National Pension: Future Assured

• NPS accounts are primarily of two types, Individual NPS account (All Citizens Model) and Corporate NPS account.

All Citizen Model

• In an Individual NPS account, the subscriber (Account holder) is the only contributor. All selections pertaining to Scheme preference, Investment choice, Annuity Service Provider, etc. are done by the subscriber alone. Any citizen of India can voluntarily choose to open an Individual NPS account to avail tax benefits on investments and to ensure regular income post-retirement. Entry age is from 18 to 70 years.

Corporate Model

• In Corporate NPS account, the subscriber and the employer can both contribute to the subscriber’s NPS account. A corporate entity will have to register for corporate NPS for the employees to be able to avail corporate NPS benefit. Know more about corporate NPS, click here.

• Regulator has appointed multiple agencies for different NPS services to ensure better transparency and efficiency.
• Pension Fund Regulatory and Development Authority (PFRDA) - PFRDA is a regulator for NPS which was set up by the Government of India on August 23, 2003. PFRDA promotes old age income security by establishing, developing and regulating pension funds and protects the interests of subscribers in schemes of pension funds and related matters.  
• NPS Trust - This is the Trust body formed for NPS. It is responsible for taking care of the funds under NPS by prudently monitoring / auditing portfolio of Pension Fund Manager on regular basis to ensure subscriber interests. 
• Central Recordkeeping Agency (CRA) - The regulator PFRDA has appointed K-Fin Technology Private Ltd & NSDL e-Governance Infrastructure Limited to maintain data and records of NPS subscribers. They are responsible for recordkeeping, administration and customer service functions for all subscribers of NPS. 
• Point of Presence (POP) - HDFC Bank Ltd. is registered with PFRDA as a Point of Presence (POP). We are the first point of interaction between You and the NPS architecture. We shall facilitate the subscriber registration, submission of contributions, request for any modification or exit/withdrawal. 

Pension Fund Manager (PFMs) (As on November 21, 2022) -

Your contributions are managed by the PFMs who are appointed by PFRDA and are governed by regulatory guidelines. You have complete flexibility to choose any of the following 10 PFMs:

• Aditya Birla SunLife Pension Management Limited
• Axis Pension Fund Management Limited
• HDFC Pension Management Company Limited
• ICICI Prudential Pension Funds Management Company Limited
• Kotak Mahindra Pension Fund Limited
• LIC Pension Fund Limited
• SBI Pension Funds Private Limited
• Tata Pension Management Limited.
• UTI Retirement Solutions Limited

Annuity Service Providers (ASPs) (As on April 28, 2022) - 
After completion of 60 years of age, you will have option to select Annuity Plans offered by below mentioned Annuity Service Providers appointed by PFRDA :

• HDFC Life Insurance Company Limited
• Life Insurance Corporation of India Limited
• ICICI Prudential Life Insurance Company Limited
• SBI Life Insurance Company Limited
• Star Union Dai-Ichi Life Insurance Co. Ltd
• Bajaj Allianz Life Insurance Company Limited
• Edelweiss Tokio Life Insurance Company Limited
• India First Life Insurance Company Limited
• Canara HSBC Oriental Bank of Commerce Life Insurance Company Limited
• Kotak Mahindra Life Insurance Company Limited
• Max Life Insurance Co. ltd.
• Tata AIA Life Insurance Company Limited
• PNB MetLife India Insurance Co. Ltd

HDFC Bank gives you a platform to invest or contribute in your NPS Account through SIP (Systematic Investment Plan). Systematic Investment Plan (SIP) is an approach which involves investing a set amount at regular intervals rather than investing a larger lump sum amount in one shot.

• Using SIP as a mode of investments makes it simple and hassle free
• SIP allows you the convenience of timely and small investments on a regular basis. Ideal for subscribers looking to invest a specified amount on a regular basis and is lighter on your wallet too
• Helps you plan for your goals better as with the setting up of SIP you no longer will need to make lump sum payments for your NPS account
• SIP helps you reap benefits of the 'Power of Compounding' by investing regularly over a long period of time
• With Rupee Cost Averaging you need not time the market anymore

NPS Vatsalya – Secure your child’s future

Now open an NPS Account for your minor child and secure their future.

• Announced by the Hon’ble Finance Minister in 2024 Budget
• Contributory Pension Scheme regulated and administered by the PFRDA
• The motive of the scheme is to encourage empowerment of children with an ultimate objective of creating a pensioned society
• All minor Citizens up to 18 years of age can join the scheme
• Minimum Contribution for account opening ₹1,000 
  

Features –

• Minor to be sole beneficiary
• Parents Guardians can open account and make contributions in the name of minors
• Seamless conversion into regular NPS Account on completion of 18 years of age
• Choice of Fund Manager and asset allocation
• No limit on maximum contribution
• Tax benefit not applicable on NPS Vatsalya contribution.

Why opt for NPS Vatsalya –

• Long term Financial Security
• Lower Contribution Amounts
• Teaching Financial Responsibility (Concept of Pension Planning)
• Protection Against Uncertainty
• Flexibility in Future Financial Planning
• Encouragement for Long term Investment
• Benefits of Compound Interest

How to open NPs Vatsalya –

• Click on ‘Apply Online’ > select your preferred CRA > Proceed to fill details.
• (CAMS and K-fin Technology will share separate pop up basis applicant Date of Birth to fill Minor’s details. For Protean, please select ‘Applicant type – NPS Vatsalya’)
  

NPS Vatsalya – Continuation and Partial Withdrawal

Upon Attainment of age of 18 Years –

• Seamless conversion into regular NPS Tier 1 Account (All Citizen)
• Fresh KYC of minor within three months
• Upon transitioning, the features, benefits, and exit norms of the NPS Tier I for All Citizen Model will apply

Partial Withdrawal –

• Up to 25% of contribution on declaration basis
• After lock in period of 3 years
• Three times till subscriber attains 18 years of age
• For below mentioned reasons -
  • Education
  • Treatment of specified illnesses
  • Disability of more than 75%
  • Reasons specified by the PFRDA

NPS Vatsalya – Exit

Exit upon attainment of 18 years –

• If Accumulated Corpus >= 2.5 lakh, Min 80% Annuity, up to 20% Lump Sum
• If Accumulated Corpus < 2.5 lakh, up to 100% Lump Sum

Exit on account of Death –

• Death of the minor Entire corpus returned to the Guardian
• Death of the Guardian Another Guardian to be registered through fresh KYC
• Death of both parents Legally appointed guardian can continue without making contributions until subscribers attains 18 years of age

Pension Fund Regulatory and Development Authority of India (PFRDA) has introduced ‘Corporate NPS’ model to enable corporates to offer NPS investment benefit to all employees. This offer is within the purview of their employer – employee relationship.

• Corporates does not bear any administrative or fund management charge while offering NPS to employees
• Trust formation is not required for NPS set up in the company.
• Employees can be added and removed from NPS scheme with a simple process.
• As an employer, you have the option to decide the NPS options for the employees, like percentage contribution, duration of opt in/opt out, etc. You may also choose to offer NPS as voluntary scheme to all employees or a select group of employees.
• NPS is voluntary for private sector and can be run concurrently with any other retirement benefit programme implemented by the corporate
• SA Fund transfer – NPS account holders can transfer their Superannuation funds to their NPS account without any tax implication. (Post relevant authorities' approvals)

Click here to view more details of the Corporate Benefits

You have the option to select fund allocation pattern for your investment across various asset classes vide exercising (i) Active Choice (ii) Auto Choice. 

Active Choice: This option allows you the freedom to design the portfolio by voluntarily distributing investments among 4 asset classes as below:

• Equity (E): This is a 'High risk – High Return' option as the funds are invested in equity Subscriber can choose to invest up to 75% in this asset class.
• Corporate Bonds (C): Funds are invested in fixed income bearing debt instruments.
• Government Securities (G): Funds are invested in Government Securities.
• Alternate Assets (A): Funds are invested in real estate and infrastructure funds.
  Maximum capping is 5% investment since this is an extremely risky investment.

Auto Choice- Life Cycle Fund: In case 'Active Choice' as described above is not selected, the contribution funds will be invested in a pre-defined proportion depending on your age. The exposure will be higher in equity at a younger age and will be moderated progressively to get a balance among high, medium and low risk investment.

Fees & Charges

NPS has one of the lowest service charges among similar investment products. These charges are regulated by PFRDA.

NPS Service Charges (HDFC Bank - POP Charges)

• New NPS Account Opening: ₹400 (collected upfront)
• Financial Transactions: 0.50% of the transaction amount or ₹30 (whichever is higher), capped at ₹25,000.
• Non-Financial Transactions: Flat ₹30 per transaction.

*KYC verification charges of eNPS application ₹125 + taxes

*Processing of Exit / Withdrawal @0.125% of Corpus with Minimum ₹125/- and Max ₹500/-

other taxes / regulatory levies applicable from time to time.

 Click here to view more details of the fees and charges.

Please refer to the following T&C for NPS:

• HDFC Bank only facilitates NPS Account opening by subscribers. Participation by customers for registration of National Pension System (NPS) is purely voluntary.
• HDFC Bank shall not be liable for any disputes with respect to the services provided by Central Recordkeeping Agencies “Protean eGov Technologies Limited” and "K-Fintech" to customer.
• While filling details for PAN based registration on HDFC Bank's website, all KYC details must be filled as per Bank records. In case of details in NPS and Bank do not match, the KYC authorization will be declined.
• On rejection of KYC authorisation, subscriber will have to re-apply with correct details or get form and documents verified by Bank Branch and send to CRAs
• If the minimum annual contribution is not done for Tier 1 or Tier 2 accounts, the accounts are 'freezed' as per guidelines. Funds cannot be transferred from Tier 1 to Tier 2 accounts.
• An incomplete enrolment will be available for completing later basis the acknowledgement ID. However, the ID will be active only for 15 days.
• Any Indian Citizen, OCI, NRI between the age of 18 to 70 years can register for NPS account as per PFRDA.
  -You cannot have multiple NPS account. If your existing account is not accessible due to any issue, please contact your POP for resolution. 
  

-  On clicking on any NPS application link on HDFC Bank website, you will be redirected to the selected CRA’s portal. This facility is provided only for the convenience of the customer and HDFC Bank shall not be liable for any disputes with respect to the said service provided by the selected CRA (Protean eGov Technologies Limited or K-Fin Technologies Pvt. Ltd.) to the customer.