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).
Who can subscribe to the NPS and what is the age limit?
Any Indian citizen between the age of 18 and 70 years. (1st Sep'21)
Can an NRI open an NPS account?
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.
Can I have more than one NPS account?
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.
Are there are minimum annual contribution requirements under NPS?
The following table provides the complete information on the minimum contribution requirements:
For All citizens model
Minimum Contribution at the time of account opening
Minimum amount per contribution
Minimum total contribution in the year
Minimum frequency of contributions
1 per year
1 per year
I have invested in pension funds of non-government/ private entities? Can I still invest in NPS?
Yes. Investment in NPS is independent of your subscription to any other pension fund.
If I have invested in any other provided fund, Can I still invest in NPS?
Yes. Investment in NPS is independent of your contribution to any provident fund.
Are the returns on my investment guaranteed?
No. The return on investment will be market-linked.
What is transaction cost to be borne by the subscriber?
Method of Deduction
PRA Opening Charges
Through cancellation of units at the end of each quarter.
Annual PRA Maintenancecost per account
Charge per transaction
Initial subscriber registration
Maximum Permissble charge for each subscriber
Initial contribution upload
0.25% of the initial contribution amount from subscriber subject to a minimum of Rs. 20/- and a maximum of Rs. 25,000/-
To be collected upfront
Any subsequent transaction involving contribution upload
0.25% of the amount subscribed by the NPS subscriber subject to a minimum of Rs. 20/- and a maximum of Rs. 25,000/-
Any other transaction not involving a contribution from subscriber
What is the maximum amount of contribution in a year?
No, there is no upper limit on maximum amount of contribution per year.
How and where can I open a NPS account?
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.
Who is a POP/POP-SP and what is their role?
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.
How can we find location/address of POP-SP nearest to the place where I live for opening a NPS account?
POP-SP location can be accessed through website of PFRDA. This can also be accessed through below mentioned link of CRA website:
What is CRA?
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.
How will I know about the status of my PRAN application form?
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.
What are the documents that need to be submitted for opening a NPS account?
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.