70 at the time of application is eligible to open an National Pension Scheme (NPS) account in India Post adhering to the KYC requirements.

India Post has announced the launch of online services for the National Pension Scheme (NPS), where subscribers can invest in NPS without visiting a post office. The online service was made available beginning April 26, 2022.

The contribution can be paid in cash, local cheque, demand draft, or Electronic Clearing System (ECS) at the subscriber’s preferred POP-SP.

According to India the Post website, “However, for cash transactions exceeding Rs.50000/- subscriber needs to submit the copy of the PAN card as per the Anti-Money laundering (AML) rules. Also, No outstation cheques shall be accepted.”

NPS online services are available for new registration, initial/follow-up contributions, and SIP options.

NPS SIP registration

  • Once a subscriber has registered for NPS, he/she can apply for the Systematic Investment Plan (SIP) route.
  • According to NSDL, below are the benefits of investing in NPS through SIP:
  • SIPs give you the ease of making small, recurring investments on a regular basis. It’s ideal for subscribers who want to invest a certain amount on a monthly basis, and it’s also easier on the budget.
  • Helps you better prepare for your goals because you won’t have to make lump sum payments for your NPS account after you set up a SIP.
  • SIP allows you to take advantage of the ‘Power of Compounding’ by investing frequently over time.
  • Rupee Cost Averaging eliminates the need to time the market.

Things to note

Before you start, there are a few things to keep in mind.

1. An ‘Active’ NPS account is required.

2. You must have phone number and email address registered with your NPS account.

3. You must either have a net-banking facility activated with your NPS-mapped bank account or any other bank account with an active net-banking facility.

4. For the SIP process, you will use the PAYTM payment gateway.

5. The minimum and maximum amounts for SIP setup are Rs 500/- and Rs 1,00,000/- respectively.

6. The one-time SIP set-up fee of Rs 3.50 (plus applicable taxes) will be deducted from your NPS account at the end of the quarter as an equal unit deduction.

7. A SIP instruction will automatically deposit Debit instructions from subscribers’ savings/current accounts on a regular basis, similar to the ECS process, until the set end date. Subscribers can invest in NPS on a monthly, quarterly, half-yearly, or yearly basis using this service.

Steps for SIP registration

Step 1: Subscriber should enter PRAN number and DOB, then choose between email, mobile, or both, and click “Submit OTP.”

Step 2: The subscriber will receive a one-time password. Click “Continue” after entering the six-digit OTP.

Step 3: Click “Submit” after choosing “New SIP Registration in NPS.”

Step 4: SIP Amount, Tier Type, SIP Date, Maturity Month and Year, and SIP Frequency are all mandatory fields for the subscriber.

Step 5: For the online e-mandate process, the subscriber must input bank data. The money will be collected out of the same account.

Step 6: The details supplied for the verification procedure will be shown to the subscriber. Click “Continue” after you’ve verified everything.

Step 7: The SIP registration will be sent to the bank for approval. When the authorization is approved, the payment will be deducted from the Subscriber’s bank account in accordance with the SIP Amount and SIP Frequency.

Step 8: The “Status of SIP Registered” and “List of SIP Transactions” are also available to subscribers.

How to cancel SIP

An existing subscriber can cancel SIP registration if they wish to. To cancel, they can follow the below steps

Step 1: Enter PRAN number and DOB, then choose between Email ID, Mobile Number, or Both, and click “Submit OTP.”

Step 2: The subscriber will receive an OTP. “Continue” after entering the six-digit OTP.

Step 3: Click “Cancellation of SIP” and then “Submit.”

Step 4: Click “Submit” after selecting the SIP ID that has to be cancelled.

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