Tier 1 account mandatory to join NPS
Investment is locked-in until the age of 60.
Withdrawals are conditional.
Tax benefits can be claimed.
Only Tier-I account holders can open it.
No Lock-in period on investment.
Flexible Withdrawal & Exit Rules.
No Tax Exemptions on Contributions.
A government sponsored retirement savings scheme
Regulated by Pension Fund Regulatory and Development Authority (PFRDA)
Allows regular contribution to a pension fund during working life
Subscribers choose from Equity and Fixed Income funds to grow savings
On retirement, a part of the corpus can be withdrawn in lump sum
Balance corpus is invested in an annuity plan to secure regular income
Open your NPS Account digitally in less than 20 minutes
Start with just ₹ 1000 per annum through Lumpsum or SIP
Seamlessly transfer pension account across jobs and location
Annual fees on investment less than 0.09%
Mix of Equity and Debt offers higher return than traditional retirement schemes
Lock-in till 60 years ensure subscribers remain invested for a long period of time.
For Salaried Individuals
Category | Section | Investment Limit |
---|---|---|
Own Contribution | 80 CCD (1) | 10% of Salary (upto 1.5 lakh)* |
Additional Contribution | 80 CCD (1B) | ₹50,000 |
Employer Contribution | 80 CCD(2) | 10% of Salary (upto 7.5 lakh)# |
For Self Employed Individuals
Category | Section | Investment Limit |
---|---|---|
Own Contribution | 80 CCD (1) | 20% of Gross Annual Income (upto 1.5 lakh)* |
Additional Contribution | 80 CCD (1B) | ₹50,000 |
Under Active Choice, subscribers get the flexibility to decide allocation mix across 4 asset classes
Under Auto choice, funds are invested across asset classes as per a pre-defined portfolio. Subscribers get to choose from Aggressive, Moderate and Conservative allocation. As a subscriber approaches retirement, exposure to more risky investments reduce automatically.
* Expected Maturity Amount for an investment of₹10,000 per month for 30 years
Exit at Maturity (60 years)
Exit on Death
Pre-mature exit
Partial Withdrawal
Point of Presence (PoP) charges
Charge Head | Charges | ||||||||
---|---|---|---|---|---|---|---|---|---|
Account Opening | ₹ 200 | ||||||||
Contribution Processing | 0.50% subject to min ₹ 30 and max ₹ 25000 | ||||||||
Non-Financial Transaction Processing | ₹ 30 | ||||||||
|
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Applicable for subscribers (except corporate NPS) active for more than 6months with a POP. |
Pension Fund Manager (PFM) Charges
AUM Slab (in Cr) | PFM charges % for the Slab |
---|---|
Upto ₹ 10,000 | 0.09% |
₹ 10,001 to ₹ 50000 | 0.06% |
₹ 50,001 to ₹ 1,50,000 | 0.05% |
₹ 1,50,001 and Above | 0.03% |
* UTI Retirement Solutions Ltd charges a fee of 0.07% under this slab. |
Central Record Keeping Agency (CRA) Charges
Charge Head | Kfintech | NSDL |
---|---|---|
PRAN Generation | ₹ 39.36 | ₹ 40.00 |
Annual Maintenance | ₹ 57.63 | ₹ 69.00 |
Financial Transaction processing | ₹ 3.36 | ₹ 3.75 |
Other Intermediaries Charges
Intermediary | Charge Head | Charges (Annual) |
---|---|---|
Custodian | Custodian Fee | 0.0032% p.a |
NPS Trust | Reimbursement of Expenses | 0.005% p.a |
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