National Pension System

How To Subscribe

You can enrol for NPS online in paperless process through our website from the convenience of your home / office. The prime objective of the scheme is to provide all citizens of India with an attractive long-term savings avenue to plan for retirement through safe and reasonable market-based returns. The account can be opened by all Indian Citizens between 18 to 70 Years.

Steps for online account opening

• You can enrol for NPS by clicking on 'Invest Now' option under NPS (National Pension System)You will get redirect to Protean eGov for online form, which needs to be filled with mandatory fields.

• Acknowledgement Id for your registration (account opening) will be generated. There will be provision to complete the registration (account opening form) later, but within 15 days, based on acknowledgement number search.

• Modes of KYC verification

  • Pan based – RBL Bank will verify KYC on the basis of details maintained in your account with Bank. (Hence details being input in NPS should be exactly as per bank account).

• You need to share detail like Bank details, scheme details, nominee details etc.

• You need to upload photograph, specimen signature, cancelled cheque / bank statement / passbook copy and PAN copy as per file size permissible.

• You need to make initial contribution of min INR 500. You will be directed to online payment platform wherein you will complete the payment through NetBanking or payment gateway.

• On successful payment, 12-digit PRAN will be allotted to you and PDF form will be generated based on data given.

• PRAN will be communicated to you via registered email and SMS.

• E-Sign/OTP – You will have to complete online e-sign or OTP based confirmation once registration process is completed. This is to avoid physical submission of registration form.

Steps for online account contribution

• You can start "Contribute in Exiting NPS A/C:" by clicking on 'Invest Now' option under NPS (National Pension System).

• Contribution existing NPS A/c option. Subscriber will be redirected to the disclaimer prior to land on Protean eGov page. Once Subscriber click on Ok option of disclaimer then only subscriber will be able to land/ View the Protean eGov login page. Minimum Contribution of INR 500 plus charges.

• Subscriber will enter the PRAN no. and generate the OTP to login in Protean eGov contribution link.

• OTP will be triggered by Protean eGov on Subscriber’s registered Email ID and mobile no.

• Subscriber will enter the OTP for validation. Post validation, subscriber to choose the payment mode. i.e. Net banking for the proceed the Subscription.

• Subscriber will choose any of the above mentioned payment mode and complete the subscription in Protean eGov site.

Steps for online account SIP

• You can start "Contribute in Exiting NPS A/C:" by clicking on 'Invest Now' option under NPS (National Pension System).

• Set SIP NPS A/c option. Subscriber will be redirected to the disclaimer prior to land on Protean eGov page. Once Subscriber click on Ok option of disclaimer then only subscriber will be able to land/ View the Protean eGov login page. Minimum Contribution of Rs.500 plus charges.

• Subscribe need to enter PRAN no. and generate the OTP to login in Protean eGov contribution link.

• OTP will be triggered by Protean eGov on Subscriber’s registered Email ID and mobile no.

• Once the subscriber is validated, then Protean eGov Subscription page will get processed further.

• Subscriber will choose the SIP Month and Amount and proceed further for the payment.

• On Protean eGov SIP page, Subscriber to choose the payment mode. i.e., Net banking/ CC/ DC/ Wallet for the proceeds the Subscription.

*Cancelled cheque is mandatory for opening Tier-II A/C

Flexibility

Flexibility to choose between 8 Fund Managers:

• UTI Retirement Solutions Ltd.

• SBI Pension Funds Pvt. Ltd.

• Reliance Capital Pension Fund Ltd.

• LIC Pension Fund Ltd.

• Kotak Mahindra Pension Fund Ltd.

• HDFC Pension Management Co. Ltd.

• ICICI Prudential Pension Fund Management Co. Ltd.

• Birla Sunlife Insurance Co. Ltd.

* One Fund Manager must compulsorily be selected.

A subscriber must choose between Active Choice and Auto Choice for distribution of his contribution. The maximum investment allowed in equity is 50%. The returns are totally market related.

• Active Choice: Under this option, subscriber is free to allocate the investments between three asset classes- corporate, gilt and equity. Maximum allocation to asset class E is restricted to 50%.

• Auto Choice: Under this option, investment across three funds is made as per the pre-defined pattern known as life - cycle fund. It depends on the age of the person.

Simple

Opening an account with NPS provides a Permanent Retirement Account Number (PRAN), which is a unique number and it remains with the subscriber throughout his lifetime. The scheme is structured into two tiers:

• Tier I account: This is the non-withdrawal Permanent Retirement Account in which the accumulations are deposited and invested as per the option of the subscriber.

• Tier II account: This is a voluntary withdrawal account which is allowed only when there is an active Tier I account in the name of the subscriber. The withdrawals are permitted from this account as per the needs of the subscriber as and when claimed.

Portable

NPS provides seamless portability across jobs and across locations, unlike all current pension plans, including that of the EPFO. It would provide hassle-free arrangement for the individual subscribers.

Regulated & Low Cost

• NPS is regulated by PFRDA, with transparent investment norms, regular monitoring and performance review of fund managers by NPS Trust. It is also considered to be the world’s lowest cost pension scheme. Administrative charges and fund management fee are also the lowest.

Tax Benefit to Employee

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 INR 150,000 under Sec 80 CCE.

• Investment of up to INR 50,000 is eligible for tax deduction over and above INR 1.5 lakh limit of 80C limit under sec 80CCD (1B).

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) without any upper limit on amount.

Tax benefits would be applicable as per the Income Tax Act, 1961 as amended from time to time. Please consult your tax advisor.

Tax benefit for self-employed

• Eligible for tax deduction up to 10 % of gross income under Sec 80 CCD (1) within the overall ceiling of INR 1,50,000 under Sec 80 CCE.

• Investment of up to INR 50,000 is eligible for tax deduction over and above INR 1,50,000 limit of 80C limit under sec 80CCD (1B).

Tax benefits would be applicable as per the Income Tax Act, 1961 as amended from time to time. Please consult your tax advisor.

NPS offers Indian citizens a low cost option for planning their retirement. NPS perhaps is the world’s lowest cost retirement savings product. Following are the charges under NPS:

The subscriber can contribute the amount through cash (transactions above INR 50,000 requires PAN card copy of subscriber), local cheque, demand draft or Electronic Clearing System (ECS) at his/her chosen POP-SP. Also, No outstation cheques shall be accepted.

Minimum Contributions (For Tier-I)

• At the time of account opening and for all subsequent transactions -  INR 500

• Per year -INR 6,000 excluding charges and taxes (in case of minimum amount not contributed, account gets frozen with INR 100 penalty for activation)

• Minimum number of contributions in a year - 01 Penalty of INR 100 to be levied on the subscriber for not maintaining the minimum account balance and/or not making the minimum number of contributions

Minimum Contributions (For Tier-II)

• At the time of account opening - INR 500 and for all subsequent transactions a minimum amount per contribution of INR 500 plus charges

• Minimum Account Balance at the end of Financial Year - INR 2,000 excluding charges and taxes

• Minimum number of contributions in a year - 01

FAQs published by PFRDA

• Exit from NPS for All Citizen Model

• Exit from NPS for CG and CAB sector

• Exit from NPS for Corporate Sector

• Exit from NPS - Lite / Swavalamban Scheme

• Exit from NPS for SG and SAB sector

• Exit from NPS for All Citizen Model - Hindi

• Exit from NPS for CG and CAB sector - Hindi

• Exit from NPS for Corporate Sector - Hindi

• Exit from NPS - Lite / Swavalamban Scheme - Hindi

• Exit from NPS for SG and SAB sector - Hindi