NPS Accounts
Under NPS, Subscriber gets the option to open two accounts known as Tier I account and Tier II account. A Tier I account is mandatory to open in order to join NPS. Tier II account is optional and can be opened at any point of time – at the time of opening Tier I account or later.
Difference between Tier I and Tier II accounts are as mentioned below
| 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 |
NA |
Investment of Funds under NPS
Subscriber gets the choice of 4 funds under NPS – Equity (E), Corporate Bonds (C), Government Securities (G) and Alternate Investment Funds (A) in active choice. These are also known as E, C, G and A respectively.
Subscriber gets the freedom to decide her own asset mix restricting the exposure to Equity to 75% of Contribution amount. It is called Active Choice Investment option. Subscriber also gets an option of Life Cycle Fund is also known as Auto Choice. Under this mode, investment across three funds is done as per the age of the employee as shown in below chart
LC 75 – Aggressive Life Cycle Fund
| Age | Asset Class E | Asset Class C | Asset Class G |
|---|
| Up to 35 years | 75 | 10 | 15 |
| 36 years | 71 | 11 | 18 |
| 37 years | 67 | 12 | 21 |
| 38 years | 63 | 13 | 24 |
| 39 years | 59 | 14 | 27 |
| 40 years | 55 | 15 | 30 |
| 41 years | 51 | 16 | 33 |
| 42 years | 47 | 17 | 36 |
| 43 years | 43 | 18 | 39 |
| 44 years | 39 | 19 | 42 |
| 45 years | 35 | 20 | 45 |
| 46 years | 32 | 20 | 48 |
| 47 years | 29 | 20 | 51 |
| 48 years | 26 | 20 | 54 |
| 49 years | 23 | 20 | 57 |
| 50 years | 20 | 20 | 60 |
| 51 years | 19 | 18 | 63 |
| 52 years | 18 | 16 | 66 |
| 53 years | 17 | 14 | 69 |
| 54 years | 16 | 12 | 72 |
| 55 years & above | 15 | 10 | 75 |
LC 50 – Moderate Life Cycle Fund
| Age | Asset Class E | Asset Class C | Asset Class G |
|---|
| Up to 35 years | 50 | 30 | 20 |
| 36 years | 48 | 29 | 23 |
| 37 years | 46 | 28 | 26 |
| 38 years | 44 | 27 | 29 |
| 39 years | 42 | 26 | 32 |
| 40 years | 40 | 25 | 35 |
| 41 years | 38 | 24 | 38 |
| 42 years | 36 | 23 | 41 |
| 43 years | 34 | 22 | 44 |
| 44 years | 32 | 21 | 47 |
| 45 years | 30 | 20 | 50 |
| 46 years | 28 | 19 | 53 |
| 47 years | 26 | 18 | 56 |
| 48 years | 24 | 17 | 59 |
| 49 years | 22 | 16 | 62 |
| 50 years | 20 | 15 | 65 |
| 51 years | 18 | 14 | 68 |
| 52 years | 16 | 13 | 71 |
| 53 years | 14 | 12 | 74 |
| 54 years | 12 | 11 | 77 |
| 55 years & above | 10 | 10 | 80 |
LC 25 – Conservative Life Cycle Fund
| Age | Asset Class E | Asset Class C | Asset Class G |
|---|
| Up to 35 years | 25 | 45 | 30 |
| 36 years | 24 | 43 | 33 |
| 37 years | 23 | 41 | 36 |
| 38 years | 22 | 39 | 39 |
| 39 years | 21 | 37 | 42 |
| 40 years | 20 | 35 | 45 |
| 41 years | 19 | 33 | 48 |
| 42 years | 18 | 31 | 51 |
| 43 years | 17 | 29 | 54 |
| 44 years | 16 | 27 | 57 |
| 45 years | 15 | 25 | 60 |
| 46 years | 14 | 23 | 63 |
| 47 years | 13 | 21 | 66 |
| 48 years | 12 | 19 | 69 |
| 49 years | 11 | 17 | 72 |
| 50 years | 10 | 15 | 75 |
| 51 years | 9 | 13 | 78 |
| 52 years | 8 | 11 | 81 |
| 53 years | 7 | 9 | 84 |
| 54 years | 6 | 7 | 87 |
| 55 years & above | 5 | 5 | 90 |
The re-alignment of portfolio under Auto Choice is system driven and is exercised on the date of birth of the Subscriber.
Following flexibilities are given to Subscribers:
- Subscriber can have different Investment Choice (Auto / Active) for Tier I and Tier II account
- Subscriber can change the Asset Mix and Investment Choice once in a Financial year for both Tier I and Tier II account
Exit from the Scheme
Subscriber can exit from the Scheme after 10 years of account opening or on attainment of the age 60 years whichever is early. The payout will be defined as per the exit age of the Subscriber.
| Exit before the age 60 years |
Exit at the age 60 years |
- Up to 20% of Corpus can be withdrawn in lump sum
- Balance amount needs to be invested in Annuity
|
- Up to 60% of Corpus can be withdrawn in lump sum
- Balance amount needs to be invested in Annuity
|
| If the Corpus is less than or equal to Rs.1 lakh, there is no need to invest into Annuity. Entire amount can be withdrawn in lump sum |
If the Corpus is less than or equal to Rs.2 lakhs, there is no need to invest into Annuity. Entire amount can be withdrawn in lump sum |
Subscriber exiting from NPS at the age of 60 gets following flexibilities
- Subscriber can defer the decision to invest in Annuity for 3 years.
- Subscriber can defer the decision of lump sum withdrawal for 10 years.
- Lump sum amount due for withdrawal at the age 60 can be withdrawn in 10 installments as per the choice of the Subscriber.
- If Subscriber does not want to exit at the age of 60 years, she can keep on contributing towards NPS till the age 70 years.
Death Benefit
In case of death of the Subscriber the entire Corpus is given to the nominee / legal heir. In case Subscriber has not opted for any nominee, the legal heir can claim the amount.
Partial Withdrawal from the Scheme
In the entire life span, 3 partial withdrawals are allowed from Tier I account before attainment of at 60 years as shown below
- First partial withdrawal allowed after 3 years of NPS account opening
- 2nd & 3rd partial withdrawal can be opted at anytime after the 1st partial withdrawal is done
25% of the Contribution amount will be allowed for specific purposes like Child marriage, Higher education, Treatment of Critical illnesses, buying home etc.
Investment in Annuity
As discussed above, on exit from NPS or retirement some portion of Corpus has to be invested into Annuity scheme to provide monthly pension then after. Entities registered with PFRDA to provide annuity service 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
Annuity schemes available for NPS subscribers are as mentioned below
| Sr. No |
Name of Annuity Scheme |
Description |
| 1 |
Annuity for life |
Annuity / monthly pension are paid during the life time of Annuitant. On death, the payment of annuity ceases |
| 2 |
Annuity is guaranteed for 5, 10, 15 or 20 years and for life thereafter |
Annuity / monthly pension are paid during the life time of Annuitant |
| 3 |
Annuity for life increasing at simple rate of 3% per annum |
Annuity / monthly pension are paid during the life time of Annuitant. On death, the payment of annuity ceases |
| 4 |
Annuity for life with return of purchase price on death |
Annuity / monthly pension are paid during the life time of Annuitant. On death, purchase price is returned to the Nominee |
| 5 |
Annuity for life with the provision for 50% of the annuity to the spouse of the annuitant for life on death of the annuitant |
Annuity / monthly pension are paid during the life time of Annuitant. On death of the Annuitant, 50% of original monthly pension is paid during the life span of Spouse of the Annuitant. On death of the Spouse, the payment of annuity ceases |
| 6 |
Annuity for life with the provision for 100% of the annuity to the spouse of the annuitant for life on death of the annuitant |
Annuity / monthly pension are paid during the life time of Annuitant. On death of the Annuitant, monthly pension is paid during the life span of Spouse of the Annuitant. On death of the Spouse, the payment of annuity ceases |
| 7 |
Annuity for life with the provision for 100% of the annuity to the spouse of the annuitant for life on death of the annuitant, with return of purchase price on death of the last survivor |
Annuity / monthly pension are paid during the life time of Annuitant. On death of the Annuitant, monthly pension is paid during the life span of Spouse of the Annuitant. On death of the Spouse, purchase price is returned to the Nominee |
FAQs on NPS
Retail NPS
What is NPS?
National Pension System (NPS) is an investment cum pension scheme initiated by Government of India to provide old age security and pension of all citizen of India. The NPS was rolled out for all citizens of India on May 01, 2009. The Scheme is regulated by Pension Fund Regulatory and Development Authority (PFRDA).
Who can subscribe to NPS?
A citizen of India, whether resident or non – resident can join the NPS subject to following conditions
- Subscriber should be between 18 – 65 years of age as on the date of submission of her application
- Subscriber should comply with the prescribed Know Your Customer (KYC) norms as detailed in the Subscriber Registration Form for NPS
Can HUF, OCI and PIO join NPS?
No, HUF, OCI and POI are not allowed to join NPS
How the Scheme works?
The scheme is based on unique Permanent Retirement Account Number (PRAN) which is allotted to each Subscriber upon joining. Subscriber contributes towards NPS (directly or through the Employer she is working with) during her working life. On retirement or exit from the scheme, the Corpus is made available to her with the mandate that some portion of the Corpus must be invested in to Annuity to provide a monthly pension post retirement or exit from the scheme
NPS Accounts
What are different types of NPS Account?
Under NPS, Subscriber gets the option to open two accounts. A Tier I account is mandatory to open in order to join NPS. Difference between Tier I and Tier II accounts are as mentioned below
| 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 |
NA |
Can a Subscriber open more than one NPS account?
No. In the entire life span Subscriber will be allowed to open only one NPS Account. The NPS Account number which is also called PRAN is fully portable across job and geography.
Is it mandatory to open Tier II NPS Account at the time of opening Tier I NPS Account?
No. Tier II NPS Account is optional to the Subscriber. Subscriber can open Tier – II NPS Account later on as well
Can a Subscriber open only Tier II NPS Account?
No. Active Tier – I NPS Account is a must criterion for opening Tier – II NPS Account. Subscriber cannot apply for only Tier – II NPS Account
Investment of Funds under NPS
How many funds are there in NPS?
NPS offers 4 funds to Subscribers
Equities (E)
Corporate Bonds (C)
Government Securities (G)
Alternate Investments (A)
NPS restricts investment towards Equities Fund to 50% of contribution amount for both Tier I and Tier II NPS Accounts. However, Subscriber can invest up to 100% in Corporate Bonds or Government Securities Fund.
How the investment happens across three funds?
There are two investment options available under NPS
- Active Choice: under this option, Subscriber gets the flexibility to choose her own asset allocation across Equity, Corporate Bonds and Government Securities. Investment in Equity is restricted to 50% of Contribution amount. However, in Corporate Bonds and Government Securities Subscriber can invest 100% of Contribution amount
- Auto Choice: under this option investment across Equity, Corporate Bonds and Government Securities is done as per the age of the Subscriber as per below chart
LC 75 – Aggressive Life Cycle Fund
| Age | Asset Class E | Asset Class C | Asset Class G |
|---|
| Up to 35 years | 75 | 10 | 15 |
| 36 years | 71 | 11 | 18 |
| 37 years | 67 | 12 | 21 |
| 38 years | 63 | 13 | 24 |
| 39 years | 59 | 14 | 27 |
| 40 years | 55 | 15 | 30 |
| 41 years | 51 | 16 | 33 |
| 42 years | 47 | 17 | 36 |
| 43 years | 43 | 18 | 39 |
| 44 years | 39 | 19 | 42 |
| 45 years | 35 | 20 | 45 |
| 46 years | 32 | 20 | 48 |
| 47 years | 29 | 20 | 51 |
| 48 years | 26 | 20 | 54 |
| 49 years | 23 | 20 | 57 |
| 50 years | 20 | 20 | 60 |
| 51 years | 19 | 18 | 63 |
| 52 years | 18 | 16 | 66 |
| 53 years | 17 | 14 | 69 |
| 54 years | 16 | 12 | 72 |
| 55 years & above | 15 | 10 | 75 |
LC 50 – Moderate Life Cycle Fund
| Age | Asset Class E | Asset Class C | Asset Class G |
|---|
| Up to 35 years | 50 | 30 | 20 |
| 36 years | 48 | 29 | 23 |
| 37 years | 46 | 28 | 26 |
| 38 years | 44 | 27 | 29 |
| 39 years | 42 | 26 | 32 |
| 40 years | 40 | 25 | 35 |
| 41 years | 38 | 24 | 38 |
| 42 years | 36 | 23 | 41 |
| 43 years | 34 | 22 | 44 |
| 44 years | 32 | 21 | 47 |
| 45 years | 30 | 20 | 50 |
| 46 years | 28 | 19 | 53 |
| 47 years | 26 | 18 | 56 |
| 48 years | 24 | 17 | 59 |
| 49 years | 22 | 16 | 62 |
| 50 years | 20 | 15 | 65 |
| 51 years | 18 | 14 | 68 |
| 52 years | 16 | 13 | 71 |
| 53 years | 14 | 12 | 74 |
| 54 years | 12 | 11 | 77 |
| 55 years & above | 10 | 10 | 80 |
LC 25 – Conservative Life Cycle Fund
| Age | Asset Class E | Asset Class C | Asset Class G |
|---|
| Up to 35 years | 25 | 45 | 30 |
| 36 years | 24 | 43 | 33 |
| 37 years | 23 | 41 | 36 |
| 38 years | 22 | 39 | 39 |
| 39 years | 21 | 37 | 42 |
| 40 years | 20 | 35 | 45 |
| 41 years | 19 | 33 | 48 |
| 42 years | 18 | 31 | 51 |
| 43 years | 17 | 29 | 54 |
| 44 years | 16 | 27 | 57 |
| 45 years | 15 | 25 | 60 |
| 46 years | 14 | 23 | 63 |
| 47 years | 13 | 21 | 66 |
| 48 years | 12 | 19 | 69 |
| 49 years | 11 | 17 | 72 |
| 50 years | 10 | 15 | 75 |
| 51 years | 9 | 13 | 78 |
| 52 years | 8 | 11 | 81 |
| 53 years | 7 | 9 | 84 |
| 54 years | 6 | 7 | 87 |
| 55 years & above | 5 | 5 | 90 |
How the above fund allocation chart works under Auto Choice Investment option?
The first allocation is made as per the age of the Subscriber at the time of joining the Scheme as shown in the chart. For example, if the entry age of Subscriber is 42 years, her allocation towards E, C and G would be 36%, 23% and 41% respectively. On the next date of birth of the Subscriber, the portfolio will be re-aligned as per the next level chart i.e for the age 43. The re-alignment of portfolio is system driven
Is there any guaranteed returns provided under NPS?
NPS returns are market linked. Depending on the returns generated under Equity, Corporate Bonds and Government Securities funds, the Corpus will be created.
Can a Subscriber change the fund allocation pattern under Active Choice?
Yes. Subscriber can switch the asset allocation pattern under Active Choice twice in a financial year.
Can a Subscriber switch between Active Choice and Auto Choice?
Yes. Subscriber gets this flexibility. This can be done twice in a financial year.
If a Subscriber is under Active Choice and have changed the fund allocation in a particular year and wants to switch from Active Choice to Auto Choice, can this be allowed?
yes, it is possible once in a financial year
Joining NPS
What is the process of joining NPS?
subscriber needs to send duly filled NPS Application Form along with KYC documents (self attested copy of PAN card and Address Proof) and filled NCIS form to below address for account opening. Upon joining, Permanent Retirement Account Number (PRAN) is allotted to Subscriber. Further PRAN Card, IPIN and TPIN are sent to Subscriber address by CRA
Priyanka Jaisinghani, HDFC Pension Management Company Limited, 14th floor, Lodha Excelus, Apollo Mills Compound, N M Joshi Marg, Mahalaxmi, Mumbai – 400 011.
Does Subscriber need to deposit any minimum amount at the time of submission of NPS application form?
Yes. For account opening, a minimum contribution is required as shown below:
For Tier I account opening: Rs. 500
For Tier II account opening: Rs. 1,000
If Subscriber is opening Tier I and Tier II account simultaneously, minimum Rs.1,500 needs to be deposited as initial contribution.
However in order to avail of tax benefit u/s 80CCD (1B) you can deposit Rs. 50K at once in Tier I Account.
Contribution towards NPS accounts
What process Subscriber needs to follow to make contribution to NPS Account?
Subscriber can contribute towards NPS through any of the POPs by Cheuqe / Demand Draft.
Is there any restriction on frequency of contribution?
There is no restriction in terms of frequency of contribution. Subscriber has the option to make the contribution in any mode – monthly, quarterly, half yearly or yearly.
Also, Subscriber can make ad – hoc contribution as well.
Can Subscriber increase or decrease the contribution amount in subsequent years?
Yes, NPS offers this flexibility. Subscribers are allowed to alter the contribution amount as per the suitability.
Does Subscriber get any alert on credit of contribution amount to his / her NPS accounts?
Yes, once the contribution is credited to Subscriber’s NPS account, an email alert as well as a SMS alert is sent to the registered email ID and mobile number of the Subscriber
Account Maintenance
Can a Subscriber change / modify data in the NPS system after joining NPS?
Yes. Subscriber needs to submit the request along with the Service Charge of Rs. 20 plus Service Tax to the POP for initiating the modification.
From where the forms for service requests can be obtained?
The same can also be obtained from CRA website: The link is https://npscra.nsdl.co.in/non-goverment-form.php
Can a Subscriber request for a duplicate PRAN Card?
Yes. In case of loss or damage of PRAN Card, the Subscriber needs to submit a duly filled S2 form to the POP for issuance of duplicate PRAN Card. Rs.50 plus applicable Service Tax will be deducted by CRA for issuing duplicate PRAN
Does Subscriber get any physical statement for NPS account?
Yes. An annual statement containing details of the unit holdings is issued by CRA to Subscriber’s registered address within 3 months of the end of every financial year
How does Subscriber get its Statement of Transaction (SOT) on ad-hoc basis?
Subscriber can get POP branch to obtain the account statement. Subscriber can also view / print the SOTs by logging into CRA website https://cra-nsdl.com/CRA/ using the I-PIN
Non fulfillment of required contribution criteria
What happens if the minimum annual contribution of Rs.1,000 is not invested in Tier - I NPS Account?
In case the Subscriber fails to contribute minimum Rs.1000 in Tier - I NPS Account, the PRAN is frozen. Once the PRAN is frozen, Subscriber is not allowed to do any transaction (financial / non – financial) in both - Tier - I and Tier - II NPS Accounts.
Does Tier - II NPS Account of the Subscriber also get frozen if Tier - I NPS Account is frozen?
Yes, if Tier I account of an Subscriber is frozen because of non fulfillment of criteria, Tier II account is automatically get frozen.
What is the process of unfreezing the PRAN?
Subscriber can unfreeze the NPS Account by paying Rs.500 as minimum contribution amount and Rs.100 as penalty. POP charges to be added to
Tax benefits and treatment under NPS
What are the tax benefits available to Subscribers for contribution under corporate model?
Subscriber gets the following tax benefits on contributions
| NPS Account |
Tax Benefit |
Tax Treatment
on withdrawal |
| Tier I |
Salaried Individual
- Investment up to 10% of Salary (Basic + Dearness Allowance) is deductible from taxable income u/s 80CCD (1) of Income Tax Act, 1961 subject to 1.5 lakhs limit of section 80C
- Additionally, investment up to Rs.50,000 is deductible from taxable income u/s 80CCD (1B) of Income Tax Act, 1961
Self Employed Professionals
- Investment up to 20% of Gross Annual Income is deductible from taxable income u/s 80CCD (1) of Income Tax Act, 1961 subject to 1.5 lakhs limit of section 80C
- Additionally, investment up to Rs.50,000 is deductible from taxable income u/s 80CCD (1B) of Income Tax Act, 1961
|
- Up to 40% of Corpus withdrawn in lump sum is exempt from tax
- Balance amount invested in Annuity is also fully exempt from tax
- Pension received out of investment in Annuity is treated as income and will be taxed appropriately
|
| Tier II |
There is no tax benefit on investment towards Tier II NPS Account |
Indexation benefit can be claimed |
Partial withdrawal from NPS Account
Is partial withdrawal allowed from Tier I NPS Account?
Yes. Subscriber can withdraw up to 25% of contributed amount towards Tier - I NPS Account after 10 years. Additionally, Subscriber is allowed to withdraw from Tier I NPS account twice after a gap of 5 years after first withdrawal.
What are the conditions of partial withdrawal?
Withdrawal from Tier - I NPS account would be permitted for specific purposes like Child’s marriage, higher education, treatment of critical illnesses etc.
What process Subscriber needs to follow for withdrawal from Tier - II NPS Account?
In order to withdraw from Tier - II NPS Account, the Subscriber needs to submit a duly filled UOS-S12 form to the associated POP branch
Exit from NPS
When can a Subscriber exit from NPS?
Subscriber can exit from NPS after 10 years of account opening or attaining 60 years of age whichever is early.
How the payout happens if an Subscriber exists from NPS?
Primary objective of Tier – I NPS Account is to create a Corpus which can be used at the time of retirement to buy pension for the Subscriber / Nominee. Hence, there is a restriction imposed on lump sum amount accessible to Subscriber on exit as mentioned below
| Exit before the age 60 years |
Exit at Retirement age defined by the Corporate |
- Up to 20% of Corpus can be withdrawn in lump sum
- Balance amount needs to be invested in Annuity
|
- Up to 60% of Corpus can be withdrawn in lump sum
- Balance amount needs to be invested in Annuity
|
| If the Corpus is less than or equal to Rs.1 lakh, there is no need to invest into Annuity. Entire amount can be withdrawn in lump sum |
If the Corpus is less than or equal to Rs.2 lakhs, there is no need to invest into Annuity. Entire amount can be withdrawn in lump sum |
Is it mandatory to withdraw the amount immediately at the time of exit from NPS?
In case of exit from NPS on retirement age defined by the Corporate, Subscriber can defer the withdrawal option till 10 years depending on the market condition. Subscriber can withdraw this amount either in lump sum or take the same in 10 installments before attaining the age 70 years.
However, in case of pre – mature exit from NPS (before attaining the age of 60 years), Subscriber does not have option to defer the option.
What happens to the funds if Subscriber opts to defer the withdrawal (on attainment of 60 years of age defined by the Corporate)
The fund would continue to remain invested. The Pension Fund Manager, Scheme Preference and Asset Allocation Pattern will remain the same as these were at the time of vesting
Investment in Annuity
In case the Subscriber opted for withdrawal from Tier – I NPS Account before the age 60, at what age annuity will start?
In case of pre-mature withdrawal, Subscriber needs to invest in Annuity immediately. Depending on the Annuity Plan he / she has invested in, annuity would start.
Can a Subscriber change the annuity service provider?
No, this option is not available.
Can a Subscriber use 100% of accumulated wealth to buy annuity plan?
Yes. Subscriber can use 100% of accumulated wealth to buy annuity plan
In case of death of Subscriber, what happens to the annuity plan bought by her?
It will depend on the kind of annuity plan opted for the Subscriber. For an example, if the annuity plan is joint life annuity plan, on death of Subscriber, the spouse will get the annuity till he / she is alive
Death Proceedings
In case of death of the Subscriber, who can claim the corpus in Tier I and Tier II NPS Accounts of diseased?
In case of death of the Subscriber, option will be available to the nominee to receive 100% of the NPS pension wealth in lump sum. In case, nominee is not there legal heir to the Subscriber can claim the corpus.
What is the process of claiming the corpus after death of the Subscriber?
The beneficiary needs to submit the request to POP
Charges under NPS
What are the charges under NPS and how these charges are levied?
There are various intermediaries involved under NPS. The charge for these intermediaries is regulated by PFRDA. Below are the details of charges under NPS (exclusive of Service Tax)
| Intermediary |
Charge Head |
Charge |
Frequency of deduction |
Mode of deduction |
| PoP |
Subscriber Registration Charge |
Rs.125 |
One time at the time of registration |
Deducted from the initial contribution amount deposited by Subscriber |
| Contribution processing charge |
0.25% of the Contribution amount subject to minimum Rs.20 and maximum Rs.25,000 |
On each transaction |
Deducted from the amount deposited by the Subscriber |
| Non – Financial Transaction Processing Charge |
Rs.20 |
On each transaction |
Collected from Subscriber separately |
| CRA (NSDL) |
NPS Account opening charge |
Rs.40 |
One time |
Collected by cancelling units on a quarterly basis |
| Account Maintenance charge |
Rs.95 |
Annual |
| Financial transaction processing charge |
Rs.3.75 |
On each transaction |
| Pension Fund Manager |
Asset Management Charge |
0.01% |
Annual |
Adjusted before NAV publication |
| Custodian |
Asset Servicing Charge |
0.0032% |
Annual |
| NPS Trust |
Trust Management Charge |
0.01% (no Service Tax applicable) |
Annual |
*subject to minimum Rs.20 and maximum Rs.25000 per PRAN per Transaction
**Service Tax is not applicable on Trust Management Charge.
Does Subscriber need to pay POP charges over and above the contribution amount?
No, the POP charges would be deducted from the Contribution amount.
What is meant by Non – Financial Transaction?
Transactions like change of address, contact details etc are called non – financial transactions.
How is the Non – Financial Transaction Charge recovered by POP?
Subscriber needs to pay Rs.20 + Service Tax by Cheque at the time of submitting request for process any Non – Financial transaction
