How to Link Aadhar Card with EPF (Employee Provident Fund) and NPS (National Pension Scheme)?

The Employee Provident Fund is a plan that helps private sector employees to save a small amount out of their monthly salary, which will be awarded to them in the time of the retirement. Savings made under EPF are all tax-free. By connecting your Aadhaar Number to your EPF accounts, it is going to get easier to check all the specifics of the account holders.

For your kind information let us tell you You can connect yours with EPF account using online and offline methods.

Link Aadhaar number with EPF account Online

By employing the EPFO online facility, you can connect your Aadhaar into EPF using readily.

  • In the first step following the link to link Aadhaar into EPF:
  • Enter your UAN number, mobile number connected using the UAN and then click on Generate OTP.
  • Type from the OTP you’ve obtained and chosen the gender.
  • The following step involves you placing in your Aadhaar Number and then choose the “Aadhaar Verification” method. You have two alternatives to pick from: Utilizing Mobile/Email established OTP or Using Biometric.
  • Pick the “Use Mobile/Email based verification and you’ll find an OTP to fill out the verification.

What are the benefits of connecting Aadhaar with EPF accounts?

The Employee Provident Fund Organization, which has more than 5 crore accounts, has requested its members to link their EPF account with Aadhaar to enable easy verification of details.

Listed below are few of the benefits of linking Aadhaar Number with your EPF accounts:

  • So, now that you know your Aadhaar card comprises all of the real information, it gets simpler to verify all your information if you link your Aadhaar with EPF account as it includes all your information including biometrics and demographic details that includes you retina scan and forget detection.
  • There are hardly any odds of mistakes and discrepancies in the information when you link your Aadhaar with your EPF and UAN, along with your information is consistent with your Aadhaar card information.
  • Having Aadhaar linked to your EPF accounts, there will be fewer chances of having a copy account. Possessing an Aadhaar card itself is proof of being an Indian citizen. Therefore, when the Aadhaar details are made, it means an employee can only have a single EPF or UAN account.

National Pension Scheme Account

In case if you don’t know then let me tell you National Pension Scheme (NPS) is a government-sponsored pension scheme which was launched in January 2004 for government employees only.

It was opened to all sections in 2009. A subscriber of national pension scheme can contribute regularly in a pension account during her working life, withdraw a part of the corpus in a lump sum and use the remaining corpus to buy an annuity to secure a regular income after retirement.

It’s a government-approved pension scheme. National Pension Scheme (NPS), a government-sponsored pension scheme, was launched in January 2004 for government employees. It was opened to all sections in 2009. A subscriber can contribute regularly in a pension account during her working life, withdraw a part of the corpus in a lump sum and use the remaining corpus to buy an annuity to secure a regular income after retirement.

Steps to Link Aadhar Number with National Pension Scheme Account

Here are the steps you need to follow in case of linking aadhar card with NPS account.

  • The first step is to log in using your NPS account.
  • Then on the login dashboard click on “Update Details” option, and select a sub-menu option that says, “Update Aadhaar/Address Details”.
  • Now, select the option shown as “Add/Update Aadhaar Number”
  • The next step is the submission of the Aadhaar Number
  • At this point, you will receive an OTP (One Time Password) from UIDAI on your registered mobile number within a few minutes
  • Once the OTP authentication is complete, the PRAN (Permanent Retirement Account Number) linked to the NPS account that was used to login and the Aadhaar number provided will be linked.

Benefits of having a National Pension Scheme Account

  • Flexible: NPS offers a range of investment options and choice of Monetary Funding (PFs) for planning the growth of the investments in a sensible manner and monitors the increase of the pension corpus. Subscribers can switch over from one investment option to the next from one fund manager to the following.
  • Straightforward: Opening an account together with NPS offers a more Permanent Retirement Account Number (PRAN), and it is a special number plus it remains with the contributor during his life. The scheme is organized into two tiers:
    • Tier-I account: Here is actually the non-withdrawal lasting retirement account into which the regular gifts made by the subscriber are credited and invested as per the portfolio/fund director chosen of the contributor.
    • Tier-II accounts: It is a voluntary withdrawable account which can be allowed only if there’s a dynamic Tier I consideration in the name of the contributor. The distributions are allowed by the report in accordance with the needs of the contributor as when demanded.
  • Risk Assessment: Presently, there’s a 50% limit on equity exposure for the National Pension Scheme. This stabilizes the risk-return equation in the interest of investors, so the corpus is marginally safe from the equity market volatility. The earning capacity of the NPS is higher when compared to other fixed income schemes. The PFRDA has proposed to increase the limit on equity exposure to 75 percent.
  • Equity Allocation Rules: The NPS invests in Various schemes, and the Scheme E of this NPS invests in fairness. You can allocate no more than 50 percent of one’s investment to stocks. There are two alternatives to invest in — auto choice or active option. The auto choice determines the hazard profile of one’s investments as per your age. For instance, the older you are, the more stable and less insecure your investments. The active choice enables you to decide the scheme and to split your investments.

So now We hope you can able to understand a complete process to link your Aadhar number with EPF and NPS accounts.

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