The National Pension System (NPS) is a government-sponsored retirement planning tool, which gives the investor the option to set preferred allocations for various asset classes, such as government bonds, equity market instruments and corporate debt.
It is a long term investment plan for retirement. NSDL (National Securities Depository Limited) is the central record keeping agency for the National Pension System. As part of the system, each employee is identified with a unique number and has a separate Permanent Retirement Account Number (PRAN). ,Read also: Assets under management under NPS, Atal Pension Yojana cross ₹6 lakh crore ,
National Pension System (NPS): Key Points to Know,
How to open NPS account:
According to the National Securities Depository (NSDL), the NPS account can be opened by a citizen in the age group of 18-65 years. Account can be opened through online or offline mode.
According to NSDL, subscribers can either apply for NPS account by visiting Point of Presence (POP) or apply online through e-NPS website- enps.nsdl.com/eNPS.
Types of NPS Accounts:
NPS offers two types of accounts: Tier 1 and Tier 2. Tier 1 NPS account is a pension account which does not allow withdrawal. Whereas, Tier 2 NPS account – better known as investment account – is a voluntary savings account linked to PRAN. As per NSDL, Tier II offers more flexibility in terms of withdrawals.
In the NPS account, the subscriber is allowed to check the investment amount or balance on a daily basis. Central government customers have the option to select Pension Fund (PF) and investment pattern in Tier I account.
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