NPS is a voluntary contribution of funds for a sustained period of time (till the age of 60 years) to enable you to draw pension after you attain 60 years of age. The scheme has been introduced by the Government of India and is monitered by the Pension Fund Regulatory and Development Authority (PFRDA).

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Any Indian citizen between the age of 18 and 70 years. (1st Sep'21)

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Yes, an NRI can open an NPS account. Contributions made by NRI are subject to regulatory requirements as prescribed by RBI and FEMA from time to time. If the subscriber’s citizenship status changes, his/her NPS account would be closed.

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No, multiple NPS accounts for a single individual are not allowed and there is no necessity also as the NPS is fully portable across sectors and locations.

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The following table provides the complete information on the minimum contribution requirements:

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Yes. Investment in NPS is independent of your subscription to any other pension fund.

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Yes. Investment in NPS is independent of your contribution to any provident fund.

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No. The return on investment will be market-linked.

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No, there is no upper limit on maximum amount of contribution per year.

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NPS is distributed through authorized entities called Points of Presence (POPs) and almost all the banks (both private and public sector) are enrolled to act as Point of Presence (POP) under NPS apart from several other financial institutions. To invest in NPS, you will be required to open a NPS account through the Point of Presence (POP) and who will assist the subscriber in opening the account including the filling up of necessary forms, providing the information about NPS and any other relevant information in this regard.

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Points of Presence (POPs) are the first points of interaction of the NPS subscriber with the NPS architecture. The authorized branches of a POP, called Point of Presence Service Providers (POPSPs), will act as collection points and extend a number of customer services to NPS subscribers including requests for withdrawal from NPS.

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POP-SP location can be accessed through website of PFRDA. This can also be accessed through below mentioned link of CRA website:
https://www.npscra.nsdl.co.in/pop-sp.php

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CRA stands for “Central Record Keeping Agency”. It is managed by NSDL and its main function is record keeping, administration and customer service for all subscribers of the NPS.

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Subscriber can check the status by accessing CRA website: https://cra-nsdl.com/CRA/ by using the 17 digit receipt number provided by POP-SP or the acknowledgement number allotted by CRA-FC at the time of submission of application forms by POP-SP. Once the PRAN is generated, an email alert as well as a SMS alert will be sent to the registered email ID and mobile number of the subscriber.

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The following documents need to be submitted to the POP for opening of a NPS account: a. Completely filled in subscriber registration form b. Proof of Identity c. Proof of Address d. Age/date of birth proof.

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Yes, switching from Tier 2 to Tier 1 is allowed at any time.

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 Switching to Tier 2 is restricted, subject to Exit & Withdrawal regulations.

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There are four asset classes:

Asset Class E: Equity and related instruments

Asset Class C: Corporate debt and related instruments

Asset Class G: Government Bonds and related instruments

Asset Class A: Alternative Investment Funds, including CMBS, MBS, REITS, AIFs, Invlts, etc.

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 No, all asset classes must be specified under a single Pension Fund Manager.

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