Permanent Retirement Account Number - PRAN

PRAN number is used for all filings related to your NPS account. This includes filing for a tax rebate.
 

PRAN, short for Permanent Retirement Account Number, is a 12-digit unique identifier assigned to individuals who have enrolled in the National Pension Scheme (NPS). This number plays a crucial role in identifying and managing the retirement accounts of NPS participants. With PRAN, individuals can effectively contribute towards their retirement savings, track their pension funds, and avail various benefits offered by the NPS. It serves as a permanent and secure reference for all NPS-related transactions and ensures a streamlined retirement planning process. While professionals working in private companies can opt-in or out of PRAN, it is mandatory for central and some state government employees to get a PRAN number. Let us learn more about the PRAN number and see why it is essential.

Why is the PRAN number important?

A PRAN number is used to identify NPS accounts. NPS is a common pension scheme and is mandatory for government employees. Hence, a PRAN number is used in transactions related to NPS.

What is NPS?

The national pension system is a central government pension scheme aimed at helping citizens build a retirement fund. Initially introduced for government employees, NPS is now open to workers for all sectors, including the unorganised sector. Through NPS, you can invest a small amount of money every month to steadily build a sizable retirement fund.

There are two types of NPS accounts - Tier 1 and Tier 2. Tier 1 is the primary account with a lock-in period until you turn 60. Tier 2 is voluntary, and it does not come with tax benefits that a tier 1 account offers. Tier 1 and tier 2 accounts share the same PRAN number. The same is used for every filing related to NPS, including tax-rebate claims and even nomination claims.

PRAN card

If you have an NPS account and PRAN number ready, you can apply for a physical PRAN card. It can make information storage easy, and the details will be handy whenever you need them. If you have a PRAN number and want a physical card, the below steps will help you.

How to apply for a PRAN card?

You can apply for a PRAN card both online and offline. Let us look at the offline method first.

1. Offline method

You will have to visit an NPS point of presence (POP), usually a bank. The POPs are authorised to carry out several NPS-related activities, including receiving applications for PRAN cards. To the POP, you must submit the populated NPS application form - annexure S1. It is the same application form for subscribing to NPS and can be downloaded from the NPS website.

You must fill in details such as your personal information, professional information, nomination details, declaration etc. Once the application is submitted, the POP will forward it after inspection, and a PRAN card will be soon issued.

2. Online method

The online method of applying for a PRAN card is more straightforward. You can apply for the same when registering for NPS itself. This process can be done using both Aadhaar and PAN cards. If you use an Aadhaar card, your mobile number should be registered with Aadhaar to receive OTP.

All your information will be collected from your Aadhaar data itself. You may be asked to upload a copy of your signature in this method. You may change your photo in the application too.

If you decide to apply using a PAN card, your details will be sourced from your bank account. Banks may charge a nominal amount for the same. All the additional information must be manually uploaded, including photographs and signatures.

Can NRIs apply for a PRAN card?

Yes, NRIs can apply for a PRAN card through their NRI/NRO bank accounts. However, you may be charged for shipping if your address is outside India.

A PRAN number is an essential piece of information, and a PRAN card can help you keep the same handy. If you do not have a PRAN card yet, it is wise to get one soon.

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.