NPS – National Pension Scheme
NPS was introduced in 2004, The National Pension System (NPS) was earlier available for only Central Government employees. However, Now it Govt. Of India made National Pension Scheme available for all Indian citizens Since 2009. This scheme is regulated by the Pension Fund Regulatory and Development Authority (PFRDA).
For more information, Check out related articles National Pension Scheme Account
How to open a NPS account
- Online Process:
You must follow the steps mentioned below steps very carefully to open a National Pension Scheme account online.
- Open eNPS website (https://enps.nsdl.com/eNPS/NationalPensionSystem.html) to register online.
- The following details must be linked with the National Pension Scheme account 1. Your mobile number, 2. Aadhaar number, and 3. Permanent Account Number (PAN)
- A OTP will be sent to register mobile number to validate user data.
- Upon Validation of OTP registration process will be completed and you will receive a Permanent Retirement Account Number or PRAN. This PRAN will be used in the future to log in to your profile.
- Offline Process:
To open an NPS account offline. You will be required to follow the Process mentioned below
- Make a Visit the nearest Point of Presence (PoP) centre, a bank, or a post office to open Your NPS account.
- All you will have to submit is your Know Your Customer (KYC) documents along with a completely filled and signed application form.
- Once you have made your first investment successfully, the PoP centre will send you a PRAN.
- The PRAN is protected with a password and it will be present in the welcome kit for you to access. The PRAN and password will be required to operate your account.
- A one-time registration fee of Rs.125 is charged to Open your National Pension Scheme account.
NPS Withdrawal Process
- Early withdrawal and Exit rule of NPS: It is Good that subscribers make investments continues towards the scheme until they reach an age of 60 years as NPS is a pension scheme.
Any which ways, under some certain circumstances, subscribers are eligible to withdraw up to 25% of the invested amount if they have invested in the account for 3 years in stright.
Different cases under which early withdrawal is allowed as below:
- In case the children of the subscriber are getting married
- For higher studies
- For buying or building a house
- In the case of medical treatment of the subscriber or his/her family members
With a minimum 5 years Gap between Each NPS Withdrawal, a maximum of 3 times a subscriber can withdraw. The early NPS withdrawal process is applicable for Tier-I account only. Entire investment can be withdrawn for Tire – 2 Accounts. Withdrawal after attaining the age of 60: It is mandatory that subscribers maintain at least 40% of the investment amount in order to receive a monthly pension. As the entire invested amount made towards the scheme cannot be withdrawn to the bank at once the subscriber touches the age of 60 years old. Subscribers of NSP with receive Pension from an insurance firm that is registered under the PFRDA. The remaining balance of 60% can be withdrawn as Tax-free amount