The National Pension Scheme (Government Pension Scheme) was started in 2004 for government employees only. All government employees were given benefits under this scheme. But it was again revised in 2009 and applied to all employees. Under the NPS, all the retired employees get benefits, and we will get information about this here, what is National Pension Scheme? And how is it beneficial for all citizens.

If you are working somewhere or there is someone in your house who works in an organization, and they do not know about it. So through the tips mentioned here, people can get information about the national pension scheme. And here we will get detailed information about all the important facts related to it.

What is National Pension Scheme

When a person retires from his post, he needs financial support. And National Pension Scheme helps such people financially. Today all the employees of the country save some money from their salary and keep it for their future.

What is National Pension Scheme?

When a person retires from his post, then after that person has regular income, then future planning has to be done for this. So that after retirement, the person does not face financial problem and he can spend his remaining life comfortably.

The full form of NPS is the National Pension Scheme. This is a government scheme under which all employees can save some money for their future.

The way people invest money in places like Mutual Funds Scheme, so that they do not have problems in future. Similarly, the NPS scheme is similar for all employees. Through this, he can keep some income for himself.

The National Pension Scheme was started in 2004, and at that time its benefits were limited to only a few types of government employees. But again in 2009 the government started it for all classes of employees. And today all types of employees can take advantage of it.

An employee who is in any government post, and he saves some money for himself and deposits it in the NPS scheme. So after some time he can withdraw some of the accumulated funds together, and the remaining one will continue to get some money regularly after retirement.

All employees of these classes can invest.
  • Central government employees

  • State government employees

  • Private sector employees

  • Common citizens

Who can join NPS scheme?

  • Any Indian citizen resident or non-resident can invest in this scheme.

  • A person of 18-60 years can invest in this scheme. Citizens can join the scheme as individuals and employer groups following the KYC process.

  • Non-Resident Indian (NRI) can also invest in this scheme. Contributions made by NRI are regularized by RBI and FEMA.

National Pension Scheme Account

If any person wants to take benefit of this under NPS account, then he will have to submit all the necessary documents given in the NPS scheme. And then that person is given a permanent retirement account number, which is known as PRAN (Permanent Retirement Account Number) by short name.

This account number always remains open once opened, and there are many types of accounts in NPS.

Tier 1 Account:

This account is for retirement and it is specifically for saving. If a person opens a Tier 1 account, then his account is non-withdrawing.

Tier 2 Account:

It is an account that is selected by the person himself and is also a saving account. In this, the customer can withdraw money whenever he wants, and no benefit is given for such an account.

Benefits of NPS

  • This is a very good and effective scheme, under which all employees can get good benefits. Employees can plan a future for themselves by saving a small part of their income.

  • The government has increased the exemption limit on final withdrawal from NPS to 60% from 40%.

  • The Government of India has decided to separate the NPS scheme from the Pension Fund Regulatory and Development Authority (PFRDA).

  • According to the new rule, NPS customer can claim deduction of up to 10% of gross income under section 80CCD (1) of the Income Tax Act in the total limit of the amount. Under Section 80CCE this limit is 1.5 lakhs.

  • Each Employee is identified by a Specific Number and has a different PRAN. Which is portable, meaning it remains the same even if the employee is transferred to another office. The NPS number is always the same, and it cannot be changed, only transfer from one office to another.

  • If you do not know about it, you can get information about it by calling 022-2499-3499, and this is its official helpline number. With this, all the necessary information related to the NSDL portal can also be found.

How to open National Pension Scheme Account Online?

Opening NPS account is very easy and anyone can easily do this work in 20 to 50 minutes. If you have an account in any of the 17 banks associated with National Security Deposit Limited (NSDL), you can open NPS account through this guide.

Required Documents:

If a person wants to open an account, he must have the following documents.

  • Mobile number

  • Email I’d

  • Photo

  • Signature

  • Active Bank Account

If you have all these necessary documents, then you are ready to open NPS scheme account and you can open the account by following some easy steps.

Step 1. You open the NSDL Portal and click on the National Pension Scheme button. Your registration process will start from here.

Step 2. Now click on the registration button and enter all the necessary information, there you will have to fill in the information like applicant type, and then you can process the form.

To register on this, you have to provide some such information.

  • Applicant Type

  • Status of Applicant

  • Register With

  • Account Type

  • Enter PAN

  • Select your Bank / POP

Here you will get to see the list of the entire bank, and you can select your bank from here. In which you want to open account.

Step 3. Then you have to verify the complete detail and pay a charge of Rs 125. And then you can submit the form by uploading photo, signature. After that, information about it will be sent to your phone.

If there is any kind of problem in opening an NPS account, then NPS helpline number 1800110708 can be contacted. This toll-free number is for all new and old subscribers to solve their problems.

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Friends, what is National Pension Scheme (NPS), and how can you apply for it? You can get information about this through this post. And you can submit application for online NPS account. If you have any question or suggestion, then you must tell in the comment and share this post on your social media profile, so that people can know about it.