Under NPS, Subscriber gets the alternative to open two accounts known as Tier I record and Tier II account. A Tier I account is obligatory to open with a specific end goal to join NPS. Tier II account is discretionary and can be opened point of time – at the instance of opening Tier I account or later.
|Tier I NPS Account
||Tier II NPS Account
|It is also known as Pension account
||It is known as investment account
|Withdrawal from this account is permitted after 10 years of account opening or attaining the age 60 years whichever comes early
||Withdrawal from this account can be done at any point of time as per Subscriber’s need
|Minimum annual contribution required for this account is Rs. 1000
In the event of death of the Subscriber, the whole Corpus is given to the nominee. On the off chance that Subscriber has not decided on any chosen one, the lawful beneficiary can assert the sum.
Fractional Withdrawal from the Scheme
In the whole life expectancy, 3 Partial/fractional withdrawals are permitted from Tier I account before achievement of at 60 years as demonstrated as follows
- First withdrawal will be following 10 years of record opening
- 2nd and third withdrawal would be following a hole of 5 years from the principal withdrawal
25% of the Contribution sum will be took into account particular purposes like Child marriage, higher education, Treatment of Critical sicknesses, purchasing home and so forth.
Investment in Annuity
As examined above, on exit from NPS or retirement some segment of Corpus must be put into Annuity plan to give month to month benefits a great many. Substances enlisted with PFRDA to give annuity benefit are
- HDFC Standard Life Insurance Company Limited
- ICICI Prudential Life Insurance Company Limited
- Star Union Dai-ichi Life Insurance Company Limited
- Life Insurance Corporation of India
- SBI Life Insurance Company Limited
Remarkable Features and Benefits of NPS
NPS offers extensive variety of advantages to people, making it an exceptional venture opportunity. A portion of the striking highlights of NPS are
- Portable Account – the NPS account (PRAN) continues as before regardless of progress of work or geography.
- Online Platform – On joining NPS, every Subscriber gets sign in ID and Password of NSDL framework for getting to NPS points of interest on the web.
- It offers decision of Service Providers, Funds, Investment Options, Pension Fund Manages, Annuity Service Provides and Annuity Plans to Subscribers
- It offers Subscribers flexibility to switch the Service Provider, Fund, Investment Option and Pension Fund Manager
- Flexible commitment system – Amount and recurrence of commitment can be changed according to the Subscriber necessity
- Prudently controlled - NPS is directed by PFRDA, with straightforward venture standards and normal observing and execution audit of store directors by NPS Trust
- Efficient grievance administration through CRA/PFRDA Website, Call Center, Email or Postal Mail
- Transparent venture standards – Investment Portfolio under every advantage class can be seen on particular Pension Fund Manager's site.
- Extremely Low Cost of tasks – with 0.01% as Fund Management Charge, NPS is one of the World's minimum cost speculation alternatives
NPS A native of India, regardless of whether inhabitant or non-occupant can join NPS, subject to the accompanying conditions:
- User ought to have age between 18 – 65 years as on the date of accommodation of his/her application to the Point of Presence (POP)/Point of Presence– Service Provider - Authorized branches of POP for NPS (POP-SP).
- User ought to consent to the Know Your Customer (KYC) standards as itemized in the Subscriber Registration Form.
The accompanying candidates can't join NPS:
- Un-released indebted
- Individuals of unsound personality
- Pre-existing record holders under NPS