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Alankar Mishra

April 4, 2025

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What is Permanent Retirement Account Number (PRAN)

A Permanent Retirement Account Number (PRAN) is a 12-digit number allotted to individuals who are National Pension System (NPS) members. The PRAN is a lifetime account number used to monitor all pension-related activities, such as essential contributions and benefits. PRAN is helpful for seamless NPS account management irrespective of whether one is a government worker, private sector employee, or self-employed.

This blog explains everything you need to know about PRAN, its features and benefits, how to apply, and its role in ensuring a financially secure life after retirement.

What is PRAN?

PRAN is the Permanent Retirement Account Number used to identify a subscriber in the National Pension System in India. The Central Recordkeeper’s Agency issues a PRAN during enrollment in NPS. It serves as a unique identifier and remains unchanged throughout someone's life, offering convenience for accessing pension funds.

An NPS account can be further divided into two types of accounts:

Tier I account: An account that is required to be contributed into and also provides tax breaks.

Tier II account: An account that can be contributed voluntarily with no withdrawal restrictions; however, it does not offer tax benefits.

Features of PRAN

Unchangeable: PRAN is untouched for life, so there is no hassle in tracking pension contributions.

Easy Access: Clients can log in to their accounts through the NSDL-CRA or KFin Technologies portals and access them anytime.

Tax Relief: The available deductions for National Pension System accounts are under Section 80CCD(1) and 80CCD(1B) of the Income Tax Act.

Variety of Investments: Different investment alternatives, such as equity, corporate bonds, and government securities, can be chosen by clients.

Nomination Facility: This feature allows the subscriber to nominate a family member to receive benefits in the case of unfortunate events.

Portability: Employees with changing jobs or locations need not get a new PRAN as it stays the same throughout organizations.

Who Needs a PRAN?

A PRAN is essential for the following groups of people who partake in NPS:

‍Employees of the Government (both Central and State)

‍Employees of Private Companies (Corporate NPS members)

‍Business Owners

‍Non-resident Indians planning to invest in the NPS

‍Since the NPS is a voluntary pension system, anyone interested in an organized retirement saving program is eligible for a PRAN.

How to Apply for a PRAN?

You can apply for a PRAN through offline or online methods:

1. Online Application (eNPS Portal)

Follow these steps for an online PRAN application:

Step 1: Visit the official eNPS website (https://enps.nsdl.com or https://enps.kfintech.com).

Step 2: Select ‘Register’ and choose an appropriate subscriber category.

Step 3: Enter your Aadhaar or PAN details.

Step 4: Fill in your personal, professional, and bank details.

Step 5: Choose a fund manager and select your investment option.

Step 6: Upload the required documents (photograph, signature, etc.).

Step 7: Complete e-KYC verification via Aadhaar OTP.

Step 8: Make the initial contribution (Minimum ₹500 for Tier I and ₹250 for Tier II accounts).

Step 9: Upon successful registration, PRAN is generated and sent via email/SMS.

2. Offline Application (Through POPs)

PRAN can also be applied to offline sources such as points of presence (PoPs), financial banks and other institutions.

Collect the NPS Subscriber Registration Form (Form S1) from a registered PoP.

Enter the relevant information and provide the necessary documentation like KYC, PAN, Aadhaar, etc.

Send in the form with the first-time deposit.

Expect a PRAN card to be sent to your address once approved.

Documents Required for PRAN Application

Aadhaar Card or PAN Card (for KYC verification)

Passport-size photograph

Bank Account Details (for auto-debit contributions)

Signature on a blank white paper (for online applications)

How to Check PRAN Status?

All subscribers can conveniently check their PRAN status using the following:

NSDL-CRA/KFin Tech Portal: Entercknowledgment/reference number.

Customer Service: Contact the NPS helpline (Toll-free numbers: 1800-222-080 for NSDL, 1800-208-1516 for KFin Tech).

Registered PoPs: Check with your bank or financial institution where the application was filed.

How to Retrieve a Lost PRAN?

If your PRAN is lost, follow these steps:

Access the NSDL or KFin Tech NPS portal.

Input the mobile number or email ID linked to your account.

Confirm your identity through OTP or answer security questions.

Obtain your PRAN information or apply for a PRAN card reissue.

PRAN Card and Its Importance

A PRAN card is a tangible thing given to NPS subscribers with details of :

PRAN Number

Name of the Subscriber

Photo

Signature

Importance of PRAN Card:

Works as a primary identification proof for your NPS enrollment.

‍Aids in hassle-free claims, withdrawals, turnovers, and pensions.

‍Applicable when requesting a change in account information or account details modification.

How to Update PRAN Details?

Update your PRAN details like address, nominee, bank account and mobile numbers by:

Submitting a request at the PoP center.

Include the necessary documents for validation.

PRAN and Tax Benefits

PRAN holders get tax benefits as follows:

‍They receive a deduction of up to ₹1.5 lakh under the 80C limit in Section 80CCD(1).

‍Section 80CCD(1B) has an additional deduction of ₹50,000 beyond the 80C limit.

‍Employer contributions are not taxed under Section 80CCD(2) for a salaried employee.

‍These benefits make NPS one of India's most tax-efficient retirement investment options.

PRAN Withdrawal and Closure

Types of Withdrawals

Partial Withdrawal (This is capped at 25% of one’s contribution after 3 years, depending on purpose, which includes education, medical treatment, and home purchase).

Exit Before Retirement (This occurs after a decade, with 80 percent as an annuity and 20 percent as a lump sum payment with no further strings attached).

Retirement Withdrawals (Up to 60, 60 percent is given free of tax, working with the remaining 40, which goes toward annuity purchase.

Conclusion

The Permanent Retirement Account Number (PRAN) is crucial for proficiently operating NPS accounts and providing lifetime tracking of pensions, tax benefits, and investment options. PRAN becomes even more critical in the eyes of retirement planners because of its unique identification, portability, and accessibility features.

Knowing PRAN enables individuals to plan their retirement savings and pension funds more effectively, maximizing the scope of tax benefits and securing a financially stable future.

FAQs

1. What is PRAN?

The Permanent Retirement Account Number (PRAN) is a 12-digit unique number for an NPS subscriber that monitors their pension payments and profits.

2. Who is eligible to get a PRAN?

Eligibility applies to every person joining the National Pension System (NPS), including government officials, private organization employees, and independent business professionals.