NPS FAQs
Below are the FAQs you must go through to know about general questions on National Pension System(NPS)
What is the National Pension System (NPS)?
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).
Any Indian citizen between the age of 18 and 70 years. (1st Sep'21)
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 | 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. 6000 | Rs. 2000 |
| Minimum frequency of contributions | 1 per year | 1 per year |
What is transaction cost to be borne by the subscriber?
| Intermediary | Charge Head | Service Charges | Method of Deduction |
| CRA | PRA Opening Charges | Rs. 50/- | Through cancellation of units at the end of each quarter. |
| Annual PRA Maintenancecost per account | Rs. 190/- | ||
| Charge per transaction | Rs. 4/- | ||
| Initial subscriber registration | Rs. 100/- | ||
| POP 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 | Rs. 20/- |
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.
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.
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.