Investors whose Aadhar card is linked to their bank account and mobile numbers can also apply online.They will receive a one-time password on their registered mobile numbers for validation.

Within minutes of submitting the online application, the investor will be allotted a PRAN (Permanent Retirement Account Number) which can then be used to invest in the scheme. This ease of investment will be especially useful for taxpayers who had stayed away from the NPS till now but want to join after the tax exemption announced in this year's budget. They can avail of the additional tax deduction of up to Rs 50,000 under Section 80CCD(1b) by investing in the NPS. Even those who don't have liquidity can join because the NSDL allows payment by credit card as well. However, credit and debit card users will have to shell out up to 1% of the investment as charges to the payment gateway .

Investors whose PAN and Aadhar are not linked to their bank accounts might miss the NPS bus this year. NSDL is receiving a large number of NPS applications processing can take up to 15-20 days.By the time one receives the PRAN, the 31 March deadline for investment would have passed.

For those investing in the NPS, choosing the right pension fund is critical because they will not be able to change for at least one year. The NPS funds of ICICI Prudential Pension Fund have been top performers in the past 3-year and 5-year periods. As the table shows, ultra-safe investors who put 60% in government bonds, 40% in corporate bonds and nothing in equity funds have gained the most in the past 3-5 years.