What is National Pension Scheme 2024 : Benefits, Eligibility, Apply Online

The Indian government introduced the National Pension Scheme, an investment-based pension scheme. The Pension Fund Regulatory and Development Authority oversees and manages the program. The Indian government created it primarily to give older persons in India financial stability. In this post you get every necessary information regarding this scheme such as benefits, objectives, eligibility criteria, required documents, apply online and much more.

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What Is National Pension Scheme 2024

The Central Government’s social security program is called the National Pension Scheme (NPS). Employees in the public, private and even unorganized sectors are eligible for this pension plan, with the exception of those in the military services. Throughout their career, the program encourages participants to make monthly contributions to a pension account. The subscribers may withdraw a certain portion of the corpus upon retirement.

After you retire, the balance will be paid to you as an NPS account holder as a monthly pension. Previously, only workers of the Central Government were covered by the NPS plan. Employees of the Central Government hired on or after 1 January 2004 are required to be covered by the NPS. But now, on a voluntary basis, the PFRDA is available to all Indian people.

Overview Of National Pension Scheme 2024

Name of the Scheme	National Pension Scheme 2024
Launched By	Central Government of India
Beneficiaries	Citizens
Objective	To promote saving and offer social security to all Indian residents
Official Website	https://enps.nsdl.com/eNPS/NationalPensionSystem.html

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Objective Of National Pension Scheme 2024

The program enables systematic savings throughout a person’s working years, encouraging them to practice financial discipline and prepare for the future.

Benefits Of National Pension Scheme 2024

• Under Section 80C: Up to Rs.1.5 lakh in tax savings are available to subscribers.
• Under Section 80CCD(1B): It is possible to deduct an extra Rs.50,000 for NPS payments.
• Under Section 80CCD(2): Tax deductions are available for employer contributions up to 10% of the salary.
• Long-term Retirement Savings Growth: In order to guarantee a sizable retirement corpus, the NPS promotes long-term savings and investment development.
• NPS Interest Rate: When compared to other fixed-income instruments, the market-linked returns on NPS investments have traditionally provided competitive returns.
• Low Cost Structure: NPS is an inexpensive investing choice because of its reasonable management fee structure.
• Compounding Benefits: Compounded returns over time and consistent contributions facilitate the building of a sizable retirement corpus.

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Eligibility Criteria

• Must be a non-resident Indian (NRI) or an Indian citizen, either a resident or non-resident.
• Age range should be 18-70 years old.
• must adhere to the Know Your Customer (KYC) guidelines as stated in the application.
• In accordance with the Indian Contract Act, one must be legally qualified to execute a contract.
• NPS subscriptions are not available to Persons of Indian Origin (PIOs), Overseas Indian Citizens (OCIs) or Hindu Undivided Families (HUFs).
• Since NPS is a personal pension account, it cannot be created on someone else’s behalf.

Account Types in NPS

Tier I Account

• Features: All NPS users are required to have this account, which is mostly used for retirement savings.
• Benefits: Members of the national pension plan are eligible for tax benefits, and they can take partial withdrawals for certain uses including marriage, further education and medical care.
• Restrictions: Until retirement, withdrawals from Tier I funds are not permitted.

Tier II Account:

Features: This is an optional savings account with more withdrawal freedom.

Benefits: There is no time limit on withdrawals, and money is not locked in.

Differences from Tier I: Tier II accounts do not qualify for Section 80C tax advantages, in contrast to Tier I accounts.

Offline Process

• You must locate a PoP Point of Presence that is registered with the PFRDA in order to start an NPS account offline or manually. This PoP Point of Presence may be a bank. Get a subscriber form from the PoP closest to you, fill it up and send it in with the KYC documents. If you already have KYC compliance with that bank, disregard that.
• Following your initial deposit of at least Rs. 500, Rs. 250 per month, or Rs. 1,000 per year, you will get a PRAN (Permanent Retirement Account Number) from PoP.
• You may manage your account with the use of this number and the password found in your sealed welcome package. For this procedure, there is a one-time registration charge of Rs. 125.

Online Process

An NPS account may now be opened in less than 30 minutes. If you link your account to your PAN, Aadhaar and mobile number, opening an account online at enps.nsdl.com is simple. The OTP that was delivered to your mobile device can be used to verify the registration. You may use this to generate a PRAN (Permanent Retirement Account Number) for NPS login.

Login To National Pension Scheme Account For The First Time

• You need to have a 12-digit Permanent Retirement Account Number (PRAN) in order to access your NPS account. To obtain PRAN, submit the required paperwork at the Point of Presence (POP) service providers or on the NSDL website.
• First you have to visit the Official Website of the NSDL CRA.

• Enter your PRAN, Date of birth, New password, Confirm password.
• Enter the captcha code.
• Click on the submit button.
• You can use the IPIN that is produced to log into the NSDL portal.
• Go to the NSDL eNPS website, log in, and select Login with PRAN/IPIN.
• Use your IPIN and PRAN to log into your NPS account on the next page.

FAQ’s