NPS offers a range of investment options to employees, the scheme allows individuals to make decisions about where their pension fund is invested, permits limited withdrawal prior to retirement and helps salaried class in saving Income Tax
Your Pre filled application form is sent to your Email, download the application print, sign on it & submit in the address given.
Save your Income Tax with National Pension System (NPS) Enrollment, Just Fill the Below Application.
An additional Rs.50,000/- under section 80CCD (1B) per Assessment Year (Applicable from FY 2015-16/AY 2016-17).
As Per Govt Policy You are NOT Eligible to Enroll for National Pension System TIER-1 Account.
*NPS - National Pension System,
National Pension System
- Minimum Entry Age - 18Years
- Maximum Entry Age - 60 Years
- Minimum Investment - Rs. 6000 per Year
- Income Tax Exemption - Section- 80C- Rs. 1.5 lakh and Additional contribution under Sec-80CCD(1b)- Rs. 50,000
- Lock In - Till Retirement Age
- Charges - Applicable
- Capital Protection - No guarantee
- Rate of Return - No guaranteed Return,Based on Market Conditions
- Types of Accounts - Tier I and Tier II
- Maximum Investment - No Limit
- Eligibility - All Individuals
- Pre Closure - Not applicable, Conditions apply
- Nominee - Available
The National Pension System (NPS) was launched on 1st January, 2004 with the objective of providing retirement income to all the citizens. NPS aims to institute pension reforms and to inculcate the habit of saving for retirement amongst the citizens.
A citizen of India, whether resident or non-resident, subject to the following conditions:
You should be between 18 – 60 years of age as on the date of submission of his/her application to the POP/ POP-SP.
You should comply with the Know Your Customer (KYC) norms as detailed in the Subscriber Registration Form. All the documents required for KYC compliance need to be mandatorily submitted.
The following applicants cannot join:
Un-discharged insolvent: Individuals who are not granted an ‘order of discharge’ by a court.
Individuals of unsound mind: An individual is said to be of unsound mind for the purposes of making a contract if, at the time when he makes it, he is incapable of understanding it and of forming a rational judgment regarding its effect upon his/ her self-interest.
Pre-existing account holders under NPS.
National Pension System (NPS) is a defined contribution based retirement investment product. NPS offers two types of accounts to its subscribers, namely Tier I and Tier II.
Tier-I account:You shall contribute your savings for retirement into this non-withdrawable account.
This is your retirement account and you can claim tax benefits against the contributions made subject to the Income Tax rules in force.
Tier-II account: This is a voluntary savings facility. You will be free to withdraw your savings from this account whenever you wish.
This is a not a retirement account and you can’t claim any tax benefits against contributions to this account.
It is voluntary - NPS is open to every Indian citizen. You can choose the amount you want to set
Low Cost - NPS is considered to be world’s lowest cost pension scheme. Other handling and
administrative charges and fund management fee are lowest.
It is simple - all you have to do is to open an account with any one of the POPs and get a PRAN.
It is flexible - You can choose your own investment option and Pension Fund Manager or select Auto option to get better returns.
It is portable - You can operate your account from anywhere in the country and you can pay your contributions through any of the POP-SPs irrespective of the POP-SP branch with whom you are registered, even if you change your city, job etc.
Prudentially Regulated – Transparent investment norms, regular monitoring and performance review of Fund Managers by NPS Trust.
Under NPS, how your money is invested will depend upon your own choice. NPS offers you a number of fund managers and multiple investment options to choose from.
The NPS offers you two approaches to invest your money:
- Active choice - Individual Funds (Asset Class E, Asset Class C, and Asset Class G )
- Auto choice - Lifecycle Fund
Active choice - Individual Funds
You will have the option to actively decide as to how your NPS pension wealth is to be invested in the
following three options:
- Asset Class E -Investments in predominantly equity market instruments.
- Asset Class C-Investments in fixed income instruments other than Government securities.
- Asset Class G - Investments in Government securities.
- You can choose to invest your entire pension wealth in C or G asset classes and up to a maximum of 50% in equity (Asset class E).
Auto choice - Lifecycle Fund
- NPS offers an easy option for those participants who do not have the required knowledge to manage Their NPS investments.
- In this option, the investments will be made in a life-cycle fund. Here, the fraction of funds invested Across three asset classes will be determined by a pre-defined portfolio. At the lowest age of entry (18 Years), the auto choice will entail investment of 50% of pension wealth in “E” Class, 30% in “C” Class and 20% in “G” Class.
- These ratios of investment will remain fixed for all contributions until the participant Reaches the age of 36. From age 36 onwards, the weight in “E” and “C” asset class will decrease annually And the weight in “G” class will increase annually till it reaches 10% in “E”, 10% in “C” and 80% in “G” Class at age. Like the active choice, you must choose one PFM under the auto choice.
- In case you do not indicate any choice of PFMs, please note that it is deemed that you have consented to opting for the default option for the PFM as provided by PFRDA and whereby SBI Pension Funds Private Limited would become the default PFM.
Q: How and where can I open a NPS account?
A: NPS is distributed through authorized entities called Points of Presence (POP’s) and almost all the banks
(both private and public sector) are enrolled to act as Point of Presence (POP) under NPS apart from several other financial institutions.
To invest in NPS, you will be required to open a NPS account through the Point of Presence (POP) and who will assist the subscriber in opening the account including the filling up of necessary forms,
providing the information about NPS and any other relevant information in this regard.
Q: What are the benefits that the subscriber or his family can derive from the NPS at the time of exit from NPS?
A: Upon attainment of the age of 60 years:At least 40% of the accumulated pension wealth of the subscriber needs to be utilized for purchase of annuity providing for monthly pension to the subscriber and balance is paid as lump sum payment to the subscriber. However, the subscriber has the option to defer the lump sum withdrawal till the age of 70 years.
At any time before attaining the age of 60 years:At least 80% of the accumulated pension wealth of the subscriber needs to be utilized for purchase of annuity providing for monthly pension to the subscriber and the balance is paid as a lump sum payment to the subscriber.
Death of the subscriber:The entire accumulated pension wealth (100%) would be paid to the nominee/legal heir of the subscriber and there would not be any purchase of annuity/monthly pension.
Q: How can I pay my contributions under NPS?
A: The subscriber can contribute the amount through cash, local cheque, demand draft or Electronic
Clearing System (ECS) at his/her chosen POP-SP. However, for cash transactions exceeding Rs.50000/-one needs to submit the copy of the PAN card as per the Anti-Money laundering (AML) rules. Also, No outstation cheques shall be accepted.
Q: What are the Risks that the subscriber’s investments are exposed to?
A: There are no guarantees on investment. NPS is a defined contribution plan and the benefits would depend upon the amounts of contributions invested and the investment growth up to point of exit from
NPS.Credit Risk, Sovereign risk, Price-Risk or Interest-Rate Risk, Reinvestment Risk, Liquidity Risk, Prepayment Risk, Price fluctuations and Volatility, Liquidity Risks are some of the specific risks involved in capital market and debt markets.
Q: What are the Minimum contributions for the Tier I and Tier II?
A: Minimum Contribution (for Tier I)
1.Minimum Contribution at the time of account opening and for all subsequent transactions Rs. 500
2.Minimum Contribution per year Rs. 6000 excluding charges and taxes
3.Minimum no. of contributions in a year 01
Charges and Penalty for non-compliance of mandatory minimum contributions:
1.If the subscriber contributes less than Rs. 6,000 in a year, his/her account would be frozen and further transactions are allowed till the account is reactivated.
2.In order to reactivate the account, the subscriber would have to pay the minimum contributions, along with penalty of Rs.100 per year of default due for the period of dormancy.
3) A frozen account shall be closed when the account value falls to zero.
Minimum Contributions (For Tier-II):
1.Minimum contribution at the time of account opening - Rs.1000/- and for all subsequent transactions a minimum amount per contribution of Rs.250/-
2.Minimum Account Balance at the end of Financial Year - Rs.2000/- excluding charges and taxes
3.Minimum number of contributions in a year – 01
Charges and Penalty for non-compliance of mandatory minimum contributions:
Penalty of Rs. 100/- to be levied on the subscriber for not maintaining the minimum account balance and/or not making the minimum number of contributions
Q: What are the Fund Options in NPS?
A:The PFM will manage the following three separate schemes, each investing in a different asset class, being:
Asset class E: Investments in predominantly equity market instruments.
Asset Class C: Investments in fixed income instruments other than Government securities.
Asset Class G: Investments in Government securities
Q: Can I have more than one NPS account?
A:No, multiple NPS accounts for a single individual are not allowed and there is no necessity also as the NPS is fully portable across sectors and locations
Q: Can I switch from one investment scheme to another and/or Pension Fund Manager and if so, how?
A:Yes, NPS offers to its subscribers the option to change the scheme preference. Subscriber has option to realign his investment in asset class E, C and G based on age and future income requirement. Also, the subscriber has option to change the PFM and the investment option (active /auto choice).
Q: Can an NRI open an NPS account?
A:Yes, a NRI can open an NPS account. Contributions made by NRI are subject to regulatory requirements as prescribed by RBI and FEMA from time to time. If the subscriber's citizenship status changes, his/ her NPS account would be closed.
Q: How are the funds contributed by the subscribers managed under NPS?
A:The funds contributed by the Subscribers are invested by the PFRDA registered Pension Fund Managers (PFM’s) as per the investment guidelines provided by PFRDA.At present there are 8 Pension Fund Managers (PFM’s) who manage the subscriber funds at the option of the subscriber.
At present, Subscriber has option to select any one of the following 8 pension funds:
1.ICICI Prudential Pension Fund
2.LIC Pension Fund
3.Kotak Mahindra Pension Fund
4.Reliance Capital Pension Fund
5.SBI Pension Fund
6.UTI Retirement Solutions Pension Fund LIC Pension Fund
7.HDFC Pension Management Company
8.DSP Blackrock Pension Fund Managers Since registration of PFMs is an ongoing process, this list will be updated from time to time.
Q: What are the charges in NPS?
A: All the charges associated to Tier I account including Annual PRA Maintenance charge are paid by the employer. In case of Tier II account, activation charge and transaction charges are paid by the subscriber.
The POP charges and the CRA charges are given in the table below:
*Service tax and other levies, as applicable, will be levied as per the existing tax laws.
||Method of Deduction
PRA Opening charges
Annual PRA Maintenance cost per account
Charge per transaction
Through cancellation of units at the end of each quarter.
(Maximum Permissible charge for each subscriber
Initial subscriber registration
Initial contribution upload
Any subsequent transaction involving contribution upload
Any other transaction not involving a contribution from subscriber
0.25% of the initial contribution amount from subscriber subject to a minimum of Rs.20 and a maximum of Rs.25,000/-
0.25% of the amount subscribed by the NPSsubscriber, subject to minimum of Rs.20/- and a maximum of Rs.25000/-.
Through cancellation of units at the end of each quarter.
Tax benefit to employee:
Individuals who are employed and contributing to NPS would enjoy tax benefits on their own
contributions as well as their employer’s contribution as under: -
- (a)Employee’s own contribution - Eligible for tax deduction up to 10% of Salary (Basic + DA) under Section 80 CCD(1) within the overall ceiling of Rs. 1.5 lacs under Sec 80 CCE.
- (b)Employer’s contribution-The employee is eligible for tax deduction up to 10% of Salary (Basic + DA) contributed by employer under Sec 80 CCC(2) over and above the limit of Rs. 1.5 lacs provided under Sec 80 CCE.
Tax benefit for self-employed:
- Eligible for tax deduction up to 10 % of gross income under Sec 80 C with in the overall ceiling of Rs. 1.5 lacs under Sec 80 C and Additional contribution under Sec-80CCD(1b)- Rs. 50,000.
- Tax benefits would be applicable as per the Income Tax Act, 1961 as amended from time to time.
Passport, PAN Card, Ration Card, Voter card, Aadhar Card, Driving license, Bank Pass book with photograph, Identity card issued by Central/State government and its Departments, Photo Credit card.
Passport, Ration Card, Voter card, Aadhar Card, Driving license, Bank Pass book with photograph, Identity card issued by Central/State government and its Departments, Latest Telephone bill, Latest Electricity/Water Bill, Latest property/house tax receipt etc.
Passport, PAN Card, Ration Card, Voter card, Aadhar Card, Driving license