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Banking & Financial Services

Pension Services (NPS)

National Pension System — Secure Your Retirement

Official Website 1800-110-069 (toll-free)
Fees: Account opening: ₹400. Annual maintenance: ₹190. Fund management: 0.01% per annum.
Processing: PRAN issued within 3–7 working days

What is Pension Services (NPS)?

The National Pension System (NPS) is a government-backed voluntary pension scheme regulated by PFRDA. Contributions are invested in equity, corporate bonds, and government securities. At retirement (60 years), withdraw 60% as lump sum (tax-free) and use 40% to buy annuity.

Who Can Apply

  • All Indian citizens aged 18–70 years
  • NRIs (with certain conditions)
  • Government employees (Tier-I mandatory)
  • Private sector employees and self-employed

Documents Required

  • Aadhaar card
  • PAN card
  • Bank account details
  • Cancelled cheque
  • Passport-size photograph

Step-by-Step Guide

1

Choose Account Type

Tier-I (pension account, mandatory for govt employees) or Tier-II (voluntary savings, flexible withdrawal).

2

Register Online

Visit enps.nsdl.com or pfrda.org.in. Register using Aadhaar/PAN.

3

Complete KYC

Submit Aadhaar-based e-KYC or physical KYC at Point of Presence (PoP) bank.

4

Make First Contribution

Minimum ₹500/contribution for Tier-I. Choose fund manager and asset allocation.

5

Get PRAN

Permanent Retirement Account Number (PRAN) issued — use for all future transactions.

Important Tips

  • Start NPS early — power of compounding over 30+ years
  • Claim extra ₹50,000 deduction under 80CCD(1B) beyond 80C limit
  • Choose aggressive allocation (75% equity) when young
  • Check PRAN statement annually for fund performance

Frequently Asked Questions

QWhat are the tax benefits of NPS?

Deduction up to ₹1.5L under 80C + additional ₹50,000 under 80CCD(1B). Total ₹2 lakh deduction possible.

QCan I withdraw from NPS before 60?

Partial withdrawal (up to 25% of own contribution) allowed after 3 years for specific reasons: medical, education, housing.

QWhat is annuity in NPS?

At 60, use at least 40% of corpus to buy annuity from empanelled insurance companies for regular monthly pension.

Fees

Account opening: ₹400. Annual maintenance: ₹190. Fund management: 0.01% per annum.

Helpline

1800-110-069 (toll-free)

Processing: PRAN issued within 3–7 working days