Changing the nominee in an NPS account has become considerably easier. PFRDA, the pension fund regulator, has made an online-sign-based nomination change tool available to NPS subscribers. Existing NPS or National Pension Scheme subscribers who want to modify their nomination online can do so by following simple steps.
NPS is a low-cost, tax-efficient, flexible, and portable retirement savings account that is conveniently accessed. The individual contributes to his retirement account through the NPS, and his employer might also contribute to the individual’s social security/welfare.
When you open an NPS account, you can choose a nominee. All of your investments, including your NPS account, should have a nominee. PFRDA allows up to three nominee in NPS account. However, when nominating more than one person, you must give the percentage shares of each nominee. The total share percentage for all nominees should be equal to 100 percent.
There will be no charges if you make the nomination at the time of registering for PRAN. A subsequent request for nomination updation, on the other hand, will be treated as a service request, and you will be charged Rs. 20/- + relevant service tax for each one.
How to add/change nominee in NPS account
Step 1: Login your CRA NSDL
Step 2: Select the ‘Demographic changes’ option from the menu
Step 3: Click on ‘Update Personal details’.
Step 4: Click on ‘Add/update nomination details and click ‘Confirm’ on pop message.
St5p 5: Select Tier type for which nomination details have to be updated.
Step 6: Enter nomination details such as Name, DoB, and other details.
Step 7: Click on ‘Save’ or ‘Reset’ depending on adding or changing the nominee details.
Step 8: Click ‘Add’ if you want to add more than one nominee.
Step 9: Enter details such as the name of the nominee, relationship with the nominee, percentage share and click on ‘Save’.
Step 10: Enter a ’One Time Password (OTP)’ received his/her registered mobile number.
Step 11: e-Sign will be required to validate the modifications after the OTP has been sent by selecting the option ‘e-sign and download’.
Step 12: The subscriber must then e-sign on the ‘e signature service provider’s page after inputting an Aadhaar or Virtual ID. After that, he or she would receive an OTP on the UlDAl-registered cell number.
Step 13: The OTP must then be verified by clicking on the ‘Verify OTP’ button.
Upon authentication, the nomination details will be updated in the NPS records. The change of nomination process is completely digital and paperless; nevertheless, if the e-sign fails, the modifications will not be changed.
FAQs as per PFRDA
1. Can I appoint nominees for the NPS Tier I and Tier II Account?
Yes, you need to appoint a nominee at the time of opening of a NPS account in the prescribed section of the opening form. You can appoint up to 3 nominees for your NPS Tier I and NPS Tier II account. In such a case you are required to specify the percentage of your saving that you wish to allocate to each nominee. The share percentage across all nominees should collectively aggregate to 100%.
2. I have not made any nomination at the time of registration. Can I nominate subsequently? What is the process?
If you have not made the nomination to your NPS account at the time of registration, you can do the same after the allotment of PRAN. You will have to visit your PoP and place Service Request to update nominations details.
3. Can I change the Nominees for my NPS Accounts?
Yes. You can change the nominees in your NPS Tier I account at any time after you have received your PRAN.
4. Are there any charges for making a nomination?
If you are making the nomination at the time of registering for PRAN, no charges will be levied to you. However, a subsequent request for nomination updation would be considered as a service request and you will be charged an amount of Rs. 20/- plus applicable service tax for each request.