| NPS Account opening Contribution: | ||
|---|---|---|
| Particulars | Tier I | Tier II |
| Minimum contribution required at the time of account opening. | ₹500 | ₹1000 |
| Minimum subsequent contribution amount required | ₹500 | ₹250 |
| Minimum contribution required per year. | ₹1000 | NIL |
| Minimum number of contributions required in a year. | 1 | NIL |
National Pension eligibility criteria
The National Pension System (NPS) enrolment process allows subscribers to apply online conveniently from their home or office. The scheme aims to offer all Indian citizens a secure long-term savings option for retirement planning, ensuring competitive returns based on market performance. Individuals aged between 18 to 60 years can open an account under this scheme.
Steps to open an NPS account online:
Click on the 'Apply Now' option for NPS enrolment.
Fill out the online form with mandatory information.
A receipt number for subscriber registration will be generated, allowing completion of registration later using the receipt number search.
Complete e-KYC verification through Aadhaar OTP authentication.
Enter additional details such as bank information, scheme preferences, and nominee details.
Upload a photograph and signature (along with Cheque and PAN for Tier II accounts).
Specify the contribution amount and proceed to payment.
Make the payment through HDFC Bank NetBanking on the online payment platform.
- Upon successful payment, the subscriber will receive a PRAN (Permanent Retirement Account Number) and can save the generated PDF form for reference.
Frequently asked questions
Under the NPS, the lock-in period refers to the minimum period for which investments are held before they can be withdrawn. For Tier-I accounts, which are primarily meant for retirement savings, there is a lock-in period until the subscriber reaches the age of 60. Partial withdrawals are allowed under specific conditions like higher education, medical treatment, or housing, but these are subject to limits and terms set by the Pension Fund Regulatory and Development Authority (PFRDA). Tier-II accounts, on the other hand, do not have a lock-in period and offer more flexibility as they allow withdrawals as per the subscriber's discretion.
Eligibility to invest in the National Pension System is open to all Indian citizens between the ages of 18 to 60 years. This includes individuals from various categories such as salaried employees, self-employed individuals, and even Non-Resident Indians (NRIs), subject to certain conditions. Additionally, Hindu Undivided Families (HUFs), partnership firms, companies, and trusts can also participate in NPS. The scheme aims to provide a structured avenue for long-term savings, particularly focused on retirement planning, offering market-based returns through a diversified investment portfolio. NPS subscribers can enrol conveniently online, ensuring broad accessibility across different segments of the population.
Under the National Pension System, the duration of pension payments depends on the choice made by the subscriber at the time of retirement. Upon reaching the age of 60, subscribers have the option to withdraw up to 60% of their accumulated corpus as a lump sum, while the remaining 40% must be used to purchase an annuity from an insurance provider. The annuity provides a regular pension income to the subscriber for the remainder of their life. The amount of pension received is determined by the type of annuity chosen and prevailing market rates at the time of purchase, ensuring financial security throughout retirement.