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How to make online contributions to NPS Tier I and Tier II accounts

Here is how all NPS subscribers, including state and central govt. subscribers can make online contributions to NPS. This is post is meant for existing individual, corporate and government subscribers and is not a recommendation to invest in NPS.

If you have an existing account with valid PRAN no (permanent retirement account number), you can,

  1. Go to the ENPS page
  2. Enter your PRAN number and DOB.
  3. After authentication by OTP via both mobile and email, you can make contributions to Tier I or Tier II accounts.
  4. You can pay through debit card, credit card or internet banking options.
  5. I think Rs. 500 is the minimum amount, which I paid to check if the facility works for Government employee accounts.  The whole process was quite smooth.
  6. As of now the Tier option shows ‘voluntary’. This implies a voluntary contribution to Tier I.  There seems to be no option to invest in Tier II account. This can be done via an online SBI SB account.

Online-contribution-NPS

Yes, this facility can be used for investing the extra Rs. 50, 000 tax benefit. However, do not Invest Rs. 50,000 in NPS For Saving Tax!

Remember that tax on this amount is being deferred until withdrawal and you need to pay tax as per slab, on not just the capital gains but on your contributions as well! Stay away from Corporate NPS, if You Wish to Retire ASAP!

If you wish to calculator your NPS corpus and annuity, you can use the recently published NPS Calculator.

Update 1: A Guide to investing in the National Pension System (NPS)

Update 2:  NPS: Partial Withdrawal Rules 2016 are just awful! Beware.

Update 3: NPS Tier 1 Equity Scheme (E) Performance – Oct 2016

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43 thoughts on “How to make online contributions to NPS Tier I and Tier II accounts

  1. Prakash

    Recently in Nov'15 have joined nps. Regularly making the contributions through this online site enps as mentioned. But to my surprise the transaction charges that are applicable is only 69 paise!!!!. I have tried different amounts 7500,8000,20000 but this is the transaction amount. But only thing is sometimes the website gives some error message and thus we are not able to pay, and also only limited number of banks are available for netbanking(mostly PSU banks, not popular/private banks)...

    Reply
  2. Satish

    How many days will it take to credit into our account? Will it happen immediately? I did the online transaction 2 days back, but still it didnt credited to my NPS account.

    Reply
    1. Prakash

      If you had done through enps site, it should credit into your account on T+2 basis (excluding Sat&Sun) based on my previous experience....

      Reply
  3. krishnan83

    I Should have read this post before making contribution to NPS through my ICICI Direct account. They charged Rs. 100 as transaction fees plus 14.5% service tax! Didn't know that you can invest directly via this site. What's the transaction charges?

    Reply
    1. Rao

      0.6% for Internet banking
      0.8% for debit card
      0.9% for Credit Card payments
      + 14.5% Service charge on all transactions
      But pl be aware of connection time-out with SBIpayment gateway!

      Reply
      1. Hemant

        I opened online eNPS account on 23 March 2016 at midnight and I could not pay thorugh netbanking because of poor number of bank available. Most top banks are absent, obviously because of their ego. I chose midnight because the enps website failed throughout the day and frequently session expired.
        I finally had to pay through credid card. Any got a blow of lifetime. I was charged Rs 554/- all inclusive charges instead of 69 paisa charge of netbanking. It is huge sum to pay just because some WISE bank decided to stay out of it or Govt failed to bring them on board. If you have many days in hand before close of financial year, open a 1000 rupees minimum balance account with some of the low end PSU banks and keep paying through them.

        Reply
  4. Mahesh

    What is the benefit of NPS if I am paying 14.5% of service tax on each contribution amount? Its like you are already giving interest amount. 😛

    Reply
    1. Ram G

      Dear Mahesh, The service tax is not on contribution amount but on the transaction fees. Use eNPS and contribute say 10000 rs via netbanking, you pay 60 paise per transaction and 9 paise service tax (14.5% of 60 paise) so the total payout is 10000.69 paise. Pretty cool. Don't use credit card (or even debit card) for whatever reason. In the above e.g you will pay something like 103 rs, the payout will be 10103.05 rs
      If you contribute large amounts like 10000 per shot, and use tier-2 of NPS as a pure debt fund the total cost works out to just 0.1%, perhaps the lowest expense ratio compared to any debt fund where the average debt fund charges 1.5%. However costs are bound to go up, but it will still be the cheapest by a wide margin.

      Reply
      1. Prakash

        As Ram had said, as I had mentioned earlier also, this mode is the cheapest with 0.69 paise for the transaction. Less than any other investment option. Only flip side is that only PSU banks are on the list of banks options to do netbanking.

        Reply
  5. Hemant

    I failed to mention that I paid 50000 contribution to eNPS ( 48k in Tier 1 and 2 k in tier II) on which I had to pay through my nose, Rs 515.25/- transaction and other charges just because I paid through credit card. I had no option.

    Reply
    1. Prakash

      Hemant, As u have said, this is not banks are not willing to join, NPS per se hasn't taken efforts in taking on board all major banks be it PSU/pvt. If you notice, the same sort of situation is persisting across any e-governance applications of many Central/State government departments where because of their lackadaisical attitude, we are suffering by paying this much of transaction charges without no fault of we customers/citizens!!!

      Reply
  6. Surya

    Hi

    I paid through npstrust site on 22nd March 2016 and would like to know when my payment will get reflected in cra-nsdl.com website. I am not able to see my online contribution details there.

    Thanks,
    Surya

    Reply
  7. Rishi

    Hi,

    I paid 49k though eNPS and transferred through Yes Bank. Charges were very less Rs 0.60 only. However, my amount has been debited from Yes Bank but after payment eNPS website gave status as "Failure" under "Transaction Status".
    Does anyone know what to do in this case? i am worried as amount is high.

    Regards,
    Rishi

    Reply
  8. Manoj kumar

    I hv contributed rs 45000 on 26 march 2016. It was my 2nd contribution in same month.txn was success ful through sbirupaycard .but sir till date means 30 march it is not credited to my pran.plz guide us .what to do

    Reply
  9. Rajit Ghosh

    I transferred Rs. 51000 to my NPS account on 4th April 2016 through ICICI Bank online banking. Even today the amount has not got reflected in my NPS account though it is debited from ICICI Bank. How long does it usually take?

    Reply
  10. Karthik

    Any Idea about withdrawal from nps tire 2 account? Can it be initiated online. Who would be POP for accounts opened online

    Reply
    1. B

      The online option does not have Tier 2 withdrawal option. you will have to submit form physical to your POP

      Reply
  11. Rangarajan

    A transaction charge seems to have been introduced. I tried to pay Rs 20,000.00. it showed Rs 20200.00+ to be debited. Earlier it was not so.

    Reply
  12. Dominic

    The sbiepay system is NOT AT ALL DEPENDABLE. Please note that most of the it wont work. It will break in between.

    Reply
  13. Selvaraj

    Could you please assist me to avail additional exemption up to Rs 50,000 in NPS is eligible for income tax deduction. This was introduced in Budget 2015. should i invest in tier1 or tier2, if service tax is 15% means then what we can save for tax ? not clear is really tax benefit or waste?

    Reply
    1. Prakash

      In this blog itself there is an excellent article on whether or not to invest in NPS....

      As far as 50000 exemption it is only for Tier I.. You can apply for PRAN and after which you can invest this amount either lumpsum or on monthly basis using online or offline modes.

      Reply
    1. freefincal

      (1) Your F/O officer may be able to process a salary deduction request. Else (2) if you have a SBI acct, you can pay via there (online) or (3) via the NPS portal. I have done 2 and 3.

      Reply
  14. sandeep khera

    I am not sure how you calculating it but for Netbanking it is .6% +15% ST. So if we contribute 10k then we have to pay 60+9=69/-
    And with Debit card it is 80+12=92/-
    Sandeep

    Reply
  15. Sumit

    I am trying to make NPS payment offline as my Citibank is not tied up with SBI ePay for online payment. I have visited 5 different banks mentioned in NPS website as POP-SP. But all of them failed to process payments. 3 of them simply denied accepting cheque and two accepted cheques but returned after a week saying they don't have guidelines to process NPS cheques.
    NPS management seriously need to resolve this problem. Complaint to NPS many times but they have just one reply i.e please visit other banks mentioned in the list. There are more than 1000 banks mentioned for my city, should I try each one.
    Better to pay 550/- extra as transaction charge and pay online through Citibank.

    Reply
  16. B

    I think..the rule says that you should go to the same PoP where you have opened the account for any type of transactions....or online...

    Reply
  17. B

    No. The charges for Transferring 10000 rs are Service Charge Rs5 and ST on it Rs0.75 so total only Rs 5.75

    Reply
  18. Sumit

    As per rule, we can approach any POP-SP bank and make our contribution by submitting NCIS form and cheque/cash. But the banks are not yet ready to process NPS payments. Paying online through SBI ePay gateway carries approx 1% transaction charge on debit/credit cards. It is very cheap if your bank is registered in SBI ePay so that you can make payment through NetBanking where we need to pay fix amount of around 1/- only on any amount. However, I found one more way to pay for NPS online. That is through CAMS website as they are also registered as POP-SP. http://www.camsonline.com/NewPensionSystem/COL_NPSOnlinePayment.aspx
    They have mentioned RTGS payment mode and is very simple process. I tried it myself and my contribution was reflecting in NPS statement on T+2 day. Charges for such mode is 0.25% with minimum charge as 20/-.

    Reply
  19. vipin

    sir i want to open NPS account but quite confused either eNPS or via HDFC pension as i was hear form my past experience its tough to get settle in final term.

    Reply
  20. pushkar

    I am getting error 405 while NPS contri for the first time. What should i do.

    How can i make contri to my nps.

    Reply
  21. Ram G

    Hi guys, Just an update for those who opened their NPS accounts via PoPs, typically banks. You have to either shell out 0.25% of contribution amount each time if you invest via PoP or 0.05% if you use eNPS. So banks are freeloading on the subscriber, as this was before eNPS.
    Now you have an option to shift to eNPS by selecting '"Shift to eNPS" under "Transaction" menu. Click and after an OTP confirmation, you are free from your POP forever. If you use netbanking you just pay 0.60 paise + GST.

    Reply

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