[ecis2016.org] In this article, we would focus on all information that you should know about Permanent Retirement Account Number
The National Pension Scheme (NPS) – an initiative by the government of India – is a co-contributory scheme. Through this initiative, the government encourages citizens to save up for their retirement and provides retirement income to all citizens. As part of the NPS, each NPS subscriber who contributes a minimum of Rs 1,000 to a maximum of Rs 12,000 annually will be given Rs 1,000 on behalf of the government. These retirement savings amounts will be reflected in the NPS account that can be accessed using the Permanent Retirement Account Number (PRAN) from anywhere in India. Let us know in detail about PRAN.
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What is Permanent Retirement Account Number (PRAN)?
Every NPS subscriber should have a PRAN, which is made up of 12 unique digits given to a NPS subscriber. This number has lifetime validity.
There are two types of accounts that are under PRAN namely Tier I accounts and Tier II accounts. The Tier I account is for retirement savings and non-withdrawable account. On the other hand, the Tier II account is like a savings account from which a subscriber can withdraw money whenever he wants. Note, an NPS subscriber will not get any tax benefits if he opts for a Tier II account.
PRAN: How to apply?
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One should apply for PRAN by filling forms through the National Securities Depository Limited (NSDL), NPS’s central record keeping agency (CRA). The subscriber should submit all documents to the Point of Presence – Service Providers (POP-SP). Note that a subscriber can have only one PRAN account at a time.
Corporate subscribers: A corporate subscriber should fill CS-S1 form and submit in the corporate office to get the PRAN activated. A corporate subscriber should pay Rs 500 for tier-1 city and Rs 1,000 for tier-2 city, during registration.
Tier I or Tier II account for individuals: For getting PRAN, a subscriber should fill the form and submit it with KYC documents.
If an individual subscriber wants to have accounts in both, tier-1 and tier-2 cities, he should fill a composite form. So, in case the individual wants to open a Tier II account while having an active Tier I account, then, for activating the Tier II form, the individual subscriber should support the form with a copy of Tier I PRAN card.
PRAN: Documents required for applying
The application form for PRAN should be supported with documents including:
- Identity proof
- Address proof
- Subscriber photograph
- Scheme details
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PRAN application status
When a NPS subscriber applies for PRAN, he gets an acknowledgement in the form of a 17-digit receipt number by the POP-SP. This acknowledgement number should be used to check the PRAN application status. Alternatively, one can check with the nodal officer on the status.
If the form and information sent by the POP-SP to the CRA remains incomplete, it will be rejected by the CRA and the same will be intimated to the POP-SP.
PRAN generated notification
Once the PRAN is generated, the NPS subscriber gets an alert through SMS and on his email ID on the registered IDs. Within 20 days from date or receipt of the filled registration form at the CRA, the Permanent Retirement Account Number (PRAN) is generated and the printed card is dispatched.
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