How To Open Pension Account in SBI | Modes to Open

If you’re looking to open a pension account with SBI, you have two main routes depending on your needs: If you’re retiring and need an account to receive your pension, SBI facilitates that too.


1. National Pension System (NPS) – Tier I (Pension Account)

This is a long-term retirement savings plan with tax benefits under Section 80C and 80CCD(1B), suitable for building a retirement corpus.

Eligibility

  • Indian citizens (resident, NRI, or OCI) aged between 18 and 70 years.

  • Comply with KYC norms; PAN and Aadhaar are mandatory.

Modes to Open

A. Online (through YONO SBI App or SBI NetBanking)

  • YONO SBI App Steps:

    1. Install and log into the YONO SBI App.

    2. Go to “Investments” → select NPS Account Opening.

    3. Choose between Tier I (mandatory) and Tier II (optional alongside Tier I).

    4. Fill in personal details (auto-filled plus your inputs), nominee details, upload a photo/selfie, and signature.

    5. Select your Pension Fund Manager (PFM) and investment preferences (active or auto-choice).

    6. Pay the minimum initial contribution (₹500 for Tier I; ₹1,000 for Tier II).

    7. Submit via OTP-based digital consent.

  • SBI NetBanking Steps (via onlinesbi.com):

    1. Log in and navigate to “Deposit & Investment” or “Payments/Transfers” → select NPS Contribution / Registration.

    2. Follow prompts to fill in details, upload documents, make payment.

    3. On completion, your Permanent Retirement Account Number (PRAN) will be generated.

B. Offline (via Branch as POP‑SP)

  • Visit an SBI branch authorized as a POP‑SP (Point of Presence – Service Provider).

  • Fill the registration form (available at branch or downloadable from CRA/NSDL site).

  • Submit KYC documents, photograph, signature, and initial contribution slip (NCIS).

  • Pay applicable branch charges (₹400 registration fee; 0.5% of contribution amount; ₹30–₹25,000 depending on amount)

  • The branch coordinates with CRA to generate PRAN.

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Key Features & Rules

ItemDetails
Minimum initial contribution₹500 for Tier I; ₹1,000 for Tier II
Tax BenefitsTier I—up to ₹1.5 lakh under 80C + ₹50,000 under 80CCD(1B)
Investment FlexibilityChoose fund managers and asset allocation; revise yearly
Withdrawals & ExitPost-60 yrs: 60% lump sum (tax-free), 40% annuity; partial withdrawals up to 25% after 3 yrs; corpus under some thresholds may be fully withdrawn

2. SBI Pension Account for Retirees (Regular Pension Deposit Account)

If you’re retiring and need an account to receive your pension, SBI facilitates that too.

Process for Pensioners

  • Retiring employees can open a Savings Bank Account (preferably with spouse too) at an SBI branch.

  • Provide Aadhaar, PAN, mobile number, and email (if available) to the Pension Sanctioning Authority.

  • If e‑PPO (electronic pension order) system is used, pension credit begins automatically. For printed PPOs, the paperwork is sent to the SBI’s Central Pension Processing Center (CPPC).

  • After retirement, you must submit your Life Certificate annually (digital submission via Jeevan Pramaan or PensionSeva SBI) to continue receiving pension.


Summary at a Glance

Your NeedRecommended RouteHighlights
Building a retirement fund (with tax benefit)Open NPS Tier I AccountOnline via YONO or SBI NetBanking, or visit branch
Just need an account to receive salary pensionOpen regular Savings Account via SBI branchProvide PPO and KYC, manage life certificate annually

Next Steps for You:

  • Want to invest for retirement with tax benefits? Go for NPS Tier I via YONO or NetBanking.

  • Looking to get your pension disbursed? Open an SBI savings account and furnish the paperwork.

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