How to Change Nominee in NPS?

What Is a Nominee in NPS?

The subscriber nominates an individual to receive their NPS corpus in case the subscriber passes away. The subscriber is allowed to choose one or more individuals and clarify the percentage for each nominee. The member can ensure the following by nominating:

• Quicker claim settlement
• No legal issues or complications at the time of claim settlement
• Clear information about the beneficiary, as they have already declared

Is It Mandatory to Add a Nominee in NPS?

The members need to nominate a person when opening an NPS account. However, the nominee does not necessarily have to be a family member; they can be any individual. The system is programmed to require the details at the time of registration. But sometimes the members need to modify or update their nominee details due to the following reasons:

• Marriage
• Divorce
• Birth of a child
• Death of an existing nominee
• Change in financial planning
• Correction in personal details

Who Is Eligible to Change Nominee in NPS?

Active NPS subscribers can update their nominee details whenever needed. Both government and private employees can change their nominees by ensuring the following:

• They have an active account
• PRAN (Permanent Retirement Account Number) is valid
• Keeping the KYC details updated

Rules for Nomination in NPS

It becomes easier for the member to update the details if they know the rules. Here are the rules that are considered when updating the nominee details:

1. Maximum Number of Nominees

   The members are allowed to nominate up to 3 individuals.

2. Percentage Allocation

   The added nominees' total percentage should amount to 100%.

3. Minor Nominee

   If the chosen nominee is a minor, then the guardian's details are also required, along with their date of birth.

4. Change in Nomination

   The subscribers are allowed to change their nominees at any time they wish during the time they own the account.

5. Charges for Nominee Update

   When updating the nominee's details, a nominal fee for updation may apply on the CRA portal.

When Should You Change Your NPS Nominee?

Given below are a few situations when you can consider updating your NPS nominee:

• Marriage (adding spouse as nominee).
• Divorce (removing former spouse)
• Birth of a child
• Death of the current nominee
• Financial restructuring
• To update incorrect nominee details

How to Change Nominee in NPS Online

The members can update the details through the CRA (Central Recordkeeping Agency) website:

Step-by-Step Process

Step 1: Log in to CRA Portal

• Go to the CRA website
• Enter PRAN and password
• Complete OTP verification

Step 2: Navigate to Nomination Section

• Go to "Profile Settings" or "Update Details" section
• Select "Update Nomination Details" to update the details

Step 3: Enter New Nominee Details

The subscriber is required to provide the following details:

• Nominee name
• Date of birth
• Relationship
• Percentage share
• Guardian details (if nominee is a minor)

If you are adding multiple nominees, it should be noted that the total percentage equals 100%.

Step 4: Verify and Submit

• Review the details carefully before submitting
• Check and authenticate the details using the OTP or digital signature
• Pay the applicable charges, if any

Step 5: Confirmation

After submission, the members need to confirm the following details:

• A confirmation appears on the screen
• The updated nominee details are shown on your profile

Offline Process to Change Nominee

If the subscriber cannot access the services online, they can choose the offline process:

1. Firstly, download the nomination change form from the NPS website
2. Then fill in the updated nominee details
3. You need to attach the required ID documents
4. You need to submit the form through your Nodal Office or the Point of Presence (POP).
5. Pay the applicable charges after applying

Documents Required for Changing Nominee

To make the document updates, the subscribers do not need extensive documentation, as the requirements are quite minimal. Here is what you may need in certain cases:

• Self-attested ID proof of the nominee
• Proof of date of birth if they are a minor
• ID details of the guardian if the nominee is a minor
• PRAN details

These online updates are dependent on how well the subscriber checks the authenticity of the documents before applying.

Charges for Updating Nominee in NPS

It is important to know the charges for updating the nominee details in NPS. Usually, they depend on the following factors:

• The nature of the request and whether it is online or offline
• CRA service charges
• POP service charges in case of offline updates

What Happens If No Nominee Is Updated?

If the nominees are not updated, it can lead to legal complications in case of the sudden demise of the subscriber. Here is what is likely to happen:

• The legal heirs or the surviving members of the subscribers' family may need to submit succession certificates
• It can lead to delays in claim settlements
• Additional documentation may be required

Special Cases: Minor Nominee Rules

Here is what the subscriber needs to ensure if they are nominating a minor:

• Provide the guardian's name
• The guardian must be legally competent
• After 18, the nominated minor can directly claim the NPS benefits without a guardian

Difference Between Nominee and Legal Heir

Here are the differences you need to know between a nominee and a legal heir:

Nominee:

• It's the person chosen by the subscriber to inherit the funds of their NPS account
• The nominee will act as a custodian of the funds

Legal heir:

• It is chosen by the succession laws
• Can be a different person from the nominee

Key Things to Keep in Mind

Here are a few things to keep in mind before choosing a nominee:

• Checking and confirming the percentage allocation of the corpus
• Check and confirm the personal details of the nominee
• Keep the nominees informed about the nomination
• Ensure you update the details after important life events
• Keep your login details secure

Benefits of Updating Nominee in NPS

Here are the benefits of keeping the nominee's information updated in the NPS:

• Keeps the family financially secure
• Helps you avoid delays in claim processing
• Helps you avoid legal issues
• Simplifies documentation

Common Mistakes to Avoid

Below are a few mistakes the subscribers need to avoid when updating their nominee details in the NPS:

• Incorrect percentage distribution
• Forgetting to update the nominee details after marriage
• Not adding a guardian for the minor nominee
• Ignoring the confirmation message
• Using outdated contact details of the nominee

Conclusion

It is very important for the NPS members to update nominee details to ensure the retirement savings are managed and claimed responsibly. When the circumstances change in life, nomination ensures the claims are approved without delays, so your children and dependants can withdraw the funds without delays.

The members can update the details via the CRA website, and it becomes easier to modify the nominee details without physical documentation. The subscribers also need to check their nominee's information and update it whenever it is necessary to ensure smooth and easy settlement. If the members take out a few minutes to update their nominee information today, it can provide long-term peace of mind for them and their families.