Overview

National Pension System (NPS) is a defined contribution based pension scheme wherein the subscriber contributes to his/her account regularly. Any Citizen of India with age between 18 to 65 years can join NPS. Under NPS, individual savings are pooled in to a pension fund which are invested by PFRDA regulated professional fund managers as per the approved investment guidelines in to the diversified portfolios comprising of Government Bonds, Bills, Corporate Debentures and Shares.

On joining NPS, the subscriber is allotted a unique Permanent Retirement Account Number (PRAN). The subscriber contributes towards NPS and these contributions would grow and accumulate over the years, depending on the returns earned on the investment made

CONTRIBUTION + INVESTMENT GROWTH - CHARGES = ACCUMULATED PENSION WEALTH

Who can Invest Online ?

  • A citizen of India between the age group of 18 years & 65 years
  • Enter PAN Details
  • Keep Scan copy of Cheque ( IndusInd Bank only), Photograph & Signature ready for upload
  • Enter Personal Details
  • On entering personal details an acknowledgement number will be generated.
  • Enter contact details. Please enter address as provided at the time of opening IndusInd Bank account.
  • Enter IndusInd Bank Account details
  • Select scheme details & the allocation thereof.
  • Enter nomination details.
  • Upload Photo, Signature and Cheque Copy.
  • Provide FATCA declaration
  • Subscriber will be redirected to IndusNet to payments section to make contribution to NPS.
  • Complete E-Sign. E-Sign eliminates the need to send the application form to K-Fintech CRA
  •  Fields marked in * are mandatory to enter.

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

Features of National Pension System

Choice of fund option

NPS offers a range of investment options and choice of PFM.

Tax Benefits & Pension Planning

Various Tax Benefits available u/s 80 CCD 2 upto Rs 1,50,000/- + upto Rs 50,000/- u/s 80 CCD 1 (B) as well as plan for retirement income.

Ease of access

The NPS account can be managed online. Once NPS account is opened, online access credentials is provided by CRA (K-Fintech). Subscriber can login and view/manage his NPS account online.

Regulated

NPS is regulated by Pension Fund Regulatory and Development Authority (PFRDA).

Flexible Contribution mechanism

subscribers can increase / decrease contribution amount along with change in frequency as per his / her choice ( Under Sec 80 CCD 1(B))


Types of NPS Accounts

There are two types 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 the Tier-II account.

Minimum Contribution Requirements

For All Citizen Model

Tier-I

Tier-II

Minimum Contribution at the time of account opening

Rs. 500

Rs. 1000

Minimum amount per contribution

Rs. 500

Rs. 250

Minimum total contribution in the Year

Rs. 1000

-

Minimum frequency of contributions

1 per year

-

Investment Choices

NPS offers two investment approaches

  • Active Choice - A 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, a subscriber has the option to select any one of the following eight pension funds:

A. Pension Funds (PFs) for Government Sector

  1. SBI Pension Funds Pvt. Ltd.
  2. LIC Pension Fund Ltd.
  3. UTI Retirement Solutions Ltd.

B. Pension Funds (PFs) for Other than Government Sector

  1. SBI Pension Funds Pvt. Ltd.
  2. LIC Pension Fund Ltd.
  3. UTI Retirement Solutions Ltd.
  4. HDFC Pension Management Co. Ltd.
  5. ICICI Prudential Pension Fund Management Co. Ltd.
  6. Kotak Mahindra Pension Fund Ltd.
  7. Aditya Birla Sunlife Pension Management Ltd.
  8. Tata Pension Management Ltd.
  9. Max Life Pension Fund Management Ltd.
  10. Axis Pension Fund Management Ltd.


National Pension System Fees & Disclaimer

Charges under NPS

Intermediary Charge Head Service Charge** Frequency of deduction Mode of deduction
POP (Service Provider) Customer Registration Rs. 200 One time Deducted upfront  from the contribution amount
Contribution Processing* 0.25% On each transaction
Non – Financial Transaction Processing Rs. 30
Persistency Charges

Rs. 50/- per annum for annual contribution Rs. 1000/- to Rs. 2999/-
Rs. 75/- per annum for annual contribution Rs. 3000/- to Rs. 6000/- Rs. 100/- per annum for annual contribution above Rs. 6000/- (Only for NPS All Citizen)

payable to POPs if you are associated with that POP for more than 6 months in a financial year.

From NPS Account (by cancelling the units) on the last day of the calendar quarter
Processing of Exit / Withdrawal `@0.125% of Corpus with Minimum ₹125/- and Max ₹500/-
CRA (K-Fintech) PRAN Opening Charges Rs. 39.36 One time From NPS Account (by cancelling the units) on the last day of the calendar quarter
Welcome kit sent in physical Rs. 39.36 One time
Welcome kit sent vide email only Rs. 4 One time
Annual PRAN Maintenance cost per account   Rs. 57.63 Per annum
Transaction Processing( Financial & Non-Financial) Rs. 3.36 On each transaction
CRA (NSDL) PRAN Opening Charges Rs. 40 One time From NPS Account (by cancelling the units) on the last day of the calendar quarter
NPS Account  Maintenance Rs. 69 Per annum
Transaction Processing( Financial & Non-Financial) Rs. 3.75 On each transaction

*Minimum Rs. 30 and Maximum Rs. 25,000 per contribution

D-Remit Contributions:- For contributions made through D-Remit, Bank is eligible for trail commission @ 0.20% of the contribution amount (Minimum ₹ 15 and Maximum ₹ 10,000) similar to eNPS. The applicable charges would be recovered by unit deduction on periodical basis.

** For more details visit https://npstrust.org.in/charges-under-nps GST as applicable.

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.

Disclosures

For any queries/ grievance related to TAT for various activities please write to us at reachus@indusind.com.

Complaints on NPS

Refer the IndusInd Bank's Grievance Redressal Mechanism from here

You can also reach out to PFRDA's Office of Ombudsman

The Office of Ombudsman
Pension Fund Regulatory and Development Authority
Tower E, 5th Floor, E-500,World Trade Center,
Nauroji Nagar, New Delhi – 110029
Phone No: 011 - 4071 7900
Email Id: ombudsman@pfrda.org.in