A formal regulatory agency called the Pension Fund Regulatory and Development Authority (PFRDA) was established under the PFRDA Act, which was passed on 01.02.2014, with the aim of promoting old age income security and safeguarding the interests of National Pension Scheme (NPS) subscribers.
The PFRDA has now enabled users to open an NPS account through DigiLocker using their driving licence. Users can also update their address details in the NPS account through the new facility.
NPS is a fantastic way to save for retirement. An investor may deduct a maximum of 2,00,000 in NPS taxes each year.
The NPS tax deduction under this clause is limited to a maximum of 1,50,000. Over and beyond Section 80C deductions, an additional contribution of up to 50,000 can be claimed as NPS tax exemption.
PFRDA has provided the additional features through DigiLocker “as a tribute to 75 Years of India's Independence Day celebration and to commemorate Azadi Ka Amrit Mahotsav.”
Prospective subscribers can use the facility to open their account with Protean Central Record Keeping Agencies (CRAs) while existing users can update their address using through the new method.
Below are the steps to open a new NPS account using your driving license through DigiLocker:
Step – 1 Visit the Protean CRA website and open the NPS registration system
Step – 2 Click on "New Registration with Documents with DigiLocker" and then select Driving Licence from the list of options
Step – 3 You will be redirected to the DigiLocker website where you will have to login using your credentials and also provide consent to CRA for sharing of documents
Step – 4 Now allow NPS to access DigiLocker and documents issued by it
Step – 5 Your demographic information and photo in the driving licence will be autopopulated in the account opening page
Step – 6 Now provide your personal details and details of your PAN card, bank account, and scheme and nomination as required
Step – 7 Complete the application after which payment can be done for NPS contribution
Step – 8 Your NPS account has been created successfully
Follow the below steps to update your address in NPS account using driving licence through DigiLocker:
Step – 1 Login to your NPS account on the Protean CRA website
Step – 2 Click on the ‘Demographic Changes' tab and choose ‘Update Personal Details' option
Step – 3 Select ‘Address Details' and choose the DigiLocker option. Then select Driving Licence under documents
Step – 4 You will be redirected to the DigiLocker website where you can login and provide consent for sharing documents with CRA
Step – 5 Allow NPS to access your DigiLocker account and click on submit
Step – 6 Your address will be updated in the NPS account as per the driving licence