National Pension System (NPS) is a pension cum investment scheme launched by Government of India to provide old age security to Citizens of India. It brings an attractive long term saving avenue to effectively plan your retirement through safe and regulated market-based return. The Scheme is regulated by Pension Fund Regulatory and Development Authority (PFRDA). National Pension System Trust (NPST) established by PFRDA is the registered owner of all assets under NPS.

National Pension System

2. What are different sectors in NPS?

NPS can be broadly classified into two categories and it is further customised for different sectors as mentioned below:

  1. Government Sector:
    1. Central Government:
      The Central Government had introduced the National Pension System (NPS) with effect from January 1, 2004 (except for armed forces). All the employees of Central Autonomous Bodies who have joined on or after the above mentioned date are also mandatorily covered under Government sector of NPS.Central Government/CABs employee contributes towards pension from monthly salary along with matching contribution from the employer.
    2. State Government:
      Subsequent to Central Government, various State Governments adopted this architecture and implemented NPS with effect from different dates. A State Autonomous Body (SAB) can also adopt NPS if the concerned State Government/UT have adopted the NPS architecture and initiated implementation of the same. State Government/SABs employees also contribute towards pension from monthly salary along with matching contribution from the employer.
  2. Private Sector (Non-Government Sector):
    1. Corporates:
      NPS Corporate Sector Model is the customized version of NPS to suit various organizations and their employees to adopt NPS as an organized entity within purview of their employer-employee relationship.
    2. All Citizens of India:
      Any individual not being covered by any of the above sectors has been allowed to join NPS architecture under the All Citizens of India sector from May 01, 2009.
3. Why should I open NPS Account?

Opening NPS account has its own advantages as compared to other pension product available. Below are few features which make NPS different from others:

  1. Low cost product
  2. Tax breaks for Individuals, Employees and Employers
  3. Attractive market linked returns
  4. Easily portable
  5. Professionally managed by experienced Pension Funds
  6. Regulated by PFRDA, a regulator set up through an act of Parliament
4. Who can join NPS?

Any individual citizen of India (both resident and Non-resident) in the age group of 18-65 years (as on the date of submission of NPS application) can join NPS.

5. Can an NRI join NPS?

Yes, an NRI can open an NPS account. Contributions made by NRI are subject to regulatory requirements as prescribed by RBI and FEMA from time to time.However, OCI (Overseas Citizens of India) and PIO (Person of Indian Origin) card holders and HUFs are not eligible for opening of NPS account.

6. Can I open multiple NPS accounts?

No, opening multiple NPS accounts for an individual is not allowed under NPS. However an Individual can have one account in NPS and another account in Atal Pension Yojna.

7. Can I open an NPS account jointly with my spouse, child, relative, etc.?

No, NPS account can be opened only in individual capacity and cannot be opened or operated jointly or for and on behalf of HUF

8. How NPS works?

Upon successful enrolment, a Permanent Retirement Account Number (PRAN) is allotted to the subscriber under NPS. Once the PRAN is generated, an email alert as well as a SMS alert is sent to the registered email ID and mobile number of the subscriber by NSDL-CRA (Central Record Keeping Agency).Subscriber contributes periodically and regularly towards NPS during the working life to create the corpus for retirement. On retirement or exit from the scheme, the Corpus is made available to the Subscriber 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.

Features & Benefits of NPS

1. What are the benefits of NPS?

The benefits of NPS are

  1. It is voluntary – A Subscriber can contribute at any point of time in a Financial Year and also change the amount he wants to set aside and save every year.
  2. It is simple – Subscriber is required to open an account with any one of the POPs (Point of Presence) or through eNPS (https://enps.nsdl.com/eNPS/).
  3. It is flexible – Subscribers can choose their own investment options and pension fund and see their money grow.
  4. It is portable – Subscribers can operate their account from anywhere, even if they change the city and/or employment.
  5. It is regulated – NPS is regulated by PFRDA, with transparent investment norms and regular monitoring and performance review of fund managers by NPS Trust.
2. Who will invest my money in NPS?

Pension Funds are responsible for investing contributions, accumulating them and managing pension corpus through various schemes under National Pension System in accordance with the provisions of the PFRDA Act.

3. What are the investment choices available in NPS?

NPS offers you two approaches to invest in your account:

  1. Active choice
  2. Auto choice

In Active choice, Subscriber selects the allocation percentage in assets classes,however, in Auto choice, funds are automatically allocated amongst asset classes in a pre-defined matrix, based on the age of the subscriber. After selection of pension fund manager, Subscriber also has to exercise the choice of investment.

4. What is Active / Auto choice in NPS?

Active choice:
Unlike traditional investment products, NPS offers you with the flexibility to design your own portfolio. Depending on your risk appetite, you can design your portfolio by allocating Funds amongst available four asset classes. This is called Active Choice. Following are the four asset classes are available under Active choice:

  1. Equity or E
  2. Corporate Debt or C
  3. Government Securities or G
  4. Alternative Investment Funds or AIF

Auto Choice:

At times designing your portfolio can be a little delicate and time consuming. NPS gives you the flexibility to opt for a dynamic and automatic allocation of your portfolio in case you do not want to exercise an Active choice. This option is called the Auto choice.

In Auto choice, your money will be invested in asset classes – E, C and G – in defined proportions based on your age. As individual’s age increases, exposure to Equity and Corporate Debt is gradually reduced and that in Government Securities is increased. Depending upon the risk appetite of subscriber, there are three different options available within Auto Choice-Aggressive, Moderate and Conservative.

  1. Aggressive (LC-75) – Maximum Equity exposure is 75% up to the age of 35
  2. Moderate (LC-50) – Maximum Equity exposure is 50% up to the age of 35
  3. Conservative (LC – 25) – Maximum Equity exposure is 25% up to the age of 35
5. Where (in which asset classes) my money will get invested in NPS?

Following are the assets classes are available for investment for investment under NPS:

  1. Equity or E- A ‘high return-high risk’ fund that invests predominantly in equity market instruments
  2. Corporate Debt or C – A ‘medium return-medium risk’ fund that invests predominantly in fixed income bearing instruments
  3. Government Securities or G – A ‘low return-low risk’ fund that invests purely in Government Securities
  4. Alternative Investment Funds or A –In this asset class, investments are being made in instruments like CMBS, MBS, REITS, AIFs, Invlts etc.

If you are a conservative investor, you can choose to invest your entire pension wealth in C or G asset class. However, if you want to have exposure to equity, you can allocate maximum 50% of your money to asset class ‘E’ or up to 5% in Alternative Investment Funds.

6. What is meant by Scheme preference change?

Scheme preference change is the option given to the Non-Government subscriber to design / redesign their own portfolio. It comprises change of Pension Fund Manager (PFMs), switching between Active choice and Auto choice and in case of Active choice to decide percentage of allocation in different asset classes.

A subscriber of Non-Government sector can change their Scheme Preference through their associated POP-SP. It can also be done online through their log-in credentials of CRA.

In NPS, there are multiple PFMs, Investment Options (Auto or Active) and four Asset Classes – Equity, Debt, Government Securities and Alternate Investment Funds. Subscriber has been given the flexibility to choose any one out of available Pension Fund Managers (PFMs) and investment options separately for Tier I and Tier II account.

7. How do I select the PFM?

Selection of Pension Fund Manager is mandatory while filling up the registration form. All the PFMs under NPS are registered and regulated by PFRDA. They are mandated to invest Subscriber’s contribution as per prescribed guidelines and regulations by PFRDA.

You can find the performance of respective PFMs on NPS Trust website at http://www.npstrust.org.in/return-of-nps-scheme. Returns of different schemes under NPS may help you while selecting the PFM. In NPS, you are allowed to change PFM once in a financial year.

8. What is Tier II account?

NPS provides you two types of accounts: Tier I and Tier II. Tier I is mandatory retirement account, whereas Tier II is a voluntary saving Account associated with your PRAN. Tier II offers greater flexibility in terms of withdrawal, unlike Tier I account, you can withdraw from your Tier II account at any point of time.

9. What are the benefits of Tier II account?

Below are few significant benefits of Tier II NPS Account:

  1. No additional annual maintenance Charge
  2. Saving for your day to day need (withdrawal at any point of time)
  3. Transfer fund to pension account ( Tier I) any time
  4. No minimum balance required
  5. No levy of exit load
  6. Separate Nomination facility available
  7. Option to select different Investment pattern from Tier I
10. Who can open a Tier II Account?

Any subscriber who has an active Tier I account can activate a Tier II account

  1. It can also be opened along with Tier I account
  2. It is open for any citizen of India, both resident and non-resident.
  3. All Government Subscribers who are mandatorily covered under NPS and have active Tier I account, can activate Tier II account
11. How are the returns calculated in Tier I and Tier II account? Is there an assured return / div / bonus?

The contribution remitted in Subscriber’s account is passed on to the PFMs as selected by the Subscriber at the time of registration (or changed subsequently). The PFMs invest the money and declare Net Asset Value (NAV) at the end of each business day. Accordingly, based on the NAV, units are credited in the Subscriber’s account. The present value of the investment is arrived at by multiplying the units held with the NAV.

The return under NPS is market driven. Hence, there is no guaranteed/defined amount of return. The returns generated through investments are accumulated for the pension corpus and is not distributed by way of dividend or bonus.

12. What is Net Asset Value (NAV)?

Net Asset Value is also known as NAV. This is the price of one unit of a fund. NAV is calculated at the end of every working day. It is calculated by adding up the value of all the securities and cash in the fund’s portfolio (its assets), subtracting the fund’s liabilities, and dividing that number by the number of units that the fund has issued.

The NAV increases (or decreases) when the value of the fund’s holdings increase (or decrease). NAV of schemes of different PFMs may differ. Even the different schemes under the same PFM will have different NAV.

13. Do I need to re-open NPS account when I change my Job or location?

No, there is no need to re-open NPS account when you change your Job or location. Portability is one of the key features of NPS, it can be operated from anywhere in the country irrespective of individual employment and location/geography.This implies that you can shift your PRAN from one sector to another, e.g. Central Government to Corporate sector, State Government to Central Government etc. and vice versa.Further, if you are relocated because of any reason, you can also change POP-SP within the same POP or you can change to POP of your choice available to the location.

Tax Benefits under NPS

1. What are the tax benefits under NPS?

Tax Benefit available to Individual:
Any individual who is Subscriber of NPS can claim tax deduction up to 10% of gross income under Sec 80 CCD (1) with in the overall ceiling of Rs. 1.5 lac under Sec 80 CCE.

Exclusive Tax Benefit to all NPS Subscribers u/s 80CCD (1B)
An additional deduction for investment up to Rs. 50,000 in NPS (Tier I account) is available exclusively to NPS subscribers under subsection 80CCD (1B). This is over and above the deduction of Rs. 1.5 lakh available under section 80C of Income Tax Act. 1961.

Tax Benefits under the Corporate Sector:

  1. Corporate Subscriber:
    Additional Tax Benefit is available to Subscribers under Corporate Sector, u/s 80CCD (2) of Income Tax Act. Employer’s NPS contribution (for the benefit of employee) up to 10% of salary (Basic + DA), is deductible from taxable income, without any monetary limit.
  2. Corporates
    Employer’s Contribution towards NPS up to 10% of salary (Basic + DA) can be deducted as ‘Business Expense’ from their Profit & Loss Account.

How to make the Investment to avail the Tax Benefit:

If you are an existing Subscriber, you can approach any POP-SP or alternatively you can visit eNPS website (https://enps.nsdl.com) for making additional contribution in your Tier I account.

Please note: Tax benefits are applicable for investments in Tier I account only.

2. What will be the investment proof to avail the tax benefit under NPS?

The Subscriber can submit the Transaction Statement as an investment proof. Alternatively, Subscriber from “All Citizens of India” can also download the receipt of voluntary contribution made in Tier I account for the required financial year from NPS account log-in. It can be downloaded from the sub menu “Statement of Voluntary Contribution under National Pension System (NPS)” available under main menu “View” in NPS account log-in.

3. What are other tax benefits under NPS apart from available u/s 80CCD?

Apart from tax benefits available under 80CCD, below are the other tax benefits available under NPS:

  1. Tax benefits on partial withdrawal:
    Subscriber can partially withdraw from NPS tier I account before the age of 60 for specified purposes. According to Budget 2017, amount withdrawn up to 25 per cent of Subscriber contribution is exempt from tax.
  2. Tax benefit on Annuity purchase:
    Amount invested in purchase of Annuity, is fully exempt from tax. However, annuity income that you receive in the subsequent years will be subject to income tax.
  3. Tax benefit on lump sum withdrawal:
    After Subscriber attain the age of 60, up to 40 percent of the total corpus withdrawn in lump sum is exempt from tax.For example: If total corpus at the age of 60 is 10 lakhs, then 40% of the total corpus ie 4 lakhs, you can withdraw without paying any tax. So, if you use 40% of NPS corpus for lump sum withdrawal and remaining 60% for annuity purchase at the time of retirement, you do not pay any tax at that time. Only the annuity income that you receive in the subsequent years will be subject to income tax.
4. What are the tax benefits on investments under Tier II account?

There is no tax benefit on investment towards Tier II NPS Account.

Subscriber Registration under National Pension System (NPS)

1. Where can I open NPS account?

Opening an NPS account is very easy, it can be opened through Online or by visiting to your nearest Point Of Presence.

  1. Through POP: The applicant is required to submit duly filled in Subscriber Registration Form (CSRF) along with supporting KYC documents to the branch of POP called as POP-SP or visit the online portal of the respective POPs.
  2. Online (through eNPS): The applicant needs to visit eNPS website of NSDL-CRA (https://enps.nsdl.com) and register himself/herself through Aadhaar or PAN Card details. After filling up other necessary details and payment of initial contribution, PRAN will be generated online. If you select “eSign” option, your account will be opened paperless (you are not required to send the physical copy of form to NSDL-CRA).
    For more details, you may go through “How to open NPS account” under “Important Links” section available on Home page of this website.
2. Where can one get the Subscriber Registration Form?

Subscriber Registration Form (CSRF) is available at “Form” section in sector wise information available on this website.

3. Who is POP/POP-SP? What is the role of POP/POP-SP under NPS?

PFRDA has appointed entities known as Points of Presence (POPs) to extend customer interface for all citizens of India, who wish to open NPS account. POP is the first point of interaction between the subscriber and the NPS architecture. Point of Presence (POP) shall perform the functions relating to registration of subscribers, undertaking Know Your Customer (KYC) verification, receiving contributions and instructions from subscribers and transmission of the same to designated NPS intermediaries. The authorized branches of POP for NPS services are called POP-SP (Points of Presence-Service Provider).

To find the nearest POP-SP, you may visit “Find your nearest POP-SP”under “Important Links” section available on Home page of this website.

4. Who is CRA-FC? What is the role of CRA-FC under NPS?

CRA-FC is Facilitation Centre appointed by NSDL-CRA to facilitate Nodal Offices to submit applications for allotment of PRAN. Following services is being offered by the CRA-FC:

  • Acceptance of Application for allotment of new PRAN by Nodal offices
  • Acceptance of Subscriber request for change in signature and/or change in photograph by Nodal offices.

To find the nearest CRA-FC, you may visit “Find your nearest CRA-FC”under “Important Links” section available on Home page of this website. However as a Subscriber under All Citizens of India sector, you are not required to interact with CRA –FC. Your single point of contact would be the respective POP-SP.

5. How can a Subscriber check the status of their PRAN application?

Once the PRAN is generated, an email alert as well as a SMS alert will be sent to the registered email ID and mobile number of the Subscriber. NSDL-CRA also intimates the Subscriber about the dispatch details once the PRAN kit for the Subscriber is dispatched.

Subscriber can check the status of his/ her PRAN application by 17 digit receipt number provided by POP-SP or the acknowledgement number allotted by CRA-FC at the time of submission of application forms by POP-SP.

You may check the status of you PRAN application through below tabs given under “Important Links” section available on Home page of this website

  1. PRAN application Status (through Ack. ID) – (acknowledgement number allotted by CRA-FC)
  2. Registration and Contribution status – (receipt number given by the POP-SP)
  3. Track PRAN Card Status (NPS Regular) – (to know the PRAN card dispatch status)
6. How much time is required for registration?

Time required in Subscriber Registration depends on the mode of registration opted.

  1. Through POP: After receipt of registration forms, POP scrutinizes the forms and generates PRAN. POP then sends the forms to NSDL-CRA. PRAN card is printed and dispatched within 10 days working days from the date of receipt of duly filled in registration form at NSDL-CRA.
  2. Through Online: Online Registration through eNPS portal is much faster and can be completed in few minutes. With facility to eSign, applicant can do the paperless registration under NPS.

To reset the T-PIN, please refer Question no. 6 of “Service Request” section of FAQs.

7. What are PRAN and PRAN Kit?

After registration of the Subscriber, a PRAN card is dispatched to the Subscriber which has Subscriber’s name, Father’s name, Photograph and Signature/thumb impression and Subscriber’s date of birth. This card proves the completeness of information in the CRA system.

A PRAN Kit containing PRAN card, Subscriber details (referred as Subscriber Master List) and an information booklet is sent to the Subscriber’s registered address. The Subscriber Master List includes all the information as provided by the Subscriber in the application and captured in CRA system.

Besides, ePRAN card is also available under subscriber’s NPS login.

For log-in to your account, you may visit to the “Login” section available on home page of this website.

8. What are I PIN and T PIN?

I-PIN:
I-PIN is a password to access your NPS account/mobile App. Through your NPS account log-in, you can view details of NPS account and initiate the various service requests.

To reset the I-PIN, please refer Question no. 5 of “Service Request” section of FAQs.

T-PIN:
T PIN can be used to access your NPS account through the toll free helpline (1-800-222080). The Bilingual ‘Interactive Voice Response’ (IVR) service helps you to access your account details and avail various services including request for Transaction Statement to your registered email ID. You can also speak to Customer Care Executive for any specific query. You can reset the T PIN through the option available in IVR.

To reset the T-PIN, please refer Question no. 6 of “Service Request” section of FAQs.

9. How can I activate the Tier II account?

Activation of Tier II account is very easy, it can be done through online at eNPS website (https://enps.nsdl.com) or through your associated POP-SP. For more details, please refer “How to activate the Tier II account” section under “Knowledge Centre” available on this website.

Contribution under National Pension System (NPS)

1. How can a Subscriber contribute to NPS?

To contribute in Tier I and Tier II account, the Subscriber needs to deposit the contribution amount along with duly filled NCIS (NPS Contribution Instruction Slip) to any POP-SP or alternatively can visit eNPS website to make contribution in NPS. Following are the three ways to contribute in NPS:

  1. Fill contribution slip and submit it to any POP-SP
    To find the nearest POP-SP, you may visit “Find your nearest POP-SP”under “Important Links” section available on Home page of this website.
  2. Visit eNPS website (https://enps.nsdl.com)
    Submit your PRAN & DOB to get OTP on your Mobile to contribute online by Net banking / Debit Card / Credit Card.
  3. Download NPS Mobile App and contribute anytime and anywhere on the go
    For Android and IOS users
2. What is the minimum contribution criteria under NPS?

A Subscriber is required to make initial contribution (minimum of Rs. 500 for Tier I and a minimum of Rs. 1000 for Tier II) at the time of registration.
Subsequently, a Subscriber can make contribution subject to the following conditions:

Tier I:

  1. Minimum amount per contribution – Rs. 500
  2. Minimum contribution per Financial Year – Rs. 1,000
  3. Minimum number of contributions in a Financial Year – one

Over and above the mandated limit of a minimum of one contribution in Tier I, a Subscriber may decide on the frequency of the contributions across the year as per his / her convenience.

Tier II:

  1. Minimum amount per contribution – Rs. 250
  2. No minimum balance required
3. When will the units be credited to my NPS account?

Units will be credited to the subscriber’s account on the day contribution is invested by the PFM (Pension Fund Manager). It takes T+2 days to get unit credited in subscriber account, wherein T being the date of fund receipt at Trustee bank. This activity is called settlement in CRA system wherein, contribution is transferred from POP to PFM for investment in predefined scheme of subscriber and accordingly, the PFM declares NAV of the day and Units are allotted to the subscriber.

We can understand this with an example as follow:

POP who as an interface for the subscriber in NPS, collects NPS contribution from subscriber and uploads the contribution details in the CRA system and at the same time deposits the contribution to Trustee Bank (Bank designated for collection of NPS contribution from NPS intermediaries such as POP). The Trustee Bank, on receipt of contribution, uploads the contribution receipt details on CRA system. On receipt of these two information (contribution details from POP and contribution receipt information from Trustee Bank), the settlement process is initiated in the CRA system.

4. Can a Subscriber make contributions in his / her NPS account before receipt of the PRAN Card?

Yes. To contribute in NPS, only Permanent Retirement Account Number is required. Once PRAN is allotted to a Subscriber, contribution can be made irrespective of whether PRAN card is received or not.

Service Request under National Pension System (NPS)

1. How can a Subscriber change NPS account details?

A Subscriber can request for change / correction in personal details, nomination details, bank details, reissue of I-PIN/T-PIN/PRAN Card to the POP-SP. A Subscriber can also update his / her photograph and signature by submitting written request to the POP-SP.

Subscriber needs to submit the following forms for change request:

  1. Form UOSS2 – for change in personal or nomination details or request for re-issue of T-PIN/I-PIN or Reprint of PRAN card.
  2. Form S3- Request for change in Scheme Preference or Switch or change of employment.
  3. Form S7 – Request for change in Photograph and/or Signature

Subscribers can also update certain details through online or NPS Mobile APP. Please refer question no. 8 and 9 of this section for the same.

2. How can a Subscriber change his scheme preference?

Apart from submission of S3 form to associated POP-SP, Subscriber can also change Scheme preference through their NPS account log-in. You can follow the simple steps as given below to change the scheme preference online:

  1. Go to your NPS account log-in
  2. Click on sub menu ” Scheme preference Change” under main menu “Transaction”
  3. Select Tier type and change the Scheme preference as you intended to do

Subscribers can also update certain details through online or NPS Mobile APP. Please refer question no. 8 and 9 of this section for the same.

3. How many nominees are allowed under NPS? Can a minor be a nominee?

Subscriber is allowed to register up to three nominees in NPS. Yes, minor can be a nominee. In such case, Subscriber will be required to provide guardian’s details and date of birth of the minor.

4. How to request for a duplicate PRAN card?

In case of loss or damage of PRAN card, the Subscriber needs to submit a duly filled S2 form to the respective POP-SP. After verifying the form, the POP/POPSP will enter and authorize the request in the CRA system. Subsequently, the request is processed by CRA and a fresh PRAN Card is printed and sent to Subscriber’s registered address.

Alternatively, Subscriber can download ePRAN through their NPS account login.

5. How can I reset I PIN (generate password)?

Subscriber can generate password by doing few steps even without log-in to your account.

  1. Visit welcome page for NPS account log-in
  2. Click on the “Forgot Password” link
  3. Select “Instant Reset I-PIN”
  4. Enter minimum details required like PRAN, Date of Birth
  5. Enter new password of your choice

Subscriber should select any one of the following options:

  1. Generate OTP: Once Subscriber selects this option, a One Time Password (OTP) will be sent to the Subscribers registered Mobile Number / email id.After receiving the same the Subscriber needs to submit the OTP.
  2. Go to Nodal Office: In this option, Subscriber needs to print the acknowledgment and handover the same to anyPOP-SPs for authorization irrespective of whether the Subscriber is associated with the POP-SP or not. After successful authorization by the POP-SP, Subscriber can use the new password (provided during the initiation of the request) for login.
6. How can I reset the T-PIN (Telephonic Password)?

To reset the T-PIN, Subscriber can call the CRA toll free number 1800-222-080 to access IVR (Interactive Voice Response) system. After selecting the appropriate option, system will prompt the Subscriber to reset T-PIN by providing the existing T-PIN and the required new T-PIN. In case Subscriber has forgotten T-PIN, upon successful verification of the personal details, the Subscriber will be transferred to a helpline executive to enable him/her to change the T-PIN.

7. How can I get the Annual Account Statement for my PRAN?

The Annual NPS Account Statement (as of March 31st of every year) is sent to the registered address of Subscriber. However, access to your Transaction statement is not only limited to this. A Subscriber can also get the transaction statement:

  1. By accessing NPS account through PRAN and password
  2. Subscribers can also view Statement of Holding through account Log-in
  3. Subscriber can request transaction statement on e-mail ID through IVR (CRA toll free number)
  4. Subscriber can also request for Transaction Statement through NPS mobile App.
8. Can I avail NPS related services online?

Yes, certain services related to NPS can be availed online. These are as follows:

  1. Change of address (correspondence and permanent): using Aadhaar based authentication through OTP
  2. Change of scheme preference: UoS as well as Govt. Subscribers (for Tier II only) can change their Scheme Preference in CRA system.
  3. Change of mobile number and email: Subscriber can also change mobile number and email directly in CRA system using I-PIN
  4. I-PIN Generation: No physical I-PIN is issued to eNPS subscribers. The eNPS Subscribers can access the CRA system immediately after registering without waiting for physical I-PIN. Subscriber can also reset I-PIN instantly in case I-PIN locked/ forgotten.
  5. Online view of Statement of Holding (SOH) /Transaction (SOT): Subscriber can view SOH as well as SOT online in CRA system, anytime anywhere by using the password (I-PIN) and need not wait for physical SOT sent on yearly basis. Year wise SOT can also be obtained through IVR.
  6. ePRAN card view: Subscriber can view, download and print ePRAN card from CRA system, in case of loss of PRAN card issued by CRA.
  7. Aadhaar Seeding: Subscriber can add/update Aadhaar using Aadhaar based authentication through OTP.
  8. Reprint of PRAN card: Reprint PRAN card using mobile based authentication through OTP.
9. Why should I download the NPS Mobile App?

To have a NPS mobile App is the most convenient way to get the services/information related to NPS. You can invest and manage your NPS account on the go. You can download the App “NPS by NSDL eGov” from “App Store” ( ios users) and “Google play” (android users).

Following are the services you can get through NPS Mobile App:

  1. Submit Contribute Online for Tier I & Tier II
  2. Request Transaction Statement to your email ID
  3. Change Scheme Preference
  4. Modify address using Aadhaar
  5. Aadhaar Seeding
  6. View your account details
  7. View current holding
  8. Change your password/ Secret Question
  9. Generate your password using secret question/OTP
  10. View last 5 contributions
  11. Initiate withdrawal from Tier II
  12. Change your contact details (Tel./Mobile/email ID)
  13. Get notification related to NPS

Grievance/Queries Redressal under National Pension System (NPS)

1. Where can a Subscriber register a grievance/complaint?

NSDL-CRA has built a multi layered Grievance redressal mechanism which is easily accessible, simple, quick, responsive and effective.

You have the option of registering grievance/complaint through the following alternatives:

Web based interface:
A Subscriber can register the grievance against any entity under NPS through log-in to the account. Alternatively, they can visit at “Log Your Grievance / Enquiry” section under “Subscriber’s Corner” of this website to log the grievance/query. Through this platform, Subscriber can register grievance/query even without having the PRAN Details. On successful registration, a token number will be displayed on the screen for future reference.

Call Centre/Interactive Voice Response System (IVR):
Subscriber can contact the NSDL-CRA call centre at toll free telephone number and register the grievance. Subscriber has to authenticate themselves through the use of T-pin allotted to raise the grievance. On successful registration of grievance, a token number will be allotted by the Customer Care representative for any future reference.

Physical forms:
Subscriber can also submit the grievance in a prescribed format to the POP – SP. Subscriber has to mention the PRAN as the means of authentication on the form. Upon submission of form to the POP-SP, Subscriber will get an acknowledgement receipt. The token number would be emailed to you by NSDL-CRA (if the email id is mentioned), otherwise the same will be emailed to the concerned POP-SP. Subscriber can get the token number from the POP-SP against the acknowledgement receipt.

2. To whom I need to contact in case of any queries/to get information related to NPS?

Getting access to the information related to NPS is very easy and convenient. You may get in touch with any of the below mode available:

  1. NSDL-CRA website:
    You may visit NSDL-CRA website (www.npscra.nsdl.co.in) wherein you will find information specific to the sectors under NPS. All the sectors have detailed Answers of all the FAQs associated with Subscriber as well as intermediaries. In case, you have any specific query related to NPS, you can post the same to “Log Your Grievance / Enquiry” section under “Subscriber’s Corner” available on this website. You will get the response within
  2. Access to Interactive Voice Response (IVR):
    Existing subscriber can access the Interactive Voice Response (IVR) to get various details such as, balances, scheme preference ratio, withdrawal details etc.
  3. Facebook page of NSDL-CRA:
    You can like NSDL-CRA NPS page on Facebook at www.facebook.co/nps.NSDL to get information, recent articles relevant to NPS.
  4. Subscriber Awareness Program:
    NSDL-CRA also conducts Subscriber Awareness Program (SAP) for existing as well as prospective Subscriber of NPS.To know more about NPS and it’s features and recent development you can attend the SAP in your city. You may find the list of proposed SAPs at “Upcoming Events” section on home page of this website. You may also bring your friends, relatives or colleagues for attending the program. Admission is free for all in program.
    In case you want to have a SAP in your city, you may request the same by visiting “Awareness Program” section under “Subscriber’s Corner” available on this website.
3. How will the grievance get resolved?

Whenever a Subscriber raises a grievance, a system generated alert goes to the entity against which the grievance is raised. The respective entity then resolves the grievance and post resolution details in CRA system.

4. How will the Subscriber know the status of the grievance lodged?

When a Subscriber registers a grievance at the CRA website, a unique token number is assigned to each and every grievance. Subscriber can use that token no. to know about the status of the grievances either through the Call Center or through the CRA website. Please visit “Log Your Grievance / Enquiry” section under “Subscriber’s Corner” to check the status of the grievance lodged.

5. What is the escalation mechanism for Grievance resolution?

Escalation Matrix for Grievance redressal – Only for NPS, related to queries/complaints is given at the “Contact Us” section of this website. However, Subscriber has to follow the process given in Question no. 1 of this section to get grievance registered. For details of Grievance Redressal Policy for Central Recordkeeping Agency under National Pension System, please visit “Grievance Redressal Policy” located at “Log Your Grievance / Enquiry” section under “Subscriber’s Corner” of this website.

6. What are the options available for the Subscriber if not satisfied with the resolution of grievance?

Subscriber can approach, Ombudsman appointed by PFRDA if he / she is not satisfied with the resolution of grievance. The details of Ombudsman appointed are available on PFRDA website (www.pfrda.org.in).

At present, Shri Vinod Kumar Pande has been appointed as the Stipendiary Ombudsman in terms of PFRDA (Redressal of Subscriber Grievance) Regulations, 2015.

Address:
C/o Pension Fund Regulatory and Development Authority,
Plot No-14/A, Chhatrapati ShivaJi Bhawan,
Qutab Instititional Area,

Exit / Withdrawal under National Pension System (NPS)

1. How “Exit” is defined under NPS?

An exit is defined as closure of individual pension account of the subscriber under National Pension System.

2. When can a Subscriber exit from NPS?

As per PFRDA (Exits & Withdrawals under NPS) Regulations 2015, in following conditions Subscriber can exit from NPS:

  1. Upon Superannuation – When a subscriber reaches the age of Superannuation/attaining 60 years of age, he or she will have to use at least 40% of accumulated pension corpus to purchase an annuity that would provide a regularmonthly pension. The remaining funds can be withdrawn as lump sum.
    If the total accumulated pension corpus is less than or equal to Rs. 2 lakh, Subscriber can optfor 100% lumpsum withdrawal.
  2. Pre-mature Exit – In case of pre-mature exit (exit before attaining the age of superannuation/attaining 60 years of age) from NPS, at least 80% of the accumulated pension corpus of the Subscriber has to be utilized for purchase of an Annuity that would provide a regularmonthly pension.The remaining funds can be withdrawn as lump sum.However, you can exit from NPS only after completion of 10 years.
    If the total corpus is less than or equal to Rs. 1 lakh, Subscriber can optfor 100% lumpsum withdrawal.
  3. Upon Death of Subscriber – The entire accumulated pension corpus (100%) would be paid to the nominee/legal heir of the subscriber.
3. What options for exit from NPS are available for Subscriber at the time of Superannuation/at the age of 60?

Subscriber can decide to remain invested in NPS (Up to 70 years) or can exit from NPS.Following options are available to NPS Subscribers:

  1. Continuation of NPS account:
    Subscriber can continue to contribute to NPS account beyond the age of 60 years/superannuation (Up to 70 years). This contribution beyond 60 is also eligible for exclusive tax benefits under NPS.
  2. Deferment (Annuity as well as Lump sum amount):
    Subscriber can defer Withdrawal and stay invested in NPS up to 70 years of age. Subscriber can defer only lump sum Withdrawal, defer only Annuity or defer both lump sum as well as Annuity.
  3. Start your Pension:
    If Subscriber does not wish to continue/defer NPS account, he/she can exit from NPS. He/she can initiate exit request online and asper NPS exit guidelines start receiving pension.
4. Where shall I find the withdrawal forms? What are the different types of Withdrawal Forms?

You can find the withdrawal form of respective sector from “Form” section available on this website. Based on the different types of Withdrawal request, following forms are made available:

  1. Superannuation
  2. Premature
  3. Death
5. What is an Exit Claim ID and what is its relevance?

For any superannuating subscriber/subscriber attaining 60 years of age, CRA generates a Claim ID six months prior to the date of superannuation or 60 years of age. CRA intimates the generation of Claim ID to the subscriber vides e-mails, letters, SMS.

In case of Superannuation, CRA generates a Claim ID six months prior to the date of superannuation or 60 years of age. Claim ID is intimated to the subscriber vides e-mails, letters, SMS. Intimation of claim ID enable Subscriber six months before to make any changes (like DOB, address etc.) in his/her NPS account before initiating withdrawal request. Withdrawal request cannot be raised without generation of Claim ID.

In case of Pre-mature Exit, the Subscriber needs to contact the POP for generation of Claim ID for Withdrawal of NPS funds. Generation of Claim ID is not required if Withdrawal request is initiated by POP.

Generation of Claim ID is not required to process death online Withdrawal request. POP can directly raise the Withdrawal request for death cases.

6. How can I initiate the Withdrawal request in CRA system?

Subscriber can initiate Online Withdrawal request through their NPS account log-in. Such request needs to be verified and authorized by the associated POP. In case Subscriber is not able to initiate online Withdrawal request, he or she needs to submit the physical Withdrawal form along with the required documents to the POP. Based on Subscriber’s request, POP will initiate the online Withdrawal request on behalf of the Subscriber.

For details of steps to be followed, you may go through the “Self running Demo” of “withdrawal process for Non-Government Subscriber” available in “Knowledge Centre” section under “Subscriber Corner” on this website.

7. What are the documents required in case of Superannuation & Pre-mature Exit?

Following documents are required to be submitted alongwith the duly filled Withdrawal form for Superannuation & Pre-mature Exit:

  1. Original PRAN card
  2. Advanced stamped receipt, to be duly filled and cross-signed on the Revenue stamp by the Subscriber.
  3. KYC documents (address and photo-id proof)
  4. ‘Cancelled Cheque’ (having Subscriber’s Name, Bank Account Number and IFS Code) or ‘Bank Certificate’ on Bank Letterhead having Subscriber’s name, Bank Account Number and IFS Code required to be submitted as bank proof. ‘Copy of Bank Passbook’ can be accepted, however, it should have Subscriber’s photograph, Name and IFS Code on it and should be self-attested by the Subscriber.
  5. “Request Cum Undertaking” form if eligible for complete Withdrawal.

After submitting required documents, POP will authorize the Withdrawal request.

8. Can I claim 100% Withdrawal in case of Superannuation and Pre-mature Exit?

Yes, a subscriber can claim withdrawal in following cases:
In case of Superannuation- A Subscriber can claim 100% Withdrawal if the total accumulated corpus is less than or equal to Rs. 2 Lakh at the time of Superannuation/attaining age of 60 years.

In case of Pre-mature Exit- If total accumulated corpus is less thanor equal to Rs. 1 Lakh, the Subscriber can avail the option of complete Withdrawal. However, you can exit from NPS only after completion of 10 years.

9. Can I withdraw some amount during my tenure in NPS and still continue to subscriber to my NPS Account?

Yes, NPS Subscriber can withdraw certain amount out of his own contribution. It is considered as partial withdrawal under NPS, for Conditions of partial Withdrawal, please refer question no. 10.

10. What are the conditions for Partial Withdrawal?

Following are the conditions of Conditional Withdrawal:

  1. Subscriber should be in NPS atleast for 3 years
  2. Withdrawal amount will not exceed 25% of the contributions made by the Subscriber
  3. Withdrawal can happen maximum of three times during the entire tenure of subscription.
  4. Withdrawal is allowed only against the specified reasons, for example;
    • Higher education of children
    • Marriage of children
    • For the purchase/construction of residential house (in specified conditions)
    • For treatment of Critical illnesses
11. How can the Partial Withdrawal be processed?

Partial withdrawal request can be initiated online by Subscriber. Alternatively, Subscriber can submit physical partial withdrawal form (601-PW) along with documents to POP, based on which POP can initiate online request.. However, POP is required to ‘Authorize’ the Withdrawal request in CRA system.

12. What are the documents required from nominee/claimant in the case of Withdrawal request due to death of the subscriber?

Following documents are required to be submitted from the nominee/claimant along with the completely filled Withdrawal forms:

  1. Original PRAN card
  2. Advanced stamped receipt to be duly filled and cross-signed on the Revenue stamp by the Claimant.
  3. KYC documents (address and photo-id proof)
  4. ‘Cancelled Cheque’ (having claimant’s Name, Bank Account Number and IFS Code) or ‘Bank Certificate’ on Bank Letterhead having claimant’s name, Bank Account Number and IFS Code required to be submitted as bank proof. ‘Copy of Bank Passbook’ can be accepted, however, it should have claimant’s photograph, Name and Bank IFS Code on it and should be self-attested by the claimant.
  5. Original Death Certificate issued by the Registrar of birth and death

After obtaining required documents, POP needs to capture the online Withdrawal request. Once authorized by the checker ID, POP will send the Withdrawal form & supporting documents with covering letter to CRA for storage purpose.

13. How the death cases wherein multiple nominees are registered handled in NPS?

Such Withdrawal request will be processed as per below mentioned scenario:

  1. Withdrawal form needs to be submitted by all the nominees registered in CRA system.
  2. If any nominee/s doesn’t not want to claim the NPS corpus:
    1. Relinquishment deed (on Rs 100 stamp paper, notorised) is to be submitted by the nominee/s who doesn’t want to claim the NPS benefits.
    2. Indemnity Bond (on Rs 100 stamp paper, notorised) is to be submitted by the nominee who is claiming the NPS benefits.
  3. In case one nominee is a major and other is a minor,
    1. Major nominee will submit Withdrawal form.
    2. Guardian (on behalf of minor) will submit the Withdrawal form along with the birth proof of the minor.
14. How does the Subscriber/Claimant receive the Withdrawal proceeds?

The Withdrawal proceeds are credited in Subscriber/Claimant bank account (as per the bank details provided at the time of initiating online Withdrawal request) through electronic mode only.

15. How Subscriber can check the status of Withdrawal request?

Subscriber can check Withdrawal status as per below mentioned option:

  1. Subscriber can check through the ‘Limited Access View’ (Pre Login) functionality which is available at home page of CRA website (www.cra-nsdl.com).
  2. Subscriber can also check the status under the menu ‘Exit Withdrawal Request’>>’Withdrawal Request Status View’ through their NPS account log-in.
16. What is Annuity?

In the context of NPS, Annuity refers to the monthly sum received by the Subscriber from the Annuity Service Provider (ASP). A percentage of the pension wealth as decided by the Subscribers (minimum 40% & 80% in case of Superannuation & Pre-mature Exit respectively) is utilized for purchase of Annuity from the empanelled Annuity Service Providers.

17. Who are the Annuity Service Providers?

Annuity Service Providers (ASPs) are responsible for providing a regular monthly pension to the Subscriber after exit from the NPS. These ASPs are basically Insurance Regulatory and Development Authority (IRDA) regulated Insurance companies which are empanelled by PFRDA to provide Annuity services to the NPS Subscribers. For more details about ASPs, please visit “Annuity Service Provider” section on this website (link given at home page under “Important Links”).

18. In case of pre-mature exit, when shall the pension starts?

In case of pre-mature exit, pension starts immediately, if Subscriber fulfils the Age and Corpus criteria for purchasing Annuity (depending upon choice of ASP and Annuity scheme of the respective Annuity Service Provider).

19. What are Annuity Schemes available under NPS?

Following schemes are available with ASPs under NPS:

  1. Annuity for life– On death of the annuitant, payment of Annuity ceases.
  2. Annuity for life with return of purchase price on death– On death of the annuitant, payment of Annuity ceases and the purchase price is returned to the nominee
  3. Annuity payable for life with 100% Annuity payable to spouse on death of annuitant– On death of the annuitant, Annuity is paid to the spouse during life time. If the spouse predeceases the annuitant, payment of Annuity will cease after the death of the annuitant.
  4. Annuity payable for life with 100% Annuity payable to spouse on death of annuitant with return on purchase of Annuity– On death of the annuitant, Annuity is paid to the spouse during life time and purchase price is returned to the nominee after the death of the spouse.
20. From where shall I get the tentative pension amount offered by ASPs.

The pension amount can be calculated based on indicative annuity rates (subject to change from time to time) provided by ASPs. However, the actual annuity amount will depend on the prevailing rates at the time of purchase of annuity. You may visit “Annuity Service Provider (ASP)” page on our website to get the tentative pension amount. Alternatively, you may also visit the respective ASP’s website to the tentative pension amount.

21. Can Subscriber change Annuity Service Provider or Annuity type after buying the Annuity?

Once an Annuity is purchased, the option of cancellation or reinvestment with another Annuity Service Provider or in other Annuity scheme shall not be allowed unless the same is within the time limit specified (free look period as provided in terms of the Annuity contract or specifically provided by the IRDA) by the Annuity Service Provider.

22. Can a Subscriber withdraw lump sum amount in phased manner?

Facility of phased Withdrawal is available for NPS Subscribers. Subscriber can opt for withdrawal of lump-sum amount in a phased manner (up to 10 instalments) over the period from 60 years (or any other retirement age as prescribed by the employer) to 70 years. However, Subscriber has to buy Annuity prior to Phased Withdrawal.

23. Can a Subscriber exercise deferment option after opting for continuation of NPS account?

No, Subscriber can’t exercise the option of deferment (lump-sum and Annuity) after obtaining the continuation option.

24. Can Subscriber continue tier-II account, in case of continuation of Tier-1 account?

Yes, Subscriber can continue Tier-2 account till the time Tier-1 account is active.

25. What will happen to my Tier II contribution, in case closure of Tier I account?

Your Tier II account will also close once you request for closure of Tier I account. Units under Tier II account will be redeemed and amount will be transferred to your given bank account.

26. What are the Tax implications for withdrawal executed from Tier-1 account?

For queries related to tax benefits under NPS, please refer questions on “Tax Benefit under NPS” of this FAQs section.

Source- NSDL

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One response to “National Pension System – Complete Guide”

  1. Gyati says:

    It is such a comprehensive article. Great work 🙂

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