NPS Scheme - National Pension System

The National Pension Scheme (NPS) is a long-term investment and pension plan launched by the Government of India, aimed at providing Indian citizens with the opportunity to build a secure retirement fund. It's cost-effective, allowing minimal individual investments to grow over time. Whether you switch jobs or move, NPS stays with you, ensuring flexibility for various professions and locations.

It is administered by the Pension Fund Regulatory and Development Authority (PFRDA), NPS ensures close monitoring for reliability.

To access NPS services and receive monthly annuities post-retirement, subscribers need a Permanent Retirement Account Number (PRAN). It's a reliable way to secure your future, offering peace of mind and financial stability during retirement.

The National Pension Scheme (NPS) offers the following tax advantages to self-employed people and salaried persons:

• Under Section 80CCD(1), salaried employees may set aside up to 10% of their income for NPS investments, up to a maximum of Rs. 1.5 lakh annually.
• A further deduction of Rs. 50,000 is permitted under Section 80CCD(1B), for a total of Rs. 2 lakh.
• Under Section 80CCD(1B), self-employed contractors are eligible to deduct an additional Rs. 50,000 and up to 20% of their gross annual income, up to a maximum of Rs. 1.5 lakh.
• Under Section 80CCD(2), NPS contributors who make direct or employer-paid contributions are eligible for additional deductions.

An NPS account can be opened with ease through ICICI Bank's simplified online facilities. Here are the two ways to open NPS account with ICICI Bank:

NPS Account with iMobile Pay App:

To open your NPS account with ICICI Bank, follow the steps below:

1. Log in to the ICICI Bank iMobile Pay app.
2. Click the "Invest and Insure" section.
3. Find the “Instant NPS” feature.
4. Fill in all the required details such as your investment amount, personal information, and nominee details.
5. Now, upload your photo and signature.
6. After verifying the information, submit your application through the app.

NPS Account with ICICI Bank Net Banking:

Here’s how you can open an NPS account online through Net Banking facility of ICICI Bank:

1. Log in to the ICICI Bank Net Banking.
2. Find the section, “Investments and Insurance”.
3. Next click “National Pension System”.
4. Fill your investment amount, personal information, and nominee details.
5. Next, upload your photo and signature.
6. Confirm the details and click “Submit”.

Please note: Your first contribution to the NPS account must be made online within 45 days of PRAN generation to avoid account freezing.

NPS is an easily accessible, low cost, tax-efficient, flexible and portable, voluntary defined-contribution, retirement savings scheme introduced by the Government of India and regulated by the Pension Fund Regulatory and Development Authority (PFRDA).

1. Regulated - NPS is regulated by PFRDA, which is established through an Act of Parliament (PFRDA Act 2013)

2. Pension for all - can be voluntarily subscribed by any Indian citizen (resident/non-resident/overseas citizen)

3. Low cost – NPS is one of the low cost pension schemes in the world

4. Flexible - Subscribers have various options to choose from - Point of Presence (PoP), Central Recordkeeping Agency (CRA), Pension Fund and Asset Allocation, etc. The choices exercised can be changed subsequently

5. Portable – NPS Account can be transferred across employment, location(s)/geography(ies)

6. Tax efficient – Tax incentives are available to the subscribers under the Income Tax Act 1961.

7. Optimum returns – Market linked returns based on the investment choice made by the subscriber

8. Transparent – Subscribers can access their NPS Accounts online 24X7 and public disclosures are mandated.