NPS , New Pension Scheme , A detailed Explaination

Today we will be talking about the “New Pension Scheme” Launched by Govt. of India.

What is NPS ?

Its a pension system recently launched by Govt of India from 1st April, 2009.. You can regularly invest your money in this and get a lump sum at your retirement and a fixed monthly income for the lifetime . It will work almost the same way as Private Pension Schemes .

Until now the pension schemes was available to Govt employees and employees of Big companies who has Provident fund facility . Any other person had to go with Private Pension schemes provided by Insurance Companies . IT as not a govt scheme for common person , With NPS now its a common person gateway to Pension Schemes .

Read previous post which was a guest post by Nooresh Merani on “How does a day trader looks like”


Features

– No upper limit of Investment
– Minimum limit of 6,000 per year (Rs 500 per month).
– Annual Fees of .00009% (90 paisa for Rs 10,000) for Manging the fund.
– Tax benefit under sec 80C .
– Any Indian citizen between 18 and 55 years can invest in NPS .

Read other details below .

NPS Bodies

Regulator : The one who will regulate the NPS System .
– Fund Managers : Who will invest the money
– Point of Presence : Responsible for Sales and Marketing .
– Central Record Keeping Agency : Responsible for all the document Keeping work (Record Keeper)

Lets see each of them In detail now .

Who will Regulate NPS ?

PFRDA (Pension Fund Regulatory and Development Authority) will monitor and regulate all the activities under NPS . It checks how your money in invested and makes sure that the fund managers are following the rules and guidelines . Its just like “SEBI for Stock Market” .

Who are the Fund Managers ?

There will be 6 Fund houses appointed by Government to manage the funds under NPS . You can choose any one of them to be your Fund Managers . They are :

1. SBI Pension Funds Private Limited.
2. UTI Retirement Solutions Limited.
3. ICICI Prudential Pension Funds Management Company Limited.
4. Religare Pension Fund Limited.
5. IDFC Pension Funds Management Company Limited.
6. Kotak Mahindra Pension Fund Limited.

They will take all the decisions of where the money received under NPS should be invested in the best possible way considering all the rules and regulations set by PFRDA .

Who are Point of Presence ?

The following entities have been approved by PFRDA for appointment as Points of Presence (POPs) under the New Pension System for all citizens other than Government employees covered under NPS .


1. Allahabad Bank
2. Axis Bank Ltd
3. Bajaj Allianz General Insurance Co Ltd
4. Central Bank of India
5. Citibank N.A
6. Computer Age Management Services Private Limited
7. ICICI Bank Ltd
8. IDBI Bank Ltd
9. IL&FS Securities Services Ltd
10. Kotak Mahindra Bank Limited
11. LIC of India
12. Oriental Bank of Commerce
13. Reliance Capital Ltd
14. State Bank of Bikaner & Jaipur
15. State Bank of Hyderabad
16. State Bank of India
17. State Bank of Indore
18. State Bank of Mysore
19. State Bank of Patiala
20. State Bank of Travancore
21. The South Indian Bank Ltd
22. Union Bank of India
23. UTI Asset Management Company Ltd


Who will be the CRA ?

As per the website of PFRDA there is a Contact of negotiation is underway and NSDL is expected to be appointed as the CRA . there were other bodies too who wanted to be CRA , but the most suitable of all is CSDL . You can see them as the back office for maintaining records , administration and customer service functions .


What are the Steps of Investment ?

1.
Visit a point of presence (PoP), fill up the prescribed form with the required documents.

2. Once registered , CRA will send you a Permanent Retirement Account Number (PRAN) . This will be unique to every person .

3. Select your Amount and Investment Option .

Investment Options and Structure

Structure wise they are very similar to ULIP’s or ULPP’s from Investment Point of View . You have different kind of funds options with different exposure to –

– Equity Instruments
– Corporate Debt
– Fixed Income Instruments
– Govt Securities.

Different Options

– Risky option : The higher allocation in this option will be in Equity .
To decrease the risk , Equity Investment is allowed only to invest in Index funds which tracks Sensex or Nifty . Also the equity exposure is caped at 50% .

– Moderate : IN this options Main exposure would be Corporate debt and Fixed income securities with some exposure in Equity and Govt securities . It will be moderately risky and rewarding .

– Safe : In this option mainly the investment will be done in Govt securities , and very little will be invested in Equity .

There will be a Default option , under which the allocation will be decided as per your age, where Equity Allocation will be high in the start and then it will come down as your age increases . You can also decide your own asset allocation as per your Risk appetite

Cost

There are different kind of Costs in NPS .

– Fund management charges of .0009% per Annam , which is excellent if compared to ULPP’s or Mutual funds charges .

– Annual Maintenance charges of Rs 350 and Rs 10 per transaction to CRA (soon , it will be Rs 280 per year , Rs 6 for per transaction) .

– Rs 40 for registration with PoP and Rs 20 per transaction with them .

– There are other small costs too , lets leave it for now .

Taxation Issue

Sadly , As per the current law , the amount received at the end from NPS would be taxable , PFRDA is trying hard with govt to exempt the tax . You will get the 80C benefits on the amount invested in NPS .

UPDATE May 3 , 2009

“Under following circumstances your account may be closed before attaining retirement age?

– death
– account value reduces to zero
– change in citizenship status.

Thanks to Viral for bringing up this point

Read NPS FAQ here



Conclusion

As per my views , Its a good initiative from Govt to introduce a Pension Scheme which will give common people a chance to invest in Pension schemes which is from Govt . One important thing to understand and note is that Even though its a pension scheme , the returns are not guaranteed . It can vary drastically depending on your asset allocation and how you choose the fund options .

Other Negative point at this point is that the amount recieved at the end would be taxable which can have adverse affect on the return potential . But I am sure soon govt will make the final amount receieved non-taxable .

Currently I dont rate it at par with PPF or EPF . At this point it would be wise to invest money in this if you have any money left over after your PPF and EPF contribution . Waiting for somemore time before taking a call on this would be worthwile . Overall NPS passes :)

Question for you

– Are you personally impressed by NPS and will you invest in NPS ?
– What else govt can make changes in NPS to make it attractive to you ?

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330 CommentsAdd Comment

  1. rajnish kumar

    hye manish, i am a govt employee and joined on 06-09-2004. for us already NPS exit which is 10% of (basic pay + DA) everymonth.govt will contribute same amount everty month. can i see online how much total contribution worth as of now. ???if yes where and what is the procedure. ???? is return generated from MF is Taxable in long run( 25years + )

  2. viral jani

    PFRDA site has given following information about death of PRAN holder.
    the amount can be disbursed as pension to SPOUSE of PRAN holder.
    but what about corpus left after death of spouse.
    will that be given to family members especially children as lump sum or on a monthly pension format?
    there is no clear answer for this.

  3. Manish Chauhan

    @Rajnish

    I dont think its NPS for you . It must be normal providend scheme of Govt like EPF . You need to clear this with your Department where you work , They must be able to give you details of where can you see the amount accumulated till now .

    Returns from Equity Mutual Funds are not taxable after 1 yr . So if you get any profit after 1 yr in Equity mutual funds , its all yours as per current laws .

    Manish

  4. Manish Chauhan

    @Viral

    Under following circumstances your account may be closed before attaining retirement age?

    – death
    – account value reduces to zero
    – change in citizenship status.

    Currently the whole picture is still fuzzy on many aspects for NPS , the biggest of them is the tax on the maturity amount .

    It would be wise to wait for some time before Entering it .

    Manish

    • Prasad

      Manish,
      Do you have anyupdates for Viral questions?
      What happens to the corpus after the death of the spouse?

      Thanks

  5. Sachin

    Manish,

    Nice and brief article on NPS.
    But you missed one point.
    Tier-I and Tier-II.

    I case of Tier-I, we cannot withdraw the amount, whereas in case of Tier-II we can withdraw the amount.

    Tier-II is still not rolled out, but will be launched soon.
    Overall your article is good as usual.

    Sachin

  6. Sachin

    Also one more point, For Govt employees, Govt will also pay the same amount along with their employees to the NPS corpus.

    But this is not the case for Private employees. Private companies need not pay anything. And I am sure that no private company will follow the path of paying towards this scheme for their employees.

    So for Govt employees this is good scheme, but for private employees this is ok scheme.

    Sachin

  7. Manish Chauhan

    Sachin

    Thanks for the comments and valuable additions . I was actually not aware of these points. I am glad you mentioned these points .

    The reason govt employees may get extra from govt is that govt is employer to them and not to private people. Private company employees get EPF contribution from there employers . So this time its govt employees chance :)

    overall still one should wait for more clarity in NPS .

    Manish

  8. apk

    Some more additions:

    Charges
    ———
    1. Entry load -> Rs 50 deducted from fund value as account opening charge. Rs 40 deducted as initial registration charge.

    2. Recurring Load:
    You can opt for either fixed charges or variable charges if my understanding is correct.
    Fixed charges: Rs 350 and Rs 10 deducted as CRA charges. Rs 20 per PoP transaction.
    Variable charges: Custodian charge of 0.0075 – 0.05% p.a. Fund management charge of 0.0009% p.a.

    Premature Withdrawals:
    No partial withdrawal allowed.
    Complete premature withdrawal mandates annuitization of 80% of corpus.

    Maturity benefits:
    Upto 60% is given as lumpsum, which is taxable at applicable rate (this rule hopefully will change). Rest is given as annuity.

  9. apk

    Sachin,

    The difference between Tier-1 and Tier-2 is that Tier-2 allows partial withdrawal. But both Tier-1 and Tier-2 allow complete premature withdrawals.

    Correct me if I am wrong.

  10. apk

    Some more info I wud like to add:
    1. The account can be operated from any place in India. PRAN is unique permanent number assigned to a person and can be operated from any place.

    2. In May every year, one can switch funds, change fund manager. PFRDA is planning to increase the number of switches.

    The information I have shared is based on article that appeared in Outlook Money magazine.

  11. tanjot

    Great Information!! And Possibly it should reach to every employed Indian, at least in both urban as well rural areas…Great job..Thank u

  12. S Singh

    Not a bad idea for long term investement. Gut feeling is at some point of time govt will make final income tax free. May be one can start with risky option and later on switch over to safer ones, depends on age.

  13. om

    hi all,
    can you please tell me that a govt. employee get appointed before 1st jan.2004 and having GPF a/c is eligible to open this account for another pension?

  14. HARISH THADANI

    if we open the account now.if there is change in tax rule i.e EEE in future.Wheter it will apply for previous investment in NPS ?

  15. Sathya

    Answers to Questions:
    1. I m not personally interested in NPS. Its like a government issuing ULIP’s or ULPP’s. But will there be any transparency in what the fund managers are investing in?
    2. Government will need to give it EEE status. It would be an attractive option only if government makes it less complicated.

    What do you guys say?

    • Sathya

      Definataly there has to be transperancy , They have to declare the investments just like regular ULIP’s . Untill it becomes EEE , it would not be as much attractive as other options . But once New tax code comes in , it would be an attractive options then as everything will be taxable at the end .

      Manish

  16. Sanghit Mallick

    NPS is also a good option. But it is in its childhood. So
    as a planner I can say; Get your financial target located,
    then have asset allocated, invest in NPS ( –%) and in
    aggressive pension schemes (—%) of your yearly pension outgo.
    Wait & watch for 3 years, then review. Thanks.

  17. rahul

    what if i resign the job befor retirement?how can i withdraw?
    what if i posses two prans?how one can get de activated?

  18. Hitesh

    Thanks for the info manish…
    I have a doubt though..if we are still awaiting the jury on the NPS, till then how should we plan for retirement…
    Thanks
    Hitesh

  19. angela

    Hi Manish,

    I working in a private company and my age is 30. If I opt for NPS and deposit 1000 per month for next 30 years and choose moderate yield moderate risk option, Can you please calculate for me, what amount I will get at the age of 60?

    Regards,
    Angela

    • Angela

      It is mentioned at http://www.jagoinvestor.com/2009/05/video-post-on-basic-formula.html , I would encourage you to learn thing so that you can calculate things on your own , however here let me do that for you , so the only thing which you need to assume here is rate of interest which you would get , considering its invested in balanced funds, you can expect a return of 10% .

      So tenure(t) = 30 yrs or 360 months
      Rate(r) = 10% or 10/12 per month = .0083333 = 0.10/12
      Amount(a) = 1000 per month

      Final Corpus = a * (1+r) * [(1+r)**t – 1]/r
      = 2279305

      How ever , i would suggest better put it in pure equity which might look more risky , but considering its very long term , you can put it in pure equity , then you can expect 12% atleast , or why not put in pure diversified equity funds . you can then expect 13-14% .. which mean your money will grow to

      3529913 (@12%)
      5557055 (@14%)

      Try to learn on your own all these stuff’s please , its for you

      Manish

  20. Krishna

    Dear Sir,
    At the time of withdrawal, the amount is totally tax free ,then more people attract to this plan. For private employees this is not best, because their hardly earned money will get after retirement how much they deposited . For Govt. employees they will get double. This is not transperant. So that for private employees govt. will give some percentage of govt. contribution then more people attract to the plan.

  21. KP Misra

    Dear Sir,
    If I deposit 1000 pm and now my age is 47. After 60 years what pension I will get pm? I do not want any lumsum amount want some monitery help pm for rest of the life.

    Regards,
    KP Misra

    • KP

      You have 13 yrs in hand , if you invest 1000 per month , you can generate around 3.75 lacs at the end of 13 yrs , assuming 12% return . Pension depends on the returns you get out of your corpus , at the moment , if you have 10 lacs you can expect 7.5k per month for rest of the life . Which means with 3.75 lacs after 13 yrs you should expect around 3-4k per month as monthly income , thats all .

      Looks like you have lost the precious time of accumulation phase in your life , now you need to invest atleast 20-30k per month to generate a decent corpus size for retirement .

      Manish

  22. Aditya Pednekar

    Good day Manish,
    Superb information throughout all your articles. Kudos! It has immensely helped a novice like me to understand personal finance better.

    I have a query & will be grateful if you answer it (Blame it all on insight provided by your literature :-) )

    My father recently (Age 55) has recently opted for Bajaj Allianz Future Secure II– Pension plan (pure pension plan – option A). Payment chosen is 4Lac per year for 3 year term. I was skeptical about it as I would have liked if he had invested in Senior citizen plan’s offered by banks or a FD (given his age). Although I would not like to judge him by his investment rationale, is it justified at his age to opt for a pension scheme linked to the market? He has been a very conservative investor throughout his life investing in EPF’s,PPF , FD’s including some investment in direct equity. His retirement age is around 62 and the amount specified annually is well within his means of earning.

    I would be awaiting your views on this investment.

    Many thanks for the good work you have done so far.

    Warm Regards,
    Aditya S Pednekar

    • Aditya

      I would say its not a wise decision for him to go for this pension plan . The point is he should have gone for Senior citizen scheme of Post office which provides 9% stable guaranteed return for next 5 yrs , which is the best stable return any person in his age group can get .The problem with pension schemes can be the charges , complexity . Even though he as a choice of putting all money in debt portfolio of pension scheme, its not worh the effort at this stage , after all you retire for leaving all those worries and tensions in life , and not back to look each day back in your retirement kitty and its performance :)

      Manish

  23. Raj

    The major set back of this scheme is it does not have online premium paying facility and you have to make minimum four contributions per year. That means every quarter you need to go to bank or drop cheque. Currently ECS facility is provided by only Axis bank and cams.

    Unlike you make Rs 30000 contribution, charges seem quite high.

    -Raj

      • Vikas

        POP can provide you an online payment facility. ICICI Bank does that for its account holders.

        Overall the charges in the scheme are very high. At an annual investment of Rs 24000 the charges work out to 2%. A couple of questions on this site were asking for Rs 12000 annual contribution. The charges go up to 4%. This is criminal.

        Also, one should NOT do a monthly investment in it. Do a quarterly investment. This is because every investment transaction will attract a charge of Rs 30 (Rs 20 at POP and Rs 10 at CRA).

        Eventual tax treatment is also not a good indicator for investment if your horizon is closer to two decades. This is because tax laws are not stable and the DTC would have had many more releases by then.

        • Dominic

          I have seen couple of uses mentioning about ICICI bank providing NPS deposit features. I was searching in the bank’s web site and I dont see one. Could someone point me to the right direction.

          Also iwas told that Rs. 1000 will be added as an incentive if we start and cross 12000 in this financial year. When do I see this 1000 credit.

          Regards
          Dominic

  24. prashanth eyyala

    Manish, Have been doing some sort of research on this subject. In my view taking the tier II probably scores over the MF\ULIPs over the charges. It is approx 0.0009% + allied charge. On a average it will come to approx 0.0008%. Additionally the investments are made in Nifty Stocks pretty much giving balanced returns. I also got to know from one of my well informed friends that the charges are going to come down since the subscriber base will cross 10 L soon. 10 Lakhs includes all the members ( govt as well). Am actually setting up this account today.

    • Prashanth

      Actually there are two things which will matter in long term .

      a) Charges : This is really a big thing, as its low in NPS , it will definately work in your favor .
      b) How you use it : The most important aspect of market linked product is how you can handle the switching and do you do it at right time .

      Other than this there are some issues like Taxability point which is not clear .

      Manish

    • Vikas

      Prasanth,

      Not sure what the charges are for TierII. I lost interest and steam after opening a Tier I account.

      Two problems are there:
      Tier II account can only be opened after you have opened a Tier I account.
      In a Tier I account if you stick to the basics – 4 transactions worth Rs 6000 in all in a year – the charges for making the transactions itself work out to Rs 120 or 2% (Rs 20 at POP and Rs 10 at CRA X 4). I am not yet considering the fixed charges at all.

      On Rs 6000 if you get a 10% return you will have Rs 600 in hand out of which the charges are

      Rs 120 + Rs 350 = Rs 470 (at reduced rates [Rs 20 + Rs 6] X 4 + Rs 270 =Rs 374)

      would be taken away as charges. Service charges are extra. Might as well put it in a long term FD and pay TDS.

      The absolute charges make it a very silly scheme at lower levels of participation. If a larger sum is put in Tier I then a lot of people will find that they are not left with much for Tier II.

      Also, study the charges of Tier II wrt to the amount you are likely to invest. I am sure the difference between T I and T II can’t be too much in terms of charges.

  25. sudhanshu

    presentely i am in Agra and basically i am belong to Gorakhpur. i am interested to open a A/c in Agra will you give the name of POP /bank in which i do same .
    sudhanshu

  26. jo

    HI ALL
    if i plan to deposite 4,50000 as n lumpsum amount as an pension scheme plan , after 3 years how much amount will be given per month.

  27. raj sinha

    hey manish

    can we have updated details on NPS as there is govt contribution of Rs 3000 etc. and your feedback/review/suggestion currently.

  28. A.K. Wadhera

    Respected sir, I retired from pN Bank as an officer. I remained under suspension w.e.f 13/6/95 and after conducting departmental till retirement in Nov.1999.After conclusion of department enquiry, major punishment of compulsory retirement was given. Though I had opted for pension in 1996,which was duly acknowledged by branch & zonal office, but on retirement. PF (my & bank’s conribution) alongwith gratuity was paid. I filed my protests & asked for pensionary benefits, to which bank made no reply. Hence , writ petion was filed in 2001, which is still pending. As per pension regulation rule 22. ressignation, dismissal, removal or termination will forfiet entire past service.which is not my case.As per regulation 21, my suspension period may not be counted for qualifying service and period from my joining in 1971 to date of suspension may only be counted as qualifying service. Now in terms of regulation 33, an employee compulsorily retd. as a penalty,by the authority higher than authority competent to impose such penalty, may be granted pensionnot less than 2/3 and not more than full pension…In case lessor pension is allowed, board of directors are to be consulted before passing such lessor pension. Now my querry is in case I opt for pension under 9th. bipartite settlement, whether a fresh decision will be taken before making me eligible for full pension, or in the absence of any such order having been passed earlier at the time of passing order of compulsory retirement, no such fresh order can now be passed, and I shall be eligible for full pension. Kindly advise me in the matter.
    WITH REGARDS, A K WADHERA
    akwadhera0133@rediffmail.com

  29. Karthik

    Hi,

    Can you tell me about partial withdrawal in this scheme? Is it possible only at 60? It is 35 years away for me!!

    Also I read it will come under EEE from 2011.

    Thanks!!

  30. Prasad

    Manish,
    Do you have anyupdates for Viral questions at the start of the blog?
    What happens to the corpus after the death of the spouse?

    Thanks

  31. prasad

    manish,

    is there any update in this regard ?
    >>>the amount received at the end from NPS would be taxable..
    is it still taxable ?

  32. Balbeer

    Dear Sir,
    I am a Central Govt Employee appointed in 2007 but dont have much knowledge about the NPS. I just want to know whether i will get a regular monthly pension or one time fixed amount after the retirement in NPS.
    I have opted to invest only 10% (minimum limit) from my salary. should I have to increase it?

    Regards
    (Balbeer)

  33. chvvrkch

    Manish,

    i have a query regarding NPS Tier II account……will the investments in Tier II account, qualifies for the 80C deduction…..?
    As they dont have lock in period in Tier II…….

    Regards,
    chvvrkch

    • No

      It does not enjoy tax benefits , its a add on account which is voluntary savings facility for you. Your contributions and savings in this account will not enjoy any tax advantages. But you will be free to withdraw your savings from this account whenever you wish.

      Manish

  34. Manish, I opened an account through South Indian Bank in my hometown in Kerala and since then I have struggled to find avenues to make my contributions to the account..There is no online option which is a major concern…And even banks and FIs seem to be clueless..

    Remittances to the NPS Account is available only in select branches of the PoPs which means that you need to go hunting for branches where contributions are accepted..3 of the PoP SPs that I called up to inquire whether they take contributions to NPS had no clear about it..The nearest PoP-SP for me was SBH, Gokuldham but when i visited the branch, they had no idea of such a product. Even when I showed them my PRAN Card, they were clueless about the entire thing and I had to go back without making the remittance…

    The PFRDA must first educate the PoPs first!!!!

    • Vikas

      Yes, the level of awareness at POPs is a problem. I went to the relevant POPs in Delhi and still had troubles with employees who were not confident of what they were doing. I finally settled for ICICI Bank for they have an online payment option.

      Another thing that you will soon discover are the charges for making deposits. Do not, under any circumstances, exceed the 4 minimum per year condition. The ‘lowest cost scheme’ is not all that low cost.

      • Aditya

        Hello Vikas,

        Could you please ellobrate on your statement about exceeding contributions more than 4 times a year & subsequent charges ? What charges would be applicable then ?

        I am in the process of opening an NPS for myself.

        Regards,
        Aditya

        • VikasK

          Having technical problems – please excuse if reply appears twice.

          Hi Aditya,

          There are no extra charges for making more than 4 installments.

          The charges for the account as per the PFRDA website are as follows – (http://pfrda.org.in/writereaddata/linkimages/Offer%20Document957798914.pdf —- go to page 5 of this pdf):

          POP Charges / installment – Rs 10
          CRA Charges / installment – Rs 20
          Total Charges / installment – Rs 30
          At a minimum of 4 installments per year you have to pay Rs 30 X 4 = Rs 120

          Annual account maintenance charges (CRA) – Rs 350

          Total = Rs 470 + service tax

          Now if you are making large investments then it is fine. The charges are still insignificant and small. However, if you are thinking in terms… say… Rs 24000 p.a. then these charges come to more than 2% (at lesser amounts even more damaging).

          Now consider a scenario of an SIP in this scheme. A monthly SIP will cost you – Rs 30X12 = Rs 360 and Rs 350 (annual charges) = Rs 710 + service tax.

          Do the math according to your investment plans.

          I am yet to include the .0009% fund management charges and custodial charges of .0075% or .05% – whatever these charges mean.

          The less installments you pay the better it is. It is not a scheme for the small investor or an unorganized sector self employed person.

          The worlds cheapest scheme is pretty expensive. To add to it the fund managers are lobbying for increasing the .0009% charges as well as the corpus has not grown as per expectation and they are not even covering their expenses (they claim).

          • Aditya

            Hello Vikas & Manish,

            @ Vikas : Thank you for the detailed explanation. Clears-up couple of nagging doubts I had from long. It would be interesting to note how much the Govt relents to alter the charges in the near future due to persistance of the Fund managers.

            @ Manish : The reason for my opening NPS account is just as a back-up for Pension planning. Currently I am filing my taxes as an NRI (as I work on oil rigs abroad), hence I am not allowed to invest in debt schemes like PPF or Savings certificates. I am contributing regularly to equity Mutual funds (although I must admit not on a monthly basis). Since your blog has pointed out that returns from Insurance/Endowment policies are way below either PPF or Equity mutual funds , the next best choice I saw was NPS , which has give returns in the region of 10% last 2 years or so. I did read Mr. Subra’s blog about NPS and the short coming.In one of his earlier blogs , he has advised against heavily investing in debt schemes (e.g PPF) for investors planning pension & promoted investing in Index funds. Its more like choosing the lesser of two evils, since Pension plans offered by private copanies charge in the excess of 2% AMC not mentioning other hidden charges ! Although I do believe IRDA has now made mandatory returns in the region of 4.5% for these schemes, but am sure they will find loopholes or way around by charging more.
            As far as I can see, its a sad scenario where pension is concerned for un-organized sector like ours where employer cares a hoot about the employees.
            Just read yesterday in one of the leading dailies, that there is a short-fall of a few thousand crores in the Employees Provident Fund scheme due to mis-management & corruption !

            Warm regards,
            Aditya

            • Aditya

              Hey I remember we met in Mumbai meet right ? But you are saying you work out ?

              You can invest in PPF incase you had the account already open , but now you cant open it with NRI status . NPS might be a ok choice for you , just think hard whats best for you .

              Manish

              • Aditya

                Hello Manish,

                You have excellent recollection, its been what 2 months since we met last ? :-)

                As I said , NPS would be just as a back up till the time there is more clarity on Pension funds in India. Unfortunately I didnt open PPF previously. I have recently ordered Mr. Subramaniam’s book wr.t. penson planning. Awaiting its delivery. Maybe I would get more clarity about pension planning in India.

                Hope everything is well your end. How did the Banglore session of Jago Investor go ?

                Warm regards,
                Aditya

  35. RIJU GANGULY

    I have the following queries:
    1) Is NPS listed among the approved Pension schemes (under the Direct Tax Code) wherein investment upto Rupees one lakh every year would be exempt from taxation?
    2) If the answer is “yes”, then would you advise me to stop contributing into ULIP-based Life Insurance policies (I am not sure whether they would be treated as “pure” policies that allow exemption upto Rupees Fifty Thousand every year) from April 2012, and rather invest more in NPS (as of now I am investing the nominal Rupees 6000/- only)?

  36. Kirteekumar Manohar Gore

    I Want open NPS pension scheme. Where I open this account. In Bank? or any other. If bank, please send me the bank lists.

  37. Saurav Sinha

    Hi All… A small confusion… I went through PFRDA site which clearly says that NPS is not for anyone who has an EPF account…. But here Im reading that anyone can open NPS account. Whos correct? PFRDA site is not having updated details?

    • Saurav

      Can you give the link , because I am sure its not the case , it might mean that some one with EPF does not need NPS as he already has a medium to invest money for his retirement .

      Manish

      • Saurav Sinha

        Thanks 4 responding promptly Manish… N sorry 4 not doing the same… The link PFRDA FAQ given by U clearly mentions those who are not eligible for NPS! U can visit the site http://www.pfrda.org.in and check FAQ link on top right corner, wherein U’ll see “Who are not covered under NPS” and the very 1st point says it…

        • Saurav

          ahh , you have a bit confusion here .. You can also see a link called “who is covered under NPS : http://www.pfrda.org.in/faqdetails.asp?fid=227” which means that who all already have NPS by default . Thats the reason there is another link which is “Who is not covered” , which means that anyone who is alreayd getting EPF is not by default under NPS , people who are in govt jobs after 2004 already are under NPS schemes . so in the same way if there is anyone who is under EPFO , are not by-default covered by NPS . However it does not restrict them to get NPS from outside if they wish to :) .

          Manish

  38. Saurav Sinha

    Is it? Great then… Now Im serious about it… Few more clarifications are needed Manish assuming I opt for 50% Equity n rest in debts … 1) Can we know in which sector our Fund Manager is investing as in large cap, mid cap industries etc.. 2) Can we change our Fund Manager, if yes then whats d charges n max limit of changing them… 3) Is the entire contribution upto 1lac is deducted from Taxable amount… 4) Will Govt contribute any amount towards private sector NPS account holders… 5) What are the plus n minus points of Tier-II account apart from withdrawal facility?

  39. Gaurav Singh yadav

    I want to know that amount received in this NPS scheme is still taxable or not??
    And how it is better from PPF??

    • Gaurav

      As per the current tax rules an DTC , it will be tax free . You cant compare it with PPF as NPS also has equity component , so you are actually comparing debt and equity which is a totally different thing

      Manish

  40. Raj Kapoor

    I am currently employed in a psu bank. Will i get NPS money (my contribution+govt. contribution) if i resign from my current job
    and move to a private organisation?

  41. Suresh

    Hi,

    Iam 34 years now and Iam already having pension plan with ICICI prudential and Iam maintaining for the past 6 years. Is it good option to open NPS or better continue with ICICI pension plan. Iam trying to compare the safety of both the funds in long term.

    Also is it possible to transfer all the money from ICICI pension to NPS? If I do that , will it be profitable or will be at a loss?

    Regards
    Suresh

    • Suresh

      NPS comes from govt , but even there your money is invested in equities which is not guaranteed . so i would suggest continue with your pension plan at ICICI at the moment .

      You cant transfer your pension plan to NPS , however you can always sell it off and reinvest in NPS

      Manish

  42. sandeep

    waht about a person who is central govt. employee join after 1.1.2004 and have PRAN card . in between it he was selected a another good job of state/centre of lower pay -scale from the existinf one. for which dept he presnently serving does not provide No objection certificate for that post what he will do if he want to join new job whether he Regine and join new one job then what about his pran no. what to do.

  43. Natraj

    Hi Manish
    I have a query on employer contribution to NPS. How can a employer contribute to employees NPS account ( I am working for a small company with less than 7 employees, so do not have EPF contributions from my employer. I want to ask my employer to contribute to my NPS, but I will have to tell him how to do it exactly. Can you please help – this will allow me to save some tax)

  44. VJ

    Is the contribution to NPS for FY2010-11 or FY2011-12, considered under sec. 80C of Income Tax ? Is this formally notified by Income Tax in current tax law ?

  45. Hargovind

    Hi,

    It is really heartening to see the main opposition party the BJP to help government in the PFRDA Bill when it was put up in parliament recently.

    I think the Svalamban scheme announced by the government is also a unique and best way to take NPS to the masses.

    As per the Government guidelines for Swavalamban, any citizen who is not part of any statutory pension scheme of the Government and contributes between Rs. 1000 and Rs. 12000/- per annum, could join the Swavalamban Scheme.

    One can find more details on http://www.pensionindia.com where there is a analysis on this scheme.

    Best Regards

    Hargovind

  46. SG

    Not sure if anybody is aware of this.

    You can only make contributions from the POP you open your account with.

    I made a mistake of opening my account with CAMS. They have only 1 office in Hyderabad and quite far from my home. I have tried 3 other POPs to make my contributions, but they say the system does not allow.

    To top it all there is no online payment option.

    It gets really difficult to maintain such an account if i can make payment only at 1 center in the entire city.

  47. SSM

    Dear Sir
    My son got a private job recently. He doesnt have a PF scheme in his organisation though it is having more than 20 employees. Hence I wish to put him in some pension plan. Somebody suggested ‘Life gain Plus’ scheme in Max New york life. Will this be better or NPS is better? kindly reply

  48. SSM

    Dear Shri Manish
    Many Many thanks for the reply. Thank you very much for the advice. Kindly tell me which equity fund is better to invest on monthly basis. Similarly pl advise some mediclaim policy. Is State Bank PPF is Ok for him now?

    Once again extremely thankful for your kind reply
    Regards

    • SSM

      He can invest in some balanced funds like HDFC Prudence or Reliance regular balanced funds (these are pure balanced funds) .

      If he wants to take more risk , then he can take DSPBR top 100 or HDFC Prudence .

      Mediclaim policy is not easy to recommend like this on comment ,you need to see your self which one looks good to your situation

      PPF is a central thing, its not “SBI PFF” . SBI can only be the bank to open PPF account . but PPF is maintaned in the same way if you open it from SBI , Post office or Maharasta bank , whatever !

      Manish

  49. Dr. AKP

    Hi Manish,
    Is it possible to convert Tier II to Tier I in NPS if someone open a Tier II account and then secure a cental Govt. job later on. I mean the earlier contributions in Tier II can be forwarded to mandatory Tier I account for Govt. employee?
    Thanks,
    AKP

  50. AKP

    Manish,
    Hi guys, thanks for your comments. I am reconsidering my investment just before going to post my package from here today. Can you give me some advice for long term corpus generation.
    I’m at 30, Currently having about 35,000 INR/month money to invest and willing to take risk and also want to use power of compounding. Although looking for permanent jobs in India.
    Can you suggest some avenue!!!

  51. Saurav Sinha

    Hi Manish & fellow JI followers…

    Plz help me out with few queries:

    1) How to track the performance of each of the PFM like ICICI, SBI, Kotak, UTI, LIC etc to compare the ROI?

    2) Fund managers’ names & their performance in managing similiar kind of funds?

  52. vishal

    amount of Tier-II cannot be transferred to tier-I, as in tier-I, govt salaried person can invest only 10 % of (Basic + GP ) and not lower or higher than that.

  53. Binu sasi

    Sir,

    I have opened a NPS through Bajaj capital. I got the PRAN card. I got the information that ICICI bank has an online payment for NPS. I opened an ICICI bank account. I tried to make payment and it bounced back. In the site they mention that online payment option is available only for those NPS accounts opened through ICICI. Now is there any other online payment options. Can i give an ECS mandate to any other POP , other than Bajaj capital. It was a stupid decision to open the account through Bajaj capital. Kindly advice.

  54. ajay

    check this …
    from :– pfrda@camsonline.com Sat, Oct 1, 2011 at 11:43 AM
    To: Ajay Kumar Tiwari

    Dear Subscriber,

    Greetings from CAMS!

    With reference to your mail, please find attached the offer document for Tier-II.

    You can transfer the amount from Tier-II to Tier-I, but as of now it is not into effect. As ans when the same comes into effect we shall intimate you.

    If you have an existing NPS account under central govt. you can open the Tier-II account with us. The initial contribution amount should be for Rs.1000/-.

    For further assistance please do not hesitate to get in touch with us.

    Assuring you of our best services at all times.

    Regards,

    Manjula K

    Unit: PFRDA(National Pension System)
    Computer Age Management Services Pvt. Ltd.
    Rayala Towers – II, Vth Floor,
    158, Anna Salai,
    Chennai – 600 002

    Contact Number : 044 – 30212 808 / 636 / 900

  55. Rahul Raj

    Hi Mansh,

    1st of all, thnx for these valuable information.

    I’m a Central Govt Employee and joined in March 2010
    How much may I receive as monthly pension after retirement under NPS? And how can I ensure that the pension will be sufficient enough to led a good retired life?

  56. Saurav Sinha

    Hi Manish….
    Q1) How can we track the performance of fund managers of NPS? Is there any particular site or are any of the involved Fund Houses declare the same on there website?

    Q2) Out of ECG, I am going to put 50% in E, but not very clear about the % allocation in C & G schemes, can U help, given the tenure is around 30yrs for my case?
    Thanks!!

  57. Ravi Arya

    Hi!
    I was working in a Central Govt. Organization earlier for a period of 1 year, where I had NPS Tier I account, But now I have left that organization….
    I saw a link in the onlinesbi with which you can contribute to ur NPS account, but when I send money to my NPS account, it came back with the message “NPS REJ TXN – Sub does not belong to Unorganiz “. Can anyone tell me what can be done for using the ONLINESBI for crediting to NPS Or is there any other option to credit online to NPS Account…

  58. ravi k

    Hi,
    I am investing in NPS from last 2 yrs under IDFC fund Mgmt, the return are not so good, can somebody guide, should I switch my investment to any other fund mgmt, if so which fund house.

    Regards
    Ravi

  59. Kiran

    Hey Bro,
    My DOB is 31-12-1986, and I am planing for a pension scheme for future. As per that without knowing the full information I have deposited Rs. 1000/- to NPS (tier-II) under SBI. So, I just want to know is it the right decision on my part? or what should I do? And moreover I want to know that how to check my balance in that account. Please help me out with some perfect solution for which I shall be grateful to you.
    Thanks

  60. D.kameswararao

    Hi sir I am working in central govt as pay scale 5460-20500(2000 grade pay). i have nps scheme from may,2010 from my salary ie 10% of my salary. Presently i am 33 yrs old. i am asking one doubt that how much lump sum amount can i get after my retirement and how much amount can i get pension per month. please tell me sir, thank u

  61. Rajwinder Singh

    i am investing in NPS regularly since 2009. i want to knw how much amount i claim for tax reduction if i deposited in NPS . eg if i deposited rs 2000/- on quarterly basis i.e 8000/- in year. So how much I claim for tax benefits RS 8000 or rs 7908 ( as AMC and other charges) as shown in the Satement of holding.

    Kindly Advise

  62. Vijay Kumar Goswami

    Hi Manish,
    My problem is quite different,
    I would like to open NPS a/c, so I visit my both of bank, SBI or Syndicate, but they official not aware of scheme. Even requested, plz let us know also. Despite I am living in Delhi.

    Please help me, where I can open NPS account

    • Vijay

      These are the authorised POP

      1. Allahabad Bank
      2. Axis Bank Ltd
      3. Bajaj Allianz General Insurance Co Ltd
      4. Central Bank of India
      5. Citibank N.A
      6. Computer Age Management Services Private Limited
      7. ICICI Bank Ltd
      8. IDBI Bank Ltd
      9. IL&FS Securities Services Ltd
      10. Kotak Mahindra Bank Limited
      11. LIC of India
      12. Oriental Bank of Commerce
      13. Reliance Capital Ltd
      14. State Bank of Bikaner & Jaipur
      15. State Bank of Hyderabad
      16. State Bank of India
      17. State Bank of Indore
      18. State Bank of Mysore
      19. State Bank of Patiala
      20. State Bank of Travancore
      21. The South Indian Bank Ltd
      22. Union Bank of India
      23. UTI Asset Management Company Ltd

      May be your branch is not aware of it .

  63. VISHAL SHUKLA

    I see this comment about NPS in fundsindia.com website… kindly focus on it… “investments in the New Pension Scheme upto 10% of a persons basic pay is exempt from income-tax under section 80CCD(2).
    This is over and above the Rs. 1,00,000 under 80C and Rs.20,000 under section 80CCF.”…

  64. Samir

    Great thread of discussions – every reader’s thought process gets synced.

    Based on Vishal’s comments given about 80ccd(2) – which came into force from 2011 budget, for an investor with basic salary income 2 lac p.a. in previous year, the exemption limit for would be Rs.20000 and for someone with salary 4lac pa it will be Rs40000?

    For a 50 year old, targeting a pension of 7000 p.m from age 60 how much investment should be done monthly/quarterly.

    Is this facility available to people who are business persons?

    Tks for the interesting trains

      • Samir

        Thanks for-1 the super-prompt response. Will put the queries one at a time:

        For a 50 year old, targeting a pension of 7000 p.m from age 60 how much investment should be done monthly/quarterly

        Shall appreciate suggestions.

        rgds

  65. Shyam

    Hey Manish,

    I joined in a PSU bank after 01.04.2010, hence NPS is mandatory for us. However i am not in favour of joining NPS Scheme, because of the following reasons.
    1) There is no partial withdrawal to meet contingencies.
    2) Since my age is only 25 years and i don’t want to block 10% of my basic + DA for each month to get it after my retirement i.e. after 35 years from now.
    3) There is no liquidity.
    4) More over i will definitely leave the bank after 1 year since i am in searching for good opportunities. What will happen to my contribution, which i will pay during my tenure in the bank, i think this amount i will receive only after i am attaining 60 years.

    Please clarify whether my reasons are valid.

    Regards,
    shyam

  66. pawan

    sir,
    i am regular employ of the haryana state co-operayive and supply and marketing federation ltd. But i have resign from this office on 18/04/2011. Also i have get a pran number from this office. I joins haryana education department on dated 19/04/2011. I want to know that how can i apply for new pran number. Is it possible to apply for new pran number. Or i have to cancel the first one. Or how to convert the old number to our haryana education department. Please suggest me

    • Pawan

      Thanks for asking the question. We would suggest asking it on our forum, so that more people can have a look at it and give their comments too . Please ask your question on the forum where I personally and others reply very fast . It takes 1 min to create a login and start asking question .. Incase you want me to create a login/pass – let me know

      http://www.jagoinvestor.com/forum/

  67. santosh kumar ujjawal

    ssir, i was in state govt.three years but i left the my dept. i have deposit money in ncpf account . it is possible the money is refundable

      • praveen

        sir
        Its NPS a/c

        where we find NAV of NPS , my age 30 years how we know how much Pension will come after 60 years. what is differenc between NPS and other pvt Companies offering Pensions Funds. Next thing is suppose i want my pension start from 50 years is it possible ?

  68. Samir

    Any guidelines for EPF withdrawal ?

    My PF lying as it is though company where I worked closed down in 2001 — amount not withdrawn earlier, as company had not paid the Employer’s contribution for the PF — but now I understand the Company has cleared the same about 5 years ago.

    Do not have my identity no. or slip giving details of amounts deposited in my account. Just by giving the Company name can I get all the details — following up only by email – as I have not time to go and visit.

    Shall appreciate your guidance.

    tks

  69. archana jha

    SIR, Does tier -|| accont under under nps not come under (100,000) exemption under income tax law, like vpf.so for tax saving investment, we should not wait for roll out of tier-|| account, but to choose another tax saving options.

  70. s r rath

    Dear Sir,
    i am currently working in a Central PSU where NPS scheme is in place. Here 10% of salary is being contributed (9% from employer side and 1% from employee side) towards the fund by each employee. I just want to know if i resign from service and Join any private job, can i continue the same pension policy by contributing the amount regularly or is there any other option as per rules of nps.

  71. pankaj

    sir muje jyada hard & fast english to nhi aati isliye me hindi me janna chahta hu plz ye btye ki me state gov mp ka employee hu meri posting april 2005 se hi ansdan kat rha he nav ke rate kam ya jyada hote rehte he isse mere payment par kya loss to nhi hoga or ydi me apne paise service time me nikalna chahu to kya kuch paise nikal skta hu

  72. S K Banerjee

    Please furnish the names of the states and union territories who have not yet implemented the New Pension Scheme(contributory) effective from April 2004.

  73. n.palei

    sir,

    i resigned from central govt. job (BRO) ,i want to withdraw my money from CRA.new pension scheme.give me the procedures

  74. Roy

    Upon resignation from government service, I had applied to CRA-NSDL through the PAO to withdraw my savings from Tier 1 NPS account. However I have not heard anything from them yet.
    Can you tell me what is the procedure to withdraw the money as there is no standard form and a recent MOF circular in the NPS website mentions something critical which I could not understand.

  75. Vishal Jain

    Dear Manishji,

    I already have monthly investment in SIP and I also have a PPF account. According to me its not wise to invest in NPS. WHat is your opinion.

    Thanks & Regards.

  76. DD

    Hi Manish ,
    Can you elaborate the effect of tax deductions for NPC Contributions under 80CCD?

    What are the conditions that must be followed, (like contribution from employer)?

    Can a private emp, make use of it? How?

    Will it be allowed over and above 1 Lakh limit under 80C?

  77. Jitendra Kumar

    Dear Manish,
    I am 48 years now. To get 20000/month after 60 yrs, how much money should I invest in NPS ? I have PPF account also, could you please suggest me that should I go for NPS or invest in PPF ? I am little bit confused. Pl. Help me.

    Regards
    Jitendra

  78. Doris

    Dear Sir,
    I am a state government employee since 2011, and as such I have a Tier I account. Since the amount for NPS are cut directly from my pay, and funds are allocated automatically, is there anything I can do to ensure that the amount cut from my pay is being invested properly? Or should I have full faith in the system and simply do nothing? Your advice would be invaluable as I am quite new to NPS. Thank you, Doris.

  79. Sandip

    Hi
    I’m an employee of a private organisation and earning CTC 4L. I want to start of with pension plan. can’t go for LIC or SBI one as they require the investor age to be 30+. Kindly advice if NPS would be ideal decision for me. I’m totally confused, and what’s the minimum annual investment? which fund manager would be the best one.

    thanks

  80. amandeep chawla

    sir,
    i m a state govt. employee. and the PRAN form is filled by me. my question is that the lines of schemes and fund houses > i can’t understand whether i read the fund managaer houses in the PFRDA website there are 8 to 9 schemes offered by the fund managers. you suggesed me what schems are better for me. my choices is only that i can choose only 3 schemes.

  81. Chetan Ambi

    Manish, Nice article on NPS.. Comments from readers will add more weight to the article.. Sometimes as much informative as main article itself.. Wonderful blog..

  82. Bharat

    Sir,

    1. NPS will pay pension from remaining 40% left with them.
    2. Will NPS pay pension to my spouse after my death.
    3. What happen to 40% fund afer my spouse death.

  83. Prithvi

    After reading blogs, I am contributing minimum amount as 500/- per month, because at the end we need to buy annuity policy which will give very less interest rates.

  84. Roshni

    Dear Manish,

    Thank you for the articles and for taking the effort to answer each question. Learning a lot from both.

    Regards
    Roshni

  85. Ankit Goyal

    Dear Sir

    I am a Businessman & i want to know that Can I Open a NPS Account on the basis of Self Employed?
    If yes, the contribution to the NPS is Taxfree other than the Limit of RS 1 Lac allowed under I.Tax Act 80 (C)

    Waiting for your reply.
    regards
    ANKIT GOYAL

  86. Preeti Mehta

    Yes we know about NPS but tell us who is doing this pro.
    because all govt. banks and even post office behave like
    they don’t know about NPS.

    We would like to invest kindly suggest proper person
    for our investment plan. I m from Mumbai.

    Preeti.

  87. Devesh

    Hi manish.I am devesh from Raipur and working in BSNL(Govt PSU).I have EPF Account and my employer contribute on my account.Can i open NPS Account.Because in EPF we will get very less pension(Max up to Rs3250).

  88. sandeep

    Hi Manish, I joined state bank of Indi. In October and in my first salary,an amount was deducted as contributory pension fund, apart from PF deduction.
    I would like to know if my bank will do the work of getting a PRAN for me, or will I have to do it myself?
    Also, whats the difference between tier 1 and tier 2? And if I join pvt sector after a few yrs, what happens to this deducted amount?

  89. Krish

    Hi Manish,

    Nice article, as always! :)

    I have opened Nps account and my employer was deducting the money to deposit to my nps account. But I now resigned and pursuing higher studies and planning to maintain the account by depositing min amount till I complete my education.

    My doubt is, how will I deposit the amount? Can I transfer online through net banking options? I have my PRAN card with me and my savings account is with ICICI.

    Thanks in advance.

    BR,
    Krish.

  90. VIKAS PHARNE

    Dear Sir,
    I have invested in NPS through local agent, I have received my PRAN Card also, now
    i want to pay my installment, i tried to call that agent but he is not picking up the call.

    Please advise how can i pay the installment, any other option is there to pay installment.

    Regards,
    Vikas

  91. shreyavadara

    i am working in central govt.i got pran no also.i am selected in another govt org.without noc i have selected in interview .After resigning i will join in new job.my problem is that in new job they will provide me a new pran but database in it shows will it already exists my details.please help me .i want to get a fresh job will it provide me new pran

  92. shreyavadara

    if i resign my current job will pran cancels automatically so a new pran number will be activated by another org ?plz help me friends ?

  93. Rajesh Parasher

    Dear Mr. Manish,

    My wife who has opted for PRAN (SBI Pension fund scheme E, C, G) in 2011, was expired last year in (Aug 2013), due to illness. Even after writing to NSDL in Nov 2013. I received no reply from NSDL. I visited Post office Sarojini nagar, and they have not much information about the scheme and Benefits of this scheme. Since My wife expired, (who wanted to be benefited by the scheme) were not much aware of scheme. Now i would like to know.

    1. What is the procedure to claim ?
    2. How much time will it take to get the claim?
    3. Will I be entitled for Pension or can continue the scheme by transferring it in my
    name.
    4. There is no clear cut instruction on website or to POP office.
    5. Your forum seems to through some lite on my issue as well as will educate lot of people on this forum, who are keep to opt for this New Pension Scheme by Govt. of India.
    with regards

    Rajesh Parasher
    Mehrauli, New Delhi

  94. Gaurav

    I want to calculate the maturity amount of NPS.
    if i invest 6000 pm till 30 years.
    and increase the investment by 10% each year
    like in first year invest 6000 pm
    in second year: invest 6600 pm and so on… till 35 years

  95. pritam das sharma

    I am a govt bank po , having tier-1 NPS.. Now I planning to resign from bank..plz help me by informing that how can I get back my nps investment till date.

  96. Deep

    Hi,
    I want to know as per current law is NPS is under 80c or outside 80c?
    The reason because I am asking this question is there were some presentation from Kotak Mahindra in our office & they say if we do it from corporate or direct deduction from Salary it would be outside 80c

  97. T D Mohan Kumar

    NPS scheme is good but how many of Indians are aware of this scheme. Moreover, Government may understand that the scheme is for the poor and medium class in India. The cost deduction from the investor like (i) Registration & transaction charges, (ii) Fund Management Charges, (iii) Annual Maintenance Charges, (iv) Transaction charges to CRA etc. should have been avoided. In most cases this is a long term deposit and the Government is taking advantage of the deposit amount. It will be encouraged that if a nominal percentage of amount be deducted from the Income generated out of the deposit amount.
    Further, the NPS scheme to be popularized by public awareness.

      • T D Mohan Kumar

        In my opinion best way to make it popular is :- (i) advertise the scheme through medias like TV, radio, net etc. (ii) Experts discussion in the DD. (iii) Highlight the major benefits in advertisements. (iv) Fix notices in every Banks and Post Offices where the NPS accounts can be opened. (v) Affix notice in every fair price shops (Where supplying government ration items). (vi) Arrange enrollment campaigns in Exhibitions in cities.

        I expect other viewers give more ideas.

  98. Amar Kumar

    I want to take the franchisee for PRAN Card and for this I was been seeing so many agencies on Quikr.com offering franchisee for this so,in this regard I want to know whether these agencies are good or absolutely fake,please help me in this regard at your earliest

  99. prashant gautam

    hi manish
    i am a 2012 december batch National Insurance company ltd employee, the company deducts 10% of basic + DA from salary but we have not yet received any PRAN number.
    after enquiry it was informed that a NPS related case is ongoing in madras high court and kerala high court and til their verdict is out no NPS fund managers will be selected and no PRAN number shall be issued.
    nealy 10000 new employees are in same problem.
    we do not know the forum to post our grievances and we do not know who will solve these issues.
    kindly provide some solution.

  100. Mehul Jani

    I have one question for the scheme,

    As per my knowledge under this scheme if person dies before the retirement age i.e. before the age of 60 years than total corpus fund as on date (with interest etc) will be given to his nominee , right ??

    and if survive up to the 60 years of than his monthly pension will start but afte that of he dies at the age of 62 years than what ,

    he enjoyed pension for 24 months only whether his nominee will get balance corpus fund ?

    also up to what age he will get pension ?

    please explain,

    Mehul Jani

  101. Santoshkumar

    Sir,IF ,I am 30 yrs old self employed person and have 4 lakhs yearly then which account is preferred for me MAIN OR LITE.??
    MEANS which will yield better at the end.
    What are tth exact differences between investment made by funds manager?
    What are the facilities regarding partial withdrawal?

  102. simeen khan

    Sir,

    I was an ex-employee of SBI. Joined bank in 2010 and in 2013 i resigned from my job. I have two querries. One is bank paid me only my contribution of pf and not the bank’s contribution, saying that service less than 5 yrs don’t get contributory pf amount. Is that correct? My second question is about NPS, Can i withdraw my NPS as now i am no more in service? If yes how can i and for that also i will get only my contribution?

  103. prakash

    sir is there any facility in nps that we can take advance or loan from our contribution like kgid, gpf and lic..

    reply from you is appreciable,

  104. SONIA

    I was working in a bank , now i have resigned and now i want to convert my NPS A/C from Corporate to Indivudual, please guide me what are the formalities bcoz i have not done any transanction in my a/c in this financial year, if i will not do any entry with in this month my a/c will be deactivated.

  105. Imtiyaz

    Sir,
    I got my PRAN Card through “alankit assignments limited” now i am confused where to pay the premium amount at alankit assignments limited or any other bank please suggest. also how can i change my aggregator plz suggest

  106. ratnesh

    Hi Manish,
    I am working with a private company. Can I open a NPS account with any bank and give it to my employer? Is there an additional 50k exemption for NPS on and above 150k for 80C? How it is different form pension fund offered by various fund houses like Reliance Pension fund?
    Thanks,

  107. I am Poonam private employee i wants join this scheme could you please explain the what is the online processor of this scheme nd benfits also.please revert

  108. Dibyendu Mazumder

    Sir,

    I am working in Pvt sector. I have EPF scheme from last 3 yrs. Am I join NPS scheme.

    Regards,

    Dibyendu Mazumder

  109. Manjula.V

    Hi,i am a group A officer serving in state govt.i already have NPS account which has many years contribution to it. In 2014 i got transferred to Nigam (Karnataka neeravari nigam ltd) which is not deducting my monthly NPS contribution and some discussions is going in govt level.itseems that SBM/SBI is having NPS contributions.Wanted to know how to invest my money to bank

    • Hi Manjula.V

      I suggest that you now take the RTI route. You can file the RTI and ask your queries to them. THey are bound to reply you on your queries.

      Its a bit long cut, but works well

      Manish

  110. Jyoti Bajaj

    Sir,
    I am 27 years old. My salary is 12000 per month. can you tell me the best way to invest for future.Please tell me . I am confused.
    Thanku…….

  111. RAO

    I AM PAYING SUBSCRITION 4000 EVER MONTH THROUGH BANK BUT LAST MNTH THEY HAVE NOT PAID NOW WHAT I HAVE TO DO CAN I PAY 8000 NEXT MONTH IS IT POSSIBLE REGARDS

  112. Arnabi

    Sir, I already have a EPF with my previous employer and recently I have resigned from that company and now I’m about to join a public sector unit, where NPS is mandatory. I haven’t withdrawn any amount from my P.F. and it is still active. Will there be any problem with the generation of PRAN card with my new employer? And does a public sector company have both EPF scheme and NPS scheme? Please reply

  113. vivek

    sir my age is 32 if i invest 5000 per month in secure manner in nps at the age of 60 what will be the amount of pension i will get im working for a govt org

  114. NIRMAL FRANCIS

    I have resigned from a psu bank .
    how can u withdraw the money from nps account incase of resignation?
    The a/c is frozen .

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