• What is NPS?

  National Pension System (NPS) is a defined contribution based pension scheme wherein the subscriber contributes to his/her account regularly. Any Citizen of India with age between 18 to 70 years can join NPS. Under NPS, individual savings are pooled in to a pension fund which are invested by PFRDA regulated professional fund managers as per the approved investment guidelines in to the diversified portfolios comprising of Government Bonds, Bills, Corporate Debentures and Shares. On joining NPS, the subscriber is allotted a unique Permanent Retirement Account Number (PRAN). The subscriber contributes towards NPS and these contributions would grow and accumulate over the years, depending on the returns earned on the investment made.

• What are different NPS models?

  There are 2 models, namely - Corporate NPS model and All Citizen model. Corporate NPS model is applicable for all corporate employees wherein the corporate is registered with the Bank for NPS.

  NPS model	Description
  Corporate Model	This model is applicable for the employees working with corporate organisations. Under this model, employee as well as employer (on behalf of employee) both can contribute towards NPS account of employee
  All Citizen Model	Citizens of India who are financially not dependent on any employer like self-employed category, professionals like doctors, CAs, CS, CMAs, lawyers, architects etc.

• What are the investment options available under NPS?

  There are 4 types of individual funds in which your money can be invested:

  • Asset Class E- Investment in predominantly equity market instrument
  • Asset Class C-Investment in fixed income instruments other than Government Securities
  • Asset Class G- Investment in Government Securities
  • Alternate Assets Class A – Investment in Real Estate and Infrastructure projects

Based on these, there are 2 investment options available under NPS corporate:

Active choice - In active choice, you have to select a Pension Fund Manager and mention the ratio of funds to be invested among E, C, G and A. You can specify the percentage in which your money is to be invested in these asset classes. However, allocation in equity cannot be more than 75% and Alternate Assets cannot be more than 5%.

Auto choice - There is a lifecycle fund and you need to select a pension fund. Your funds will be invested as per the life cycle fund matrix based on your age.

You will have flexibility to choose one out of ten Pension Fund Managers (PFMs) and the percentage in which the selected PFM will invest the funds.

• Will I have an option to select Pension Fund (PF) and Investment Option?

  Yes, you have an option to select Pension Fund (PF) and Investment Option while applying for NPS account.

• Who can Invest Online ?

  • A citizen of India between the age group of 18 years & 70 years
  • Enter PAN Details
  • Keep Scan copy of Cheque ( IndusInd Bank only), Photograph & Signature ready for upload
  • Enter Personal Details
  • On entering personal details an acknowledgement number will be generated.
  • Enter contact details. Please enter address as provided at the time of opening IndusInd Bank account.
  • Enter IndusInd Bank Account details
  • Select scheme details & the allocation thereof.
  • Enter nomination details.
  • Upload Photo, Signature and Cheque Copy.
  • Provide FATCA declaration
  • Subscriber will be redirected to IndusNet to payments section to make contribution to NPS.
  • Complete E-Sign. E-Sign eliminates the need to send the application form to K-Fintech CRA

• How can I open an NPS account online?

  • NPS option is available on IndusInd Website under Personal>> Investments >> NPS (https://www.indusind.bank.in/content/home/personal-banking/products/investments/nps.html)
  • Once the user navigates to the NPS page, user will click on “Apply Online”.
  • When the “Apply Online” is clicked, NPS charges of CRA which is KFintech will be displayed as pop-up with a tab to “Continue”
  • When visitor click on “Continue” it will direct customer to KFintech’s page through secure call
  • KCRA will show ‘Pre-requisite of PAN based verification’ in a pop-up window – scanned copy of photo, cancelled cheque & Signature proof. Customer will click on ‘OK’
  • KFintech CRA system will provide the multiple option to user like, New Registration, Complete Pending Registration, Download application form and sign. The User will select “New Registration”
  • The registration page will ask customer to select – 
    1. Applicant type – Individual/Corporate. Customer has to select Individual
    2. Status of Applicant as Resident of India
    3. Register with PAN
    4. Account type – Tier I or Tier II
    5. Enter PAN Number
    6. Select Bank name (here IndusInd Bank Ltd. will appear by default)
  • KFintech CRA will validate PAN number entered by customer
  • On success, Subscriber will be asked to enter Personal details which includes mandatory field of – 
    1. Title
    2. First Name
    3. Father’s first name
    4. Mother’s first name
    5. DOB
    6. City & Country of Birth
    7. Gender
    8. Marital status
    9. Mobile Number
    10. Email ID
    11. Captcha
  • Subscriber will click on “Generate Acknowledgment Number” and receipt will be generated. Subscriber can “Print” or “Save” the receipt. He will click on “Continue” to complete the registration process.
  • In parallel, Subscriber will receive SMS of Acknowledgment as – “You have successfully initiated the NPS Account opening process on DD-MM-YY. Your Ack No. is xxxxxxxxxxx. – KFintech CRA”
  • When clicked on “Continue”, next page of “Contact Details” will appear. Here subscriber will fill Correspondence details & Permanent Address. The address of correspondence should be same as given in IndusInd Bank account. It is displayed on webpage to enter Bank Address. Customer will fill details for type of account (Tier 1/Tier 11), contribution amount, pension fund manager and nominee details
  • Investment option provided is – Active & Auto mode. Subscriber will choose the type of investment. KCRA auto populates details basis type of investment as prescribed by PFRDA
  • Customer will have option to upload his photo by upload photo. He will further upload his signature & cancelled cheque copy
  • Customer will provide FATCA details as per the purpose of taxation
  • Customer will tick mark the declaration box
  • Customer will provide payment details of amount investing in Tier 1 &Tier 2 accounts
  • All applicable charges (Summary) with total amount will be shown to subscriber on screen
  • Subscriber will provide Declaration & PML Authorization
  • IndusInd bank name will appear in the field of “payment method”
  • He will click on “Make Payment” tab
  • A pop-up will appear for confirmation. Subscriber will click on “continue”
  • A pop-up will appear with photo & signature of subscriber to be printed on PRAN card
  • Subscriber will click on “Confirm”
  • KFintech CRA system will connect to IndusNet gateway of IBL
  • Subscriber will login with IndusNet login ID & Password and completes the payment (debit customer a/c & credit Online NPS Pool a/c)
  • Net Banking will return the success or failed response to KFintech CRA system
  • After completion of transaction user will be redirected to KFintech website for payment completion and acknowledgement receipt
  • KFintech will prompt customer to submit form online by doing e-sign. Customer will accept declaration and enter the OTP received for e-sign. Alternatively, customer can take print of online form & send it to KCRA
  • In case the subscriber does not complete registration process, it can reinitiate same at later stage by choosing ‘Complete pending registration form’. Customer need to visit IndusInd website. When IndusInd website redirects customer to KCRA page, customer will click on “Pending registration” and continue from there
  • Upon successful registration customer will receive PRAN No. and later the PRAN Kit by KFintech within T+10 days
  • KFintech will send SMS & Email to subscriber of success of registration
  • Investment statement will be provided by KCRA to customers

• What are the minimum contribution requirements in NPS?

  Minimum Contribution Requirements

  For All Citizen Model	Tier-I	Tier-II
  Minimum Contribution at the time of account opening	Rs. 500	Rs. 1000
  Minimum amount per contribution	Rs. 500	Rs. 250
  Minimum total contribution in the Year	Rs. 1000	-
  Minimum total contribution in the Year	1 per year	-

• What is the cost that I will incur towards NPS account opening/ maintenance?

  There are certain charges applicable for NPS account opening/ maintenance. The charges are mentioned below:

  Intermediary	Charge Head	Service Charge**	Frequency of deduction	Mode of deduction
  POP (Service Provider)	Customer Registration	Rs. 200	One time	Deducted upfront from the contribution amount
  	Contribution Processing*	0.25%	On each transaction	-
  	Non–Financial Transaction Processing	Rs. 30	-	-
  	Persistency Charges	Rs. 50/- per annum for annual contribution Rs. 1000/- to Rs. 2999/- Rs. 75/- per annum for annual contribution Rs. 3000/- to Rs. 6000/- Rs. 100/- per annum for annual contribution above Rs. 6000/- (Only for NPS All Citizen) Payable to POPs if you are associated with that POP for more than 6 months in a financial year.	From NPS Account (by cancelling the units) on the last day of the calendar quarter	-
  	Processing of Exit / Withdrawal	@0.125% of Corpus with Minimum ₹125/- and Max ₹500/-	-	-
  CRA (K-Fintech)	PRAN Opening Charges	Rs. 39.36	One time	From NPS Account (by cancelling the units) on the last day of the calendar quarter
  	Welcome kit sent in physical	Rs. 39.36	One time	-
  	Welcome kit sent via email only	Rs. 4	One time	-
  	Annual PRAN Maintenance cost per account	Rs. 57.63	Per annum	-
  	Transaction Processing (Financial & Non-Financial)	Rs. 3.36	On each transaction	-
  CRA (NSDL)	PRAN Opening Charges	Rs. 40	One time	From NPS Account (by cancelling the units) on the last day of the calendar quarter
  	NPS Account Maintenance	Rs. 69	Per annum	-
  	Transaction Processing (Financial & Non-Financial)	Rs. 3.75	On each transaction	-

  *Minimum Rs. 30 and Maximum Rs. 25,000 per contribution

  Intermediary	Charge Head	Service Charge**
  Custodian	Asset Servicing charges	0.000000001770% per annum for Electronic segment & Physical segment
  PF charges	Investment Management Fee	Slabs of AUM managed by the Pension Fund	Maximum Investment Management Fee (IMF)
  		Upto 10,000 Cr.	0.09%*
  		10,001 – 50,000 Cr.	0.06%
  		50,001 – 1,50,000 Cr.	0.05%
  		Above 1,50,000 Cr.	0.03%
  		he IMF to be charged by the Pension Fund on the slab structure would be on the aggregate AUM of the Pension Fund under all schemes managed by Pension Funds.
  		These rates of IMF shall be reviewed by the Authority in a period of five (5) years from the date of implementation.
  		* UTI Pension Fund Limited charges a fee of 0.07% under this slab.
  NPS Trust	Reimbursement of Expenses	0.003% p.a
  KYC verification charges of eNPS application Rs 125 + taxes

• I already have NPS account. 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. If you want to link your NPS account to corporate, to avail the benefits under the Corporate NPS model, you should shift existing NPS account to corporate model.

• Will I get an alert once my contribution has been credited to my NPS Account?
  

  Yes, once the contribution is credited to your NPS Account, an e-mail alert as well as an SMS is sent to your registered e-mail ID and mobile number.

• Will I receive any physical statement for NPS Account?

  Yes. An annual statement containing details of the unit holdings is issued by Central Recordkeeping Agency (CRA) to your registered address 3 months after the end of every financial year.

• How do I get Statement Of Transaction (SOT) on ad-hoc basis?

  You can view/ print the SOTs by logging into CRA website.

• What happens if the minimum annual contribution of Rs. 1,000 is not invested in NPS Account?

  Your account will be frozen.

• What is the process of unfreezing the NPS Account?

  You can unfreeze the NPS Account by paying the minimum contribution.

• Can I change/ modify data in the NPS system after joining NPS?

  Yes. You need to submit the request form along with the service charge of Rs. 30 plus GST to the POP for initiating the modification. 
  You may also login to your NPS account and make changes to Contact details, Nomination, Investment option, Pension Fund Manager (PFM), etc

   

• Can I request for a duplicate PRAN card?

  Yes. In case of loss or damage of PRAN card, you need to submit a duly filled S2 form to the POP for issuance of duplicate PRAN card. Rs. 40 plus applicable GST will be deducted by CRA for issuing duplicate PRAN.

• Is a nomination facility available under NPS-Corporate Model?

  Yes, Nomination can be made by the employee.

• Who can be a Nominee, how many nominees can be there and how are the details to be filled in the form?

  Only an Individual can be a nominee. You will be allowed to register up to three nominees only. Decimals/ fractional values shall not be accepted in the nomination(s) percentage share value. Sum of percentage share of all the nominees must be equal to 100. If sum of percentage is not equal to 100, all nominations will be rejected. The registration of nominee details will not be done unless all details are duly filled up in the nomination form.

• Can a minor be a nominee?

  Yes, minor can be a nominee. In such case, you will be required to provide guardian's details and date of birth of the minor. Partial withdrawal from NPS Account/ Early Termination

• In case of PF, I can withdraw amount for the purpose of housing or children’s marriage etc. Do I have such facility under NPS?

  Early withdrawals in NPS are permitted for specific purposes like child’s marriage, higher education, treatment of critical illnesses etc. You can withdraw up to 25% of self-contributed amount towards NPS Account after 3 years of contribution. Additionally, you can withdraw from NPS Account twice. Every subsequent withdrawal will be 25% of the incremental self-contribution made after the last withdrawal.

• Do I have to pay any taxes at the time of withdrawal?

  • NPS is currently under the Exempt, Exempt, Exempt (EEE) which means it is tax free on contribution, accumulation and on maturity
  • 60% of corpus amount at the age of retirement can be withdrawn and is tax free.

• Can I exit before 60 years? Can I deactivate my NPS Account at any point of time?

  You can exit from NPS after 5 years or attainment of superannuation age (retirement age) defined by the corporate whichever is earlier. In case of exit before 60 years, 20% of the corpus can be withdrawn and the balance 80% goes to annuity.

• How will I receive the pay-out if I exit from NPS before? What happens to my investments under NPS if contribution is discontinued before retirement?

  Primary objective of NPS is to create a corpus which can be used at the time of retirement to buy pension for you/ your nominee. Hence, there is a restriction imposed on lump sum amount accessible on exit.

• When can I withdraw the amount?

  • Exit at the age of 60
  • Up to 60% of corpus can be withdrawn in lump sum. Balance amount needs to be invested in annuity
  • If the corpus is less than or equal to Rs. 5 lakh, there is no need to invest into annuity. Entire amount can be withdrawn in lump sum.