Tuesday, December 27, 2011


The New Pension Scheme (NPS) subscribers to the tier I account have the option to activate the tier II account to build bigger savings.

The tier II account is a voluntary savings facility, which allows withdrawal of funds, unlike the tier I pension account, where withdrawals are restricted.

There is no limit on the number of withdrawals from this account. The contributions to the tier II account are invested according to the subscriber’s choice.

The fund and fund manager choices are similar to that for the tier I account. The minimum initial contribution is Rs 1,000 and the subsequent amount is Rs 250 per transaction.

KYC process:

No separate KYC is required for opening a tier II account. The subscriber must have a bank account with cheque book facility.


To activate the account, use Form UOS-S10 if you have registered for the tier I account and have a Permanent Retirement Account Number card (PRAN); use Form UOS-S11, if you don’t have a PRAN card.


The form and documents have to be submitted at the PoP service provider through whom one is registered with the CRA for the tier I account. For government employees, the activation form can be submitted with their respective PAOs through DDO.


One has to pay a tier II account activation fee of Rs 23 and an initial contribution service charge of Rs 23. Given the minimum contribution of Rs 1,000, a sum of Rs 1,046 is paid during activation.

Points to note:

PRAN is common to both accounts.
The applications must be filled in bold letters and black ink, and should be signed by the subscriber.

The tier II subscriber has the option of using the bank account details provided at the time of applying for the tier I account, or provide a new one.

Source: The Economic Times

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