Commonly, a person works till a certain age beyond which he is not able to continue earning. He thus enters the Retirement phase of life wherein he needs a steady periodic inflow to sustain himself and also to maintain his expected standard of living without having the need for depending on others ( Govt, Children, Friends etc ).

Keeping this background in mind, Govt of India formed the Pension Fund Regulatory & Development Authority (PFRDA) for developing & regulating Pension System in India. PFRDA launched National Pension System ( NPS)

NPS is a Defined Contribution based Pension Scheme launched by Govt. of India.

CONTRIBUTION + INVESTMENT GROWTH - CHARGES  = ACCUMULATED PENSION WEALTH

Who can Invest ?

A citizen of India including NRI between the age group of 18 years & 60 years can join

How it Works

• To enrol, client submits Registration form to Service Provider (PoP).
  (Indusind bank is a registered PoP )
  - Attach self-attested KYC docs
  - Append initial contribution amount
• PoP processes the application by sending to CRA.  CRA ( in this case NSDL ) is central agency appointed by PFRDA for handling records and other services related to NPS
• Upon Registration, NPS account is opened and a Welcome Kit is sent to subscriber, carrying a unique Permanent Retirement Account Number (PRAN)
• CRA also sends periodic SMS/Email alerts on Credit/Debit of units; Fund value; status of service-requests received; status of grievance received etc CRA also sends periodic Consolidated Transaction Statement
• Subscriber starts contributing to his NPS account till the time he is working.
• On retirement the total corpus is made available to subscriber
• Subscriber selects an Annuity Plan as per his requirement and invests the amount to avail pension for post-retirement years

List of KYC Documents
(for detailed list refer to Subscriber Application Form)

Proof of Identity (Any One) : Passport, Ration card, Bank Statement, Voter card, Drivers Licence, PAN, Aadhaar

Proof of Address (Any One) : Passport, Ration card, Bank Statement, Voter card, Drivers Licence, Aadhaar, Utility Bill

Benefits

• Low Cost Investing and Compounding
• Transparency, Portability & Flexibility
• Tax-Efficient
  An individual can claim deduction u/s 80 CCD(1B) for contribution to NPS ( Upto a maximum of Rs. 50,000 ). This is over & above Rs. 1.5 lac deduction already available u/s 80 C where NPS also qualifies

Types of Accounts
2 types of accounts are available

Tier 1 Account ( mandatory)

• Withdrawal is not allowed ( before age 60)
• Tax benefits pertain to this account

Tier 2 Account ( voluntary)

• Subscriber is free to withdraw anytime
• Tax benefits are not there in Tier-2 account

Minimum Contribution Requirements

Investment Approaches
Active Choice
Subscriber can actively decide as to how your money is to be invested across Equity (E), Corporate Bonds ( C ) & Govt . Securities (G).  Equity capped at 50%

Auto Choice
Investment is made from a life-cycle approach. Allocation is progressively decreased in Equity & increased in Bonds & Govt Securities

Role of Indusind Bank

IndusInd Bank has been registered with PFRDA as PoP and its branches have also been registered as PoP-SP

In the capacity as PoP, IBL shall be responsible for following broad functions :

• Registration
• Initial Contribution
• Subsequent Contribution
• Service Request

Application Forms for Registration/Contribution/Service Requests can be obtained from IndusInd Bank branch or can be downloaded from :  https://npscra.nsdl.co.in

Fee Structure

*Minimum Rs.20 and Maximum Rs.25,000 per contribution

Exit from National Pension System (NPS)

A subscriber can exit from National Pension System (NPS) only in accordance with PFRDA (Exits and Withdrawals under NPS) Regulations, 2015 available on www.pfrda.org.in.  The Central Recordkeeping Agency (CRA) has been entrusted with the responsibility of receiving instructions related to all types of withdrawals, processing and settlement of all such claims.  CRA has created a specific Claim Cell called NPS Claim processing cell (NPSCPC) for processing all claims.

Details of CRA Claim cell

Mr.Sarvdeep Singh / Mr. Sudhanshu Shekhar
NPS Claim Processing Cell, Central Record Keeping Agency, NSDL, 4th Floor, ‘A’ Wing, Trade World, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel, Mumbai – 4000013
022-24994512 ; 022-24994862 ; 022-249904200 (Board)
sarvdeepS@nsdl.co.in ; sudhanshus@nsdl.co.in

SENIOR LEVEL CONTACT PERSON
Mr.Prasenjit Mukherjee ( prasenjitM@nsdl.co.in )

Steps to follow:

• Receipt of Withdrawal Claim Intimation from subscriber/PAO-DTO-DDO /POP/Aggregator
• Receipt of completed Documentation from Subscriber/ PAO-DTO-DDO /POP/Aggregator
  
  Withdrawal Application Form / Original PRAN/notarized affidavit if original not submitted Photo ID Proof  /  Residence Proof /  Direct Credit mandate  /  Annuity Application Form
  Cancelled Cheque/Bank certificate/copy of passbook  with photo and all details like IFSC, A/c No. , Branch Address , Death Certificate in original, if claim is for benefit arising from death of subscriber /  Legal heir certificate wherever applicable
• Receipt and Processing of Claim made, as per exit guidelines by CRA Claim Cell  and resulting in intimation of deficiencies / requirements, if any
  • Approval of Claim withdrawal by CRA Claims Cell basing on entitlement as per NPS credit rules
  • Instructions to PFM and TB for crediting lump sum withdrawal
  • Forwarding Annuity form to ASP account as per instructions in withdrawal application by subscriber
• Intimation to Subscriber/Govt/POP on the settlement with full   details. Closure of claim as completely settled account.

Disclaimer

NPS is launched & regulated by PFRDA- A GOI regulatory body . NPS is not a product/offering/recommendation / advise / solicitation by Indusind Bank. Indusind Bank acts only as a Point of Presence registered with PFRDA to facilitate processing of NPS related services. NPS corpus may be invested in market related instruments as per guidelines of PFRDA . These instruments may carry market related and other risks and Indusind Bank shall not be responsible for any losses/changes in fund value or NAV of the amount invested. Indusind Bank doesn’t guarantee any returns. Indusind bank makes available NPS related services and doesn’t recommend choice of any scheme, allocation or fund manager, this being solely at customer discretion. Contribution payments are subject to PoP Service charges & applicable taxes, thus actual amount invested will be net of charges & taxes. Any application made by subscriber already registered is liable to be rejected. Third party payments are not allowed in Tier II contributions. Kindly refer pfrda.org.in to understand risks, CRA charges and other factors before investing. Past Performance May or May Not Be Sustained In The Future.