In case if you have logged in to your NPS Portal recently you get an option about “Shift to eNPS”. In this post we explain about What is eNPS, the benefits of eNPS and process to shift to eNPS.
eNPS is NPS account which has been opened by subscribers using Aadhaar on CRA portal only i.e. account was opened online without visiting any of the POP-SP (Point of Presence – Service Providers). Since eNPS was not available earlier so most of accounts that were opened earlier were using POP-SP.
Also Read: NPS Tax Benefit u/s 80CCD(1), 80CCD(2) and 80CCD(1B)
The short answer to what you should switch to eNPS is because it lowers your investment cost to NPS. Here is the detailed explanation.
PFRDA, the regulator for NPS had revised the charges for POP-SP in October 27, 2017. Below is the snapshot of the new charges.
Also Read: Should you Invest Rs 50,000 in NPS to Save Tax u/s 80CCD (1B)?
The upper half which has to be collected upfront has anyway already been paid by subscribers while opening the NPS account. But two additional charges are also paid as follows:
Also Read: 5 Steps to Transfer EPF to NPS
Though the charges are not high but seems useless as NO further service is being provided by POP. Also, these charges may keep of revising as happened with the above notification where the subsequent contribution charges where revised from 0.05% to 0.10%. The Persistency charge is also new from 2017.
If you contribute Rs 50,000 in NPS in one go, then keeping your POP would cost you Rs 118. In case you do investment in multiple installments, the charges would go up.
Hence my advice is to shift to eNPS and save these unnecessary charges and uncertainty in these charges in future. This is like shifting to Direct Plan from Regular Plan in Mutual Funds.
I do not see any drawback of this switch, if you know of any please share.
Thankfully switching to eNPS is easy and can be done from the NPS Portal. We share the steps with screenshots below:
Step 1: Login to Your NPS Account
Step 2: Select “Shift to eNPS” from Menu
Step 3: Confirm the Details
Also Read: NPS – Maturity, Partial Withdrawal & Early Exit Rules
Step 4: Enter OTP that you get on your registered mobile number
Finally, you get the Acknowledgement
Also Read: How to Save Income Tax for Salaried and Professionals for FY 2018-19?
I got the below email from cra@nsdl.co.in confirming the shift to eNPS was complete the same day.
If you had used POP to open NPS, its good idea to Shift to eNPS. Given that it is easy to do with click of some buttons, you must do it and reduce your cost of investment.
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View Comments
What are the charges for Non-Financial transactions in eNPS?
'Shift to eNPS' is not there in the Menu
When I am going to shift eNPS from NPS, it shows that '' One way switch request is already present in your PRAN''.. I am unable to do this!
Hello Amit,
Great advice. I switched to eNPS today only. Thanks!
I have another NPS related question I can't find the answer anywhere, please help in case you know.
I invested in NPS Tier 2 account in 2016 once. There were brokerage charges for next 2 quarters. But since then there has been no charge as per NPS transaction statements. I am wondering why is that? because of my account inactivity? or Tier 2 is indeed such low cost investment that there are no maintenance charges?
Sir, I newly open ENPS account through online and my POP show that Enps Online.. sir, my questions is that "if I continue payment my eNps account where POP mentioned ENPS ONLiNE then is it any withdrawaling problems arise after 60 years?"
Can we change DOB online
Can an employee of an autonomous central government organization who is under old pension scheme apply for enps?
hii
this is jagadeesh can any body tell me the procedure to change communication and permanent address associated with NPS
I suggest, if you have already opened NPS Account through POP-SP, better to keep it for viewing the current value of your investment. However you can place contribution using NPS portal via eNPS. Makes sense?
I am not able to see the option of "Shift to e-NPS" under the heading Transact online.
Hello Did you found a solution for same? as i dont see any option in my login also
Corporate/Gov accounts (i:e accounts wherein corporate/Government are contributing) cannot be shifted to e-NPS. Only individual accounts can be shifted.
Thanks this is correct info