The Government of India has taken many initiatives for the welfare of Indian Citizen. One of those is National Pension System Trust. About 80 percent of Indian has not any type of policy cover. The Pension Regulatory and Development Authority (PFRDA) has taken many steps to increase the pension coverage in India. All the Indian Citizen between 18 to 65 years can join the National Pension System and able to continue up to the age of 70 years. The scheme is regulated by the Pension Fund Regulatory and Development Authority (PFRDA).
The scheme provides old age income security. Lots of the people of the age of 50 years and above is now inactive life due to the better healthcare facility and increased fitness. Many of them are active in private sector and many of in self-employment and they are able to generate productivity. The initiative is taken for covering more and more people under any type of insurance.
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- All the resident of India or non-resident is eligible for joining the scheme.
- The age of subscriber should be between 18 to 65 years.
- Un-discharged bankrupt and mentally able cannot join the scheme.
Benefit of the scheme
- This is the transparent system where the subscriber will able to know day to day value of the investment.
- Under the scheme, subscribers get tax benefits of Rs 50,000 under 80CCD (1B) and over the Rs, 1.5 lakh gets tax benefits under 1.5 lakh.
- Under the scheme, 40 percent of maturity is tax-free. Out of reaming 60 percent, 40 percent will be tax-free if subscriber used to purchase of the amount.
How to Open an Account
- Register on the National Pension System Trust portal https://enps.nsdl.com/eNPS/OnlineSubscriberRegistration.html?appType=main
- Choose subscriber type, status, you may be registered here with Aadhar Card or PAN card.
- Now a Verification OTP will be sent to your registered mobile number.
- After the successful registration, you may get a PRAN number.
- Now you may join any of the pension fund managers from eight registered
- ICICI Prudential Pension Fund Management Co. Ltd.
- HDFC Pension Management Co. Ltd.
- Kotak Mahindra Pension Fund Ltd.
- LIC Pension Fund Ltd.
- Reliance Capital Pension Fund Ltd.
- SBI Pension Funds Pvt. Ltd
- UTI Retirement Solutions Ltd
- Birla Sunlife Insurance Co. Ltd
The Subscriber who join the NPS after the age of 60 who have the same facility which has been given to the subscriber who joins before the age of 60. The 60 years above subscriber can exit the NPS after 3 years competition of NPS. But a condition for the subscriber of 60 years who wants to exit after 60 years, 40 percent of the corpus has to use for purchasing and remaining can withdraw in lump-sum.