How does NPS work?

Upon successful enrolment, a Permanent Retirement Account Number (PRAN) is allotted to the subscriber under NPS. 

Once the PRAN is generated, an email alert, as well as an SMS alert, is sent to the registered email ID and mobile number of the subscriber. 

The subscriber contributes periodically and regularly towards NPS during the working life to create the corpus for retirement. On retirement or exit from the scheme, the corpus is made available to the subscriber with the mandate that some portion of the corpus be invested into Annuity to provide a monthly pension post-retirement or when existing the scheme.