If you have invested in National Pension System (NPS) for achieving your retirement planning goal, then it's essential to keep a close eye on your investment growth. Regularly checking your balance allows you to manage your investments effectively, make necessary adjustments to your contributions and investment strategy, and ensure that you're on track to meet your retirement goals.
What is the National Pension System?
NPS is a voluntary retirement savings scheme designed to provide steady income post-retirement. It is regulated by the Pension Fund Regulatory and Development Authority (PFRDA) and offers several benefits, including tax advantages and flexible investment options.
Functionality of NPS
The National Pension System (NPS) offers two types of accounts: Tier I and Tier II. Tier I is the primary retirement account with tax benefits and withdrawal restrictions, whereas Tier II is a flexible, voluntary savings account without tax benefits. Your contributions are managed by professional fund managers who invest in a variety of asset classes, including equities, corporate bonds, government securities, and alternative assets.
NPS provides two investment options for asset allocation management: Active Choice and Auto Choice. In Active Choice, you can customise the allocation across the four asset classes. Auto Choice, however, features three predefined portfolios based on risk levels: aggressive, moderate, and conservative. You can select the portfolio that aligns with your risk preference.
Withdrawal limits
NPS imposes certain withdrawal limits to ensure the retirement corpus is not depleted prematurely.
For Tier I accounts, partial withdrawals are allowed after three years for specific purposes, such as higher education, marriage or medical emergencies, up to a maximum of 25% of the subscriber’s contributions.
Full withdrawals are only permitted at the age of 60 years, with 60% of the corpus being tax-free, and the remaining 40% mandatorily used to purchase an annuity.
How to check your NPS account balance
1. CRA (Central Recordkeeping Agencies) portal
- Visit the CRA portal which has issued your Permanent Retirement Account Number (PRAN) like Protean, Kfintech or CAMS.
- Use your Permanent Retirement Account Number (PRAN) and password to log in.
- You can view your NPS balance under the 'holding statement' option located under the 'transaction statement' section.
2. CRA app
- Download the app of the CRA through which you have invested from the Google Play Store or Apple App Store.
- Use your PRAN and password to access your account.
- Navigate to the 'balance' section to check your NPS balance.
3. UMANG app
The UMANG app integrates various government services, including NPS.
- Download the UMANG app, available on both Android and iOS platforms.
- Register with your mobile number or login if you already have an account.
- Search 'NPS' and select the option and appropriate CRA.
- Choose 'current holding'. Use your PRAN and password to access your NPS account and check your balance.
4. SMS service
You can check their balance via SMS, Just give a missed call to 9212993399 from the mobile number linked to your NPS account. Shortly after, you will receive an SMS containing information about your NPS account balance.
Also Read: PPF Vs NPS - Key Differences Between The Two Investment Options
Conclusion
Knowing how to check your NPS balance is essential for effective financial planning. With multiple convenient methods available, including online portals, mobile apps and SMS services, keeping track of your NPS balance has never been easier. Regularly monitoring your balance helps you make informed decisions and ensures that you are on track to meet your retirement goals. Axis Bank offers a seamless way to manage your NPS account, providing easy access through internet banking and mobile banking.
Disclaimer: This article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd. and/or the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision.
