What is a PRAN Number and Why Do You Need One?

What is PRAN Number and Why Do You Need One?

Many people who have heard of or invested in the National Pension Scheme (NPS) in India have heard this term but may not know its meaning.

The Permanent Retirement Account Number (PRAN) is a unique 12-digit identifying number given to all individuals who enrol in the NPS scheme. PRAN number is important in planning the retirement process since it helps the government manage and track all the pension accounts that comes under the NPS framework.

The main purpose of PRAN is to identify all NPS subscribers and help them manage their retirement savings. It also ensures that all transactions and account activities are correctly accounted for and can be tracked.

In this article, let us look at how to get pan number online, benefits and why you need one in your retirement plan.

What is PRAN Number and Why Do You Need It?

PRAN stands for Pension Retirement Account Number. This 12-digit unique number code is given to every subscriber of the National Pension Scheme. Like a PAN number linked to accounts, a PRAN is linked to pension contributions. 

Role of PRAN in National Pension Scheme

• It lets you track and manage all of your NPS pension contributions.
• Your number stays the same if you move jobs, locations or employers.
• It keeps your savings, refunds, and withdrawals safe and accessible.
• An NPS account cannot be used without a PRAN.

Eligibility Criteria for PRAN

If you are an Indian citizen who is at least 18 years old, you can enroll in the NPS anytime and get a PRAN number. But you cannot join after turning 60. Starting early is important because it helps your wealth grow through compounding. The sooner you begin, the more your pension wealth will increase. Once your account is opened, you get a “Welcome Kit” by mail which includes your Permanent Retirement Account Number (PRAN) and other account details. 

When you apply for registration, you need to make your first contribution at any POP-SP. Here are the contribution requirements:

Minimum amount per contribution: Rs 500

Minimum contribution per year: Rs 6,000

Minimum number of contributions: 1 per year

You can choose how often to make contributions throughout the year, provided you meet the small requirement of one contribution per year.

Documents Required for PRAN Application 

You need to submit KYC documents for the PRAN application.

• Pan Card 
• Aadhar Card 
• Scanned Copy of Cancelled Cheque 
• Scanned Copy of Passport Size Photo 
• Scanned Copy of your Signature 

How to Get a PRAN Number 

Only a PRAN number can get you into NPS. You can do it either way, online or offline. 

Online Application 

• Go to the NSDL eNPS website.
• Complete the registration using your Aadhaar or PAN card for KYC verification. You will receive an OTP for authentication on your registered mobile number or email.
• Enter all details online, including uploading scanned copies of your photograph and signature.
• Pay online to make the initial contribution to your NPS account.
• Your PRAN will be generated upon successful registration. You can print or save a copy for future reference.

Offline Application

• Go to the nearest Point-of-Presence (PoP) location registered with the National Pension System (NPS) network. 
• Collect the Subscriber Registration Form (CSRF) from the PoP officials.
• Complete the form with the details and attach documents. Such as Aadhaar, PAN, a cancelled cheque, a photograph, and other KYC documents.
• At the PoP, submit your completed form. Do the initial contribution payment through cash, cheque, or demand draft.
• After successful verification, you will get your PRAN on your registered email and mobile number. 
• The physical NPS PRAN card will be dispatched to your address in 20 days.

PRAN Application Online Process for NRIs 

If you’re wondering how to get a PRAN number for nps, you can easily do it online: 

• Visit the NPS eportal, which the Pension Fund Regulatory and Development Authority manages. 
• Click on “New Registration” and select from Tier I and Tier II 
• For verification, enter your PAN, Aadhar Card and Bank Account Details 
• Select auto or manual fund for corporate funds and government securities
• Upload scanned copies for PAN, Aadhar Card, Signature and Passport Size. 
• Make the minimum deposit of (₹500 for Tier I and 1,000 for Tier II)
• After the application, you receive your PRAN from the Central Recordkeeping Agency (CRA) 

Features & Benefits of Having a PRAN Number 

A PRAN number gives you benefits that make investing in NPS safer, and better for your retirement planning.

Simplified Pension Management

Your PRAN number is a unique ID that helps you track your pension contributions, withdrawals, and other transactions. Meaning, everything This means everything related to your account is accurately recorded and easy to find.

With PRAN, you can check your pension contributions, investment details, and more online or at designated Points of Presence (POPs). This helps you plan your finances better as you prepare for retirement.

The PRAN system makes it easy to deposit your pension contributions, whether from you or your employer. This ensures your money goes into your retirement savings on time and accurately.

Portability & Accessibility  

Your PRAN stays the same throughout your life, making it simple to transfer your NPS account if you move or change jobs. This way, you don’t have to open a new account when relocating.

You can access your NPS account anywhere in India using your PRAN number. This is especially helpful if you need to manage your account while travelling or away from home.

Your PRAN is a single ID for tier-I and II NPS accounts. This simplifies account management and ensures that all transactions are linked to you.

Linking PRAN Number with Retirement Plans 

Linking a Permanent Retirement Account Number (PRAN) with life insurance products, such as those provided by Shriram Life Insurance, can enhance financial security for retirees. Your PRAN number can be linked to your life insurance policies to purchase an annuity. An annuity is a monthly payment that you will receive after retirement. The annuity you receive will depend on the amount you invested, the type of plan you choose, and your insurance service provider. 

You can link the PRAN number with your Life Insurance using the following method:

Exit the NPS by giving an exit request and allocate at least 40% of your corpus fund to purchase an annuity plan.

Link your PRAN with your life insurance policy to enjoy additional benefits. You can invest your money in Shriram Life Insurance plans such as the Early Cash Plan (ECP), Assured Income Plan (AIP), etc.

Integration with Life Insurance Products

Linking life insurance with NPS gives you both savings and protection in one plan.

Comprehensive Financial Security

• Shriram Life Insurance is listed as an Annuity Service Provider (ASP) for the National Pension System (NPS). This means that as an NPS subscriber, you can use your accumulated corpus upon retirement to purchase annuity plans from Shriram Life and receive a steady income stream. 
• Shriram Life provides various annuity options, such as the Immediate Annuity Plus plan, which provides flexible financial solutions for maintaining your lifestyle post-retirement. 
• Additionally, products like the Shriram Life Pension Plus allow you to build a retirement corpus while enjoying insurance protection. This plan provides long-term coverage and loyalty additions, enhancing the financial security provided by the NPS.

Monitoring & Managing Contributions

Benefits of Using PRAN for

• With a PRAN, you can monitor your retirement contributions and investment growth. This transparency helps you make informed decisions regarding additional contributions or changes in your investment strategy.
• PRAN enables easy management of tier-I and tier-II NPS accounts, allowing you to adjust your contributions based on financial goals and market conditions.
• By linking PRAN with annuity services like those that Shriram Life provides, retirees can easily convert their NPS savings into regular pension payments, ensuring a smooth transition from active earning years to retirement.
• Linking PRAN with annuity services 
• For those considering the combination of insurance and retirement savings, check out our life insurance with pension benefits (Shriram Life Pension Plus) product, which provides a comprehensive approach to financial security.
• Exploring flexible pension plans can help you plan your retirement payouts that fits to your lifestyle needs. Don’t forget to review the tax benefits on retirement plans that enhance your savings strategy.

Common Issues and Solutions

NPS users may face a few common issues, but they’re easy to fix.

Lost or Misplaced PRAN Number

If you have lost or misplaced your PRAN number, here’s what you can do:

• Fill out Form S2, requesting the reissue of a PRAN card.
• Submit the completed form to your concerned Drawing and Disbursing Officer (DDO).
• After verifying the form, Nodal Office will process your request in the Central Recordkeeping Agency System.

Errors in PRAN Details

To correct inaccuracies in your PRAN information, you need to use NPS Form S2. 

Correction Process (How to do it)

• Get Form S2
• Use the following sections in your form to change the details you want

1. Section A to update your personal details.
2. Section B to change your nominee details
3. Section C to request a reissue of your I-PIN and T-PIN
4. Section D to reissue your PRAN card

• Include identity proof, address proof, and a cancelled cheque if updating bank details.
• Send the completed form and documents to your Nodal Office or POP-SP.
• The Nodal Office or POP-SP will check your details and process your request.

Checking the PRAN Application Status 

After applying for PRAN, subscribers can check their online status through the Central Recordkeeping Agency, such as NSDL-CRA. Enter your PRAN Number to track details. 

CRA NSDL Role in PRAN

The Central Recordkeeping Agency (CRA), run by NSDL (National Securities Depository Limited), is an important component of the NPS system.  Its responsibilities for PRAN include:

•  Subscribers are assigned a unique PRAN number.
•  Maintaining a centralised database with all PRAN and subscriber information.
•  Subscribers receive PRAN cards (physical/digital).
•  Providing services such as tracking application status, changing details, and tracking contributions.
•  Maintaining proper recordkeeping and transparency for subscribers' retirement savings.

Conclusion

The Permanent Retirement Account Number (PRAN) is important for anyone using the National Pension System (NPS). It acts as a unique ID, making it easier to manage your retirement savings and track all transactions. Understanding the benefits of PRAN can enhance your retirement planning. 

Additionally, linking your PRAN to life insurance schemes from Shriram Life Insurance can enhance your financial security. If you're planning for retirement, look into flexible pension plans and the tax benefits they provide.