National Pension Scheme 2024: Interest Rate and Eligibility

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A national pension scheme is an initiative of the Government of India. It is a pension cum investment scheme. This initiative has been started with the objective to provide financial security to the citizens of the country during old age when they are not able to earn their own livelihood by themselves. In this article, you will get detailed information about the National Pension Scheme including eligibility criteria, the interest rate calculator application process and many more.

What Is National Pension Scheme?

The National Pension Scheme is regulated by the Pension fund regulatory and Development Authority. The authority has established the National pension system as a registered owner of all assets under NPS. The scheme can be classified into two categories:

Government sector
- Central government: From 1st January 2004, the scheme has been implemented by the central government for all employees of central autonomous bodies. Central Government employees contribute to the scheme every month from their monthly salary and a similar contribution is given by the employer of the employee.
- State government: similarly state government has also adopted the scheme. Employees of state government also contribute towards pension from their monthly salary along with matching contribution from the employer of the employee.
Private sector
- Corporates: A customized version of the scheme which suits the organization and its employees as well has been a doctor in the corporate sector within the purview of their employer-employee relationship.
- All citizens of India: From 1st May 2009, any individual not being covered by the above sectors has been allowed to join NPS architecture under all citizens of India sector.

Also Read: Atal Pension Yojana

Type of NPS account

NPS provides two types of accounts. These accounts are called tier 1 and tier 2.

Tire 1 account is a mandatory retirement account whereas tier 2 is a voluntary saving account associated with your PRAN.
You can withdraw from your tiredness to account more flexibly at any point in time.
You need not pay any kind of additional maintenance charges to get a tire 2 account, even if you do need not to maintain any minimum balance and a separate nomination facility for a tier 2 account is available.
To open a tire 2 account, you must have a tier 1 account and must be residing in India.

Highlights of the article

Name of the scheme: National pension scheme
Launched by: Government of India
Launched for: citizens of India
Benefits: pension benefits
Official website: npscra.nsdl.co.in

Features/ Benefits of NPS

A National Pension Scheme is an initiative of the Government of India
A similar contribution is made by the employee and employer both for the Pension fund
Advantages of portable account
Customized investment options
Low-cost structure
Option to stay invested till 70
Any individual will get tax benefits under section 80 CCD (1) within the overall selling of rupees 1.5 Lakh. Moreover, an Additional deduction for investment up to rupees 50000 in NPS is available exclusively under subsection 80 CCD (1B)
Pension funds are responsible for investing contributions accumulating them and managing pension corpus
Under NPS you can invest with two approaches:
- Active choice: subscribers select the allocation percentage in acid classes
- Auto Choice: funds are automatically allocated amongst a set class in a predefined Matrix based on the age of the subscriber
Under NPS you can open two types of accounts as detailed above
NPS subscribers will also get the tax benefits on partial withdrawal, annuity purchase, and on lump sum withdrawal
You can register up to three nominees for your NPS
A minor can be a nominee for the NPS

Contribution Criteria

Tier 1
- Minimum amount per contribution is rupees 500
- The minimum contribution per financial year is Rs 1000
- Minimum number of contributions in a financial- 1
Tier 2
- The minimum amount per contribution is rupees 250

Eligibility

Should be an Indian citizen
Age should be in between 18- 70 years

Requirements For Account Opening Under NPS

Valid mobile number
Valid email ID
An active bank account with a net banking facility
PAN number/ driving license/Aadhar card
Canceled cheque scan copy
Photograph
Signature

Also Read: Saral Pension Yojana

National Pension Scheme Online Registration

To register you need to visit the National Pension website of the National Pension System Trust
From the open page you need to choose the National pension system

National Pension Scheme Official Website

Now click on the registration option and the application form will open on the screen
Choose appropriate options as shown on the screen and select any of the following optionAadhaar number/ Virtual ID/ offline KYC

Process To Do Registration — Registration

Enter the details accordingly and click on generate OTP button
You will receive an SMS along with OTP
Follow the screen and complete the application form
Upload the significant documents and submit it

Procedure To Make Subsequent Contribution

You need to visit the official website of the National Pension System Trust
From the home page of the portal, you need to choose the National pension system
Click on the contribution option and a new page will open on the screen

Provide the required information such as permanent retirement account number, date of birth, NPS subscriber type, request OTP via and capture code
Press verify PRAN option and you will receive in OTP
Enter the OTP and make your contribution by following the screen

Procedure To Get Annual Transaction Statement

To get the annual transaction statement you need to visit the official website of the National Pension System Trust
From the homepage of the portal, you need to choose the National pension system
Now you need to click on the annual transaction statement on email

A new page will open on the screen where you need to enter your PRAN number
Enter the capture code shown on the screen and press submit button
Follow the screen and complete the rest formalities and you will receive the annual transaction statement via email.

Exit/ Withdrawal

A beneficiary can exit or withdraw from NPS in the following conditions

When he/ she reaches the age of superannuation/ attaining 60 years of age
In case of premature exit from NPS at least 80% of the accumulated pension of the subscriber has to be utilized for the purchase of an annuity
The entire accumulated pension would be paid to the nominee/ legal heir of the subscriber in case of death of the subscriber

Procedure To Submit Withdrawal/ Exit Form

You can submit the withdrawal by downloading the application form available on the official portal or by clicking the below available links. You need to submit the withdrawal application along with the necessary documents to the subscriber’s nodal office.

Find Your Nearest POP-SP

You should open the official website of the NSDL e-Gov portal
From the home page go to the important links
Look for the “Find your nearest POP-SP” option

A new page will open choose the state
Then choose location and the list will open on the screen

Generate Password

You should open the official website of the NSDL e-Gov portal
From the home page go to the important links
Look for the “Generate Password” option

A new page will open where you need to enter the following information
- Reset IPIN via
- PRAN
- DOB
- Click To View Calendar (dd/mm/yyyy)
- New Password
- Confirm Password
- Enter Captcha
Press submit button and the password has been generated

Annuity calculator

You should open the official website of the NSDL e-Gov portal
From the home page go to the important links
Look for the “Annuity calculator” option

A new page will open select Government Sector Subscriber or Private Sector Subscriber
Enter the following details like date of birth, gender, marital status, etc.
Enter the captcha and all other information and press submit button
Information will show on the screen

Procedure To Track PRAN Card status

You should open the official website of the NSDL e-Gov portal
From the home page go to the important links
Look for the “Track PRAN Card status” option

A new page will open choose any of the following
- New Registered PRAN
- Re-issued PRAN
- Re-issued Password/T-PIN
Enter the PRAN and PPAN number and captcha code
Press submit button and status will show on the screen

Track PRAN Application status

You should open the official website of the NSDL e-Gov portal
From the home page go to the important links
Look for the “Track PRAN Application status” option

A new page will open choose any of the following
- Subscriber Registration Request Status
- Subscriber Photo-Signature Update Request Status
Enter the following details
- PRN/Ack No.
- PAO/DTO/POP-SP/CBO Reg. No.
- Enter Captcha
Press the search button and information will show on the screen

Registration And Contribution Status

You should open the official website of the NSDL e-Gov portal
From the home page go to the important links
Look for the “Registration and Contribution status” option

A new page will open, enter the receipt number and captcha code
Press the search button and information will show on the screen

Find Nearest Trustee Bank Account

You should open the official website of the NSDL e-Gov portal
From the home page go to the important links
Look for the “Find Nearest Trustee Bank Account” option
Click it and the further option “click here to download” will show
Click on it and the file will start downloading

Procedure To Find nearest NL-CC

You should open the official website of the NSDL e-Gov portal
From the home page go to the important links
Look for the “Find nearest NL-CC” option
Click it and the further option “click here to download” will show
Click on it and the file will start downloading

Find your nearest CRA-FC

You should open the official website of the NSDL e-Gov portal
From the home page go to the important links
Look for the “Find your nearest CRA-FC” option
A new page will open, select city, and press the go button
The List will appear on the screen

Helpline

Toll-Free Number- 022 2499 3499

National Pension Scheme 2024: Interest Rate Calculator and Eligibility