NPS is an easily accessible, low cost, tax-efficient, flexible and portable retirement savings account. NPS is a defined contribution based pension scheme wherein the subscriber contributes to his / her account regularly. The accumulated wealth would depend on the contributions made and the income generated from investment of such wealth.

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 Online ?

- A citizen of India between the age group of 18 years & 65 years

Steps for Online Account Opening:-

• Subscriber can apply by clicking on “Apply Online” option under National Pension Scheme (NPS).
• Subscriber to select the applicant type as Individual & register with Aadhaar.
• Subscriber can select the account type as Tier I or Tier I & Tier II account.
• e-KYC will be done through Aadhaar (OTP based authentication)
• Acknowledgement ID will be generated based on data fetched from Aadhaar and contact details entered by the Subscriber. There will be provision to complete the registration latter on basis this Acknowledgment ID.
• Subscriber to enter remaining details like Bank details, scheme details, nominee details, employment details etc.
• Subscriber to select the Pension Fund Manager and Investment option
• Upload of signature is mandatory. Photo will be fetched from Aadhaar with an option to change.
• Upload of Chq copy and PAN copy is required only for opening Tier II account.
• Subscriber will be directed to IndusNet for payment.
• On successful payment the PRAN will be allotted.
• Subscriber to digitally sign the form (e-Sign) which eliminates the requirement to send the physical form.

For any queries/ grievance please write to us at customercare@indusind.com

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 NPS Accounts

There are two type of NPS accounts – Tier I & Tier II NPS accounts

Tier-I account

• Tier-I account is mandatory for opening NPS account.
• This is a restricted account and withdrawals are subject to meeting certain terms and conditions prescribed under NPS.
• Tax Benefits are associated with this account.

Tier-II account

• This is a voluntary savings facility available as an add-on to any Tier-1 account holder.
• Subscribers are free to withdraw their savings from this account.
• There are no tax benefits associated with Tier-II account.

Minimum Contribution Requirements

Investment Choices

NPS offers 2 approaches to invest

Active Choice

Subscriber can actively decide as to how the funds are to be invested across asset classes and their percentages. Asset class Equity (E), Corporate Bonds (C) & Govt . Securities (G).

Auto Choice

Subscriber has the choice of three life-cycle funds i.e. Aggressive Life cycle fund, (LC-75), Moderate Life cycle Fund (LC-50) and Conservative Life cycle Fund(LC-25). Investment is made from a life-cycle approach. Allocation is progressively decreased in Equity & increased in Bonds & Govt Securities.

How are the funds managed under NPS?

The funds contributed by subscribers are managed by PFRDA registered Pension Funds.

At present, Subscriber has option to select any one of the following eight pension funds:

• HDFC Pension Management Company Ltd
• ICICI Prudential Pension Fund
• LIC Pension Fund Ltd
• Kotak Mahindra Pension Fund
• Reliance Capital Pension Fund
• SBI Pension Fund
• UTI Retirement Solutions Pension Fund
• Birla Sunlife Pension Management Ltd.

Charges under NPS

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

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.