NPS helps you manage your savings today, to secure your future. Pave the road to your second innings with easy saving plans.
NPS helps you manage your savings today, to secure your future. Pave the road to your second innings with easy saving plans.
At 30 years of age, Nakul invests ₹10,000 monthly in NPS for a secure retirement and tax benefits, aiming for life goals.
*Assuming growth rate at 10%
Joining NPS is made very easy and by following 3 simple steps you can start your retirement planning. Just follow these three steps below.
Here are some frequently asked questions about Retail NPS
Any individual, whether Indian resident or non–resident can join the Scheme subject to following conditions:
Yes. NRIs and OCIs are also allowed to join NPS.
One can have only one active PRAN at a time.
Tier II NPS account is optional. Subscriber can open Tier II NPS account post opening their Tier I account.
No. Individual cannot apply for only Tier II NPS Account, it can be opened while creating NPS account or later once Tier I is opened.
Yes. A Subscriber needs to submit the request, along with the Service Charge of Rs. 30 plus GST, to us for initiating the modification to their PoP. Alternatively, they can also update their profile using the App provided by CRA.
Yes. A Subscriber can place request for issuance of duplicate PRAN Card. Charges will be deducted by CRA for issuing duplicate PRAN Card.
Yes. Monthly statement, containing details of the unit holdings, is issued by CRA to Subscriber’s registered email address.
Subscriber can view / print the SOTs by logging into CRA website using their PRAN and password.
The Subscriber must have the following scanned documents readily available to start the online NPS registration process:
Subscribers can start the process by visiting https://www.dsppension.com/
Services like profile modification, changes in investment portfolio, changes in sector, etc. are called non–financial transactions.
Subscriber needs to pay Rs.30 + GST by Cheque at the time of submitting request for process any Non–Financial transactions.
Subscriber can contribute towards NPS directly using the NPS app provided by CRA.
If a Subscriber opts for Tier I account only, then they need to contribute a minimum of Rs.500 at that time. However, if the Subscriber opts for Tier I + Tier II, then they needs to deposit a minimum of Rs.1500/-plus GST.
Subscriber has the flexibility to contribute anytime they want. There are no restrictions on the number of times one can invest.
Yes, NPS offers this flexibility. One can decide the contribution amount as per their planning.
Yes, you can start your SIP by opting for D-Remit, the NPS app by CRA.
NPS offers 4 funds to subscriber - Equity (E), Corporate Bonds (C) Government Securities (G) and Alternate Investment (A).
NPS restricts investment towards Equity to up to 75% of contribution amount for Tier I. However, a subscriber can invest up to 100% in Corporate Bonds or Government Debt Funds. Alternate Investment fund option is there for Tier I NPS accounts only and with a restriction of 5%. You can invest 100% towards Equities Funds in Tier II.
Yes. The Subscriber can exercise this option of changing their scheme preference four times in a financial year.
In case of a situation where your PRAN is frozen due to contribution of less than Rs.1,000 in a year, then you need to write to your PoP to activate your PRAN so that you can make the contribution. Once the PRAN is active, subscriber needs to contribute a minimum of Rs.500.
Tier II does not freeze as it is voluntary account. However, if Tier I account is frozen, then further investments in Tier II will not be accepted.
Withdrawal from Tier I NPS account would be permitted for specific purposes like child’s marriage, higher education, treatment of critical illnesses, etc. One can only withdraw from the total voluntary contribution done by them.
Subscriber can initiate the request online using login ID and Password provided by CRA to access NPS details.
A subscriber can pre-exit from NPS after 5-years of account opening or anytime after the age of 60.
Primary objective of Tier I NPS Account is to help the subscriber create a Corpus which can be used at the time of retirement to buy pension for the Subscriber.
| Exit before 60-years | Exit post 60-Years |
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In case of exit from NPS at retirement age, the Subscriber can choose to defer the annuity / withdrawal as per the prevailing rules.
However, in case of pre–mature exit from NPS (before attaining the age of retirement), the Subscriber does not have option to defer.
The fund would continue to remain invested as per the choice of the subscriber as these were at the time of vesting.
In case of pre-mature exit, the Subscriber needs to invest in Annuity immediately. Depending on the Annuity Plan one has invested in, annuity would start.
Subscriber can choose the ASP at the time of exit. Once the pension starts, then the subscriber cannot change the ASP.
Yes. A Subscriber can use 100% of corpus to buy annuity.
It will depend on the kind of annuity plan opted by the Subscriber. It is important for subscribers to understand the rules and options available to them under various annuity options.
In case of death of the Subscriber, nominee can claim the entire corpus of the subscriber.
The nominee needs to submit a withdrawal request to the PoP. After the request is processed, a Cheque is issued to the nominee.
No. Death proceeds in the hands of Nominee is tax free.