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.
Everyone hates paying taxes and always are on lookout for Options to Save Tax. However…
Are you worried and confused about Lien amount in SBI? Well you are not alone.…
Get details of latest Sovereign Gold Bond Price, Issue details, taxation and how to invest.…
Download the Excel based Income Tax Calculator India for FY 2020-21 (AY 2021-22). This compares…
Piramal Capital & Housing Finance, has come out with Piramal Capital & Housing Finance Ltd…
IIFL Home Loan, the Housing Finance company from IIFL Group has come out with IIFL…
View Comments
I dont see the option, how did you switch it?
Good Afternoon sir,
I have opened my NPS account through POP mode in the year 2018 & now if I want to shift to e-NPS mode, how can I do it?
I want to avoid paying commission or service charges to the POP - SP.
Please guide me..
Thank you in advance...
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?”
Hi,
I am not able to see the option "Shift to ENPS" under transaction tab.
please guide.
thanks,
Acc. to the new circular PFRDA/17/01/03/0001/2017-SUP-CRA-Part(3) dated 1 Oct 2020 (link: http://s000.tinyupload.com/index.php?file_id=40096959216491745704), POP subscribers can’t move to eNPS but the other way around is allowed, so the users who originally registered with a POP are forever stuck paying the POP commission charges. This is a regressive step where PFRDA has forced both the CRAs (NSDL & Karvy) to disable already implemented functionality of shifting to eNPS.
The Shift to eNPS feature has been disabled on both the CRAs (NSDL & Karvy) on direction of PFRDA. Check the circular PFRDA/17/01/03/0001/2017-SUP-CRA-Part(3) here: http://s000.tinyupload.com/index.php?file_id=40096959216491745704
This doesn’t look right, acc. to it, POP subscribers can’t move to eNPS but the other way around is allowed, so the users who originally registered with a POP are forever stuck paying the POP commission charges. This is a regressive step where PFRDA has forced both the CRAs (NSDL & Karvy) to disable already implemented functionality of shifting to eNPS.
This “Shift to eNPS” option is not coming now in NPS portal. Please suggest how can we shift to eNPS.
Hi Guys,
I am not able to find this option Shift to eNPS on NPS CRA. Can anyone help me to find this option?
Anu help appreciated.
Thanks
I tried the link to convert NPS to eNPS, but the Menu Options you have suggested above DO NOT appear. There is no Option to convert NPS to eNPS?
Shift to eNPS option is not showing up in the NPS Netbanking? Is it still available or not?