NSE: 

The National Pension System (NPS) is a 'defined contribution based pension scheme' launched by Govt. Of India and regulated by Pension Fund Regulatory Authority of India (PFRDA). NPS seeks to inculcate the habit of saving for retirement amongst all citizens. We are also registered under PFRDA to act as a POP for NPS. Presently Bank has designated 1069 Branches to carry out NPS activity.

 

Flexible

 

NPS offers the following flexibilities in investment:

 

a. Active Choice

Subscriber has the option to actively decide how the pension wealth is to be invested across the three Asset Classes; Equity, Corporate Debt Instruments and Government Securities. Contribution in Asset  Class Equity is restricted to 50% of total contribution.

 

b. Auto Choice  

The ratio of Fund invested across the three asset classes will change as per the age of subscriber. This is opted for those who neither have the required knowledge nor the time to manage their investment.

 

c. Pension Fund Managers

 

A variety of fund managers are available and the investor  can choose from among them:

  • Kotak Mahindra Pension Fund Ltd.
  • LIC Pension Fund Ltd.
  • Reliance Capital Pension Fund Ltd.
  • SBI Pension Funds Pvt. Ltd
  • UTI Retirement Solutions Ltd
  • ICICI Prudential Pension Fund Management Co. Ltd.
  • HDFC Pension Management Co. Ltd

d. Annuity Service Providers :Annuity Services are financial services which offer a monthly/quarterly/annual pension at a guaranteed rate for the period chosen for a given value.

  • Life Insurance Corporation of India
  • SBI Life Insurance Co. Ltd.
  • ICICI Prudential Life Insurance Co. Ltd.
  • HDFC Standard Life Insurance Co Ltd
  • Bajaj Allianz Life Insurance Co. Ltd.
  • Reliance Life Insurance Co. Ltd.
  • Star Union Dai-ichi Life Insurance Co. Ltd.

Simple

 

When you apply for a NPS,  you will be provided  with a unique Permanent Retirement Account Number (PRAN)  and all the investments for NPS have to be done quoting the PRAN number.  The scheme is structured into two tiers:

Tier-I account

This is the non-withdrawable permanent retirement account into which the accumulations are deposited and invested as per the option of the subscriber.

  • Minimum contribution at the time of account opening -Rs.500/-
  • Minimum amount per contribution - Rs. 500/-
  • Minimum Account Balance at the end of FY - Rs. 6000/-
  • Minimum number of contributions in a year - 1

Tier-II account

This is a voluntary withdrawable 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.

  • Minimum contribution at the time of account opening -Rs.1000/
  • Minimum amount per contribution - Rs. 250/-
  • Minimum Account Balance at the end of FY-Rs. 2000/-
  • Minimum number of contributions in a year - 1

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

 

NPS is regulated by PFRDA, with transparent investment norms, regular monitoring and performance review of fund managers by NPS Trust

 

 

Tax benefits*

 

For Salaried

  • Employee's own contribution - Up to 10% of Salary (Basic + DA) is deductable from the total income under Section 80 CCD(1) within the overall ceiling of Rs. 1.5 lacs under Sec 80 CCE.
  • (b) Employer's contribution –Up to 10% of Salary (Basic + DA) of the employee is deductible from the his/her total income under Sec 80 CCC(2) over and above the limit of Rs. 1.5 lacs provided under Sec 80 CCE.
  • An additional tax deduction on investment up to Rs. 50,000 in NPS has been introduced under sub-section 80CCD (1B). This is over and above the limit of deduction mentioned under sec 80 CCE. This is an exclusive tax deduction available only for investment in NPS for all citizens of India and not available for any other investment.

For Self-employed

  • Eligible for tax deduction up to 10 % of gross income under Sec 80 CCD (1) within the overall ceiling of Rs. 1.5 lacs under Sec 80 CCE.

*Tax benefits would be applicable as per the Income Tax Act, 1961 as amended from time to time. 

 

All Citizens Model

  • Available to all citizens of India including NRI's within the age group of 18-60.

  • Submit the Subscriber registration form with KYC documents (as mentioned in the Form) and the NPS Contribution Instruction Slip (NCIS) with minimum contribution amount to any of our authorized branch.

NPS-Corporate Sector Model 

  • Provides NPS benefits to the employees of corporate entities.
  • Corporate would need to sign MOU with any of our authorized branches, submit Corporate Registration Form. After Corporate Registration, the employees will come under NPS within the purview of employer-employee relationship. 
  • The subscribers can submit Subscriber Registration Form. No initial contribution is to be submitted by subscribers under the Corporate plan along with the application.

Exit from NPS upon attaining the age of Normal superannuation (for govt. employees only) or upon attaining the age of 60 years (for all subscribers other than govt. employees)

At least 40% of the accumulated pension wealth of the subscriber needs to be mandatorily utilized for purchase of an annuity providing for the monthly pension of the subscriber and the balance is paid as a lump sum payment to the subscriber.

 

Exit from NPS before attaining the age of Normal superannuation (for govt. employees only) or before attaining the age of 60 years (for all subscribers other than govt. employees)

At least 80% of the accumulated pension wealth of the subscriber needs to be utilized for purchase of an annuity providing for the monthly pension of the subscriber and the balance is paid as a lump sum payment to the subscriber.

 

Upon Death

The entire accumulated pension wealth (100%) would be paid to the nominee / legal heir of the subscriber.

Please check the Pension calculator to calculate your pension - Click here.

 

 

Disclaimer: The calculation performed by Pension calculator is based on the information you provided and is for illustrative purposes only. The figures are indicative only and not on actual basis. 

How to Subscribe for NPS

 

Submit the Subscriber registration Form with KYC documents (as mentioned in the Form) and the NPS Contribution Instruction Slip (NCIS) and minimum contribution amount to any of our designated branches.

 

To find the list of designated branches where you can submit the NPS applications, please click here.

 

Application Form and Contribution Slip can be downloaded by clicking the links below.

 

Title File
NCIS-Contribution Form Download
List of designated branches for National Pension System Download
Registration of Subscriber-UOS-S1 Download
Subscriber Registration Form - NRI (SRF_NRI) Download
Form for Registration of Corporates (CHO-1) Download