Who is eligible for National Pension Scheme?

The objective of the National Pension Scheme is to provide all citizens of India with regular old-age income and improve social security in the country. The scheme is open to central government, state government or private sector employees, as well as self-employed professionals. 

Any resident or non-resident Indian citizen between 18-65 years of age can open an NPS account. NPS account maintained by a non-resident Indian (NRI) is subject to regulatory requirements prescribed by the Reserve Bank of India (RBI) and the Foreign Exchange Management Act, 1999 (FEMA).

What is the NPS?

The National Pension Scheme (NPS) is a voluntary retirement savings plan that helps you accumulate wealth for retirement and ensure a monthly pension in old age. The scheme is sponsored by the government of India and regulated by the Pension Fund Regulatory and Development Authority (PFRDA).

NPS has low maintenance costs and offers high accumulated returns in the long-term. Combined with the reliability of a government sponsored scheme, tax savings and flexibility to switch funds, it is one of the best savings plans to enjoy a secured retirement life, especially for those in the private sector.

When you secure your retirement with an NPS account at Finserv MARKETS, you are assured of 100% transparency from entry to exit day. An NPS account at Finserv MARKETS helps you fulfil your dream of living a comfortable retirement life with high returns, host of tax benefits and regular income.

NPS Eligibility Norms

Apart from fulfilling the eligibility norms of opening and maintaining and NPS account, you may have other questions and concerns regarding NPS eligibility. The following FAQs and guide will help you allay your NPS concerns:

Can I open an NPS account if I have already invested in a provident fund or other pension plan?

Yes. Whether you have investment in a PPF or your contributions are going towards EPF, or a pension plan from a private entity, you can still open an NPS account.

What are the documents required to open an NPS account?

You need the following documents to open an NPS account at Finserv MARKETS:

  • Proof of identity (PAN card/Aadhar card/Passport/ Driving License/ Voter ID)

  • Proof of address (Aadhar Card/Passport/Driving License)

  • Proof of age or date of birth

  • Cancelled cheque (if applicable)

Can I have more than one NPS plan?

No, a single subscriber cannot have multiple NPS accounts. There is no necessity to have multiple NPS accounts because the account can be easily ported across different employers, sectors and locations.

How often can I switch between investment schemes and Pension Fund Managers (PFMs) in a year?

NPS allows subscribers to change their investment asset classes between equities, government securities, corporate bonds and alternate funds. You can also change your investment option from Active to Auto or vice versa.

You get the choice to change your Pension Fund Manager once in a financial year. Investment allocation changes can be made not more than twice in a year.

Portability Norms for NPS Accounts

Portability is one of the unique benefits of NPS accounts compared to other pension and annuity plans. You can operate an NPS account from anywhere in the country irrespective of the employer sector or location.

You can also port across sectors. For instance, you can move to a government sector from a private sector and still use the same NPS account. You may have landed a central government job from your previous state government job, yet you can use the same PRAN to make contributions to your pension or retirement fund.

Minimum Contribution for NPS

To keep your National Pension Scheme active, you need to meet minimum annual contribution requirements. The following table explains the minimum annual contribution under the All Citizens* model.

*Under All Citizens model, any individual, irrespective of whether the individual is working under the state, central or private sector; salaried or self-employed, is eligible to open an NPS account.

Minimum contribution under All Citizens model

Conditions

Tier I

Tier II

Minimum contribution at the time of account opening

Rs. 500

Rs. 1000

Minimum amount per contribution

Rs. 500

Rs. 250

Minimum total contribution in the year

Rs. 1000

-

Minimum frequency of contributions

1 per year

-

Source: NPS Trust

Who is a POP/POP-SP and what is their role?

Points of Presence (POPs) are the first point of interaction for the NPS subscriber in the NPS architecture. The authorized branches of a POP, called Points of Presence Service Providers (POP-SPs) acts as collection points and extend a number of customer services to NPS subscribers including requests for withdrawal from NPS.

How will I know about the status of my PRAN application form?

Subscriber can check the status by accessing NSDL-CRA website using the 17 digit receipt number provided by the POP service provider. Once the PRAN is generated, email and SMS alerts are sent to the subscriber.

Is it compulsory to select an annuity service provider (ASP) at the time of retirement or premature exit from the pension fund?

Yes, it is compulsory for NPS subscribers to purchase an annuity product from empanelled ASPs at the time of retirement or premature exit. The subscriber must select the ASP at the time of submitting the withdrawal request or after the payment of lump sum withdrawal.

Steps to open an NPS account at Finserv MARKETS

The PFRDA has eased the process of opening an NPS account online. At Finserv MARKETS, NPS account opening is fast and easy. To open an NPS account online, you need a mobile number, email id and your bank account details.

Finserv MARKETS is authorized by the PFRDA as a POP to facilitate the opening and operation of online NPS accounts.

Please follow the below steps to open an NPS account with Finserv MARKETS:

  • Click Apply, and enter your mobile number

  • Enter the OTP sent to your mobile number to login to the site

  • Enter your personal and net banking details

  • Select portfolio allocation among the four available funds

  • Provide nominee details

  • Upload a cancelled cheque of the bank account you have provided above

  • Upload your photograph, KYC documents and specimen signature

  • Make your first NPS payment

  • Upon successful completion, you will be provided your Permanent Retirement Account Number (PRAN)

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