How to Start SIP in NPS: National Pension System Explained

NPS (National Pension System), is a retirement savings account that helps you to save money to secure your future. This scheme is a market-linked investment scheme where you can contribute money on a regular basis, and it grows over time. Any Indian citizen can join and benefit from it.

How to start SIP in NPS

SIP: SIP (Systematic Investment Plan) is a way to invest your money in mutual funds on a regular basis, which focuses on helping you build over time.

Starting an SIP in NPS is never been easier, the entire setting up process is done online and takes just a few minutes. You can complete it in just seven easy steps. which is given below:

1. Visit the official Website of the bank and click on the SIP link/ tab under the NPS section and click on register.

2. Verify Your Details – Enter your PRAN (Permanent Retirement Account Number), Date of Birth, and the OTP sent to your registered mobile number.

3. Click on ‘New SIP Registration in NPS’ and then Submit.

4. Enter SIP Details – Choose the Tier Type, enter the investment amount, and click Calculate.

5. Set Payment Preferences – Select how often you want to invest (monthly/quarterly), pick the SIP start date, and choose the end month, then click Submit.

6. Choose the bank account from which the SIP amount will be deducted and confirm how you want to receive SIP details.

7. Authorize Payment – You will be redirected to your bank’s website to approve the payment mandate (NACH). Once done, you’ll see a confirmation message on the screen and receive an email/SMS confirming your SIP setup.

What are the minimum and maximum investment amounts for setting up an SIP?

You should set up SIPs based on your retirement goals. The minimum amount for each SIP transaction is Rs. 500, and the maximum is Rs. 1,00,000. This limit applies to each SIP instalment, not the total yearly contribution. If you want to invest more in your NPS account, you can set up multiple SIPs.

How to Schedule SIP Deduction on Any Date of the Month?

Now, SIP deduction is available for the 5th, 10th and 21st of each month. Setting up SIP this month then deduction will happen next month.

What happens if a SIP instalment is skipped during the investment period?

It is important to maintain enough balance in your bank account to ensure your SIP payments go through on time. Skipping a SIP payment is not recommended. If a payment is missed, you can still manually contribute the same amount to your NPS account. The missed SIP amount will not be invested in your NPS account, but future SIP deductions will continue as usual from the next month.