Portable and Regulated

  • NPS provides seamless portability across jobs and across locations, unlike all current pension plans. It would provide hassle-free arrangement for the individual subscribers.
  • NPS is regulated by PFRDA, with transparent investment norms, regular monitoring and performance review of fund managers by NPS Trust.
portable-and-regulated

Offers of Pension Fund Manager

  • NPS offers a range of investment options and choice of Pension Fund Manager for planning the growth of your investments and see your money grow.
  • Individuals can switch over from one investment option to another or from one fund manager to another, subject, of course, to certain regulatory restrictions.
offers-of-pension-fund-manages

Flexibility to choose Fund Managers

NPS offers a range of investment options and choice of Pension Fund Manager (PFMs) for planning the growth of your investments in a reasonable manner and see your money grow. Individuals can switch over from one investment option to another or from one fund manager to another, subject, of course, to certain regulatory restrictions. The returns are totally market related.

Flexibility to choose between 8 Fund Managers:

The subscribers can choose between 7 Fund Managers namely-
  • ICICI Prudential Pension Fund Management Co. Ltd.
  • HDFC Pension Management Co. Ltd.
  • Kotak Mahindra Pension Fund Ltd.
  • LIC Pension Fund Ltd.
  • SBI Pension Funds Pvt. Ltd
  • UTI Retirement Solutions Ltd
  • Birla Sun Life Pension Management Limited

One Fund Manager must compulsorily be selected.

flexibility-to-choose-fund-managers

Choice for distribution

  • A subscriber must choose between active choice and auto choice for distribution of his contribution. If active choice is selected, the subscriber must indicate the percentage distribution between corporate, gilt and equity. The maximum investment allowed in equity is 75%.
choice-for-distribution

Permanent Retirement Account Number

Opening an account with NPS provides a Permanent Retirement Account Number (PRAN), which is a unique number and it remains with the subscriber throughout his lifetime.

The system is structured into two tiers:
  • Tier-I account: This is the non withdrawal Permanent Retirement Account in which the accumulations are deposited and invested as per the option of the subscriber.
  • Tier-II account: This is a voluntary withdrawal 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.
pran

NPS tax Benefit

As per the amendment made by Union Budget 2015 in tax provisions for FY 2015-16, if any customer contributes voluntarily towards the NPS system, then he would get an additional benefit of ₹ 50,000 under section 80CCD (1B) which would be over and above the ceiling limit of ₹ 1,50,000 as prescribed under section 80 CCE.

How to Apply

  1. Login to Internet Banking: Login to Internet Banking and enroll for NPS in the ‘Service Requests’ section.
  2. Confirm details & authenticate with Aadhaar OTP: Confirm the auto-populated account details like PAN, Aadhaar among others and update a few details like nominee, choice of fund manager and investment percentages. Thereafter, enter the Aadhaar OTP received on your mobile number and upload a scanned image of the signature.
  3. SR generation: Upon submission of the online form, a SR is generated and the NPS account gets activated on the next working day. On activation of the NPS account, ‘Permanent Retirement Account Number’ (PRAN) is sent to you via SMS on the registered mobile number with ICICI Bank and NSDL.

How to make a payment

You need to login to Internet Banking to make the contribution to NPS before the end of the following month. As a confirmation of contribution to the NPS account, you will get an e-mail as well as an SMS alert on your registered e-mail ID and mobile number. Thereafter, payment can be made to the NPS account any time of the year.

The process to make the payment is as below:

  • Login to ICICIBank.com.
  • Click on Payments & Transfer > Manage Biller > Register Biller.
  • Enter NPS in the Biller name field and click on ‘Search’.
  • Click on ‘Register’, below the Available Biller Section.
  • Enter the PRAN received and DOB as available on ICICI Bank records & click on Next.
  • Preview the details filled and click on ‘Submit’.
  • The biller is successfully registered and the payment can be made after 3 working days.
  • To make the payment, click on Payments & Transfer> Bill Payments > Registered Billers.
  • Once the initial payment is made, subsequent payments can be made any time of the year.

Please do not make the payment before 3 working days or the same will be reversed to your Savings Account.

An annual statement for the NPS account will be issued by the Central Recordkeeping Agency (CRA). Customers can also view/ print statements by logging into the NPS app or the CRA website.

How to withdraw

  • The subscriber wishing to exit from National Pension System has to submit a Withdrawal Application Form to the concerned POP along with the documents specified below for withdrawal of the benefits.
    Following documents are required to be submitted along with the withdrawal forms in order to settle the claims:
    1. PRAN card in original.
    2. Attested copy of proof of identity (e. g. Passport, Aadhar Card, PAN Card, valid Driving License, Voter ID Card etc.).
    3. Attested copy of proof of address (e. g. Passport, Aadhar Card, Valid Driving License, Voter ID Card etc.).
    4. Cancelled cheque (containing Subscriber Name, Bank Account Number and IFSC Code) or Bank Certificate containing Name, Bank Account Number and IFSC code, for direct credit or electronic transfer.
  • The POP would authenticate the documents and forward them to Central Record-keeping Agency (CRA) the National Security Depository Limited (NSDL).
  • CRA in turn would register the claim and forward the necessary application form along with the procedure to be followed and documents that need to be submitted.
  • Once the documents are received, CRA processes the application and settles the account.

Interest Rate and Eligibility

Interest Rate 9% - 12%
Eligibility All citizens from 18 years to 65 years

How It Works?

  • At the time of a normal exit from NPS, the subscribers may use the accumulated pension wealth under the system either to purchase a life annuity from a PFRDA empanelled life insurance company or withdraw a part of the accumulated pension wealth as lump-sum, if they choose to do so.
  • ICICI Bank has been appointed by PFRDA to act as one of the Point of Presence (POP) for the NPS. Presently, we have designated branches to carry out the NPS activities as Point of Presence- Service Providers (POP-SP).




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