NPS FAQs
Below are the FAQs you must go through to know about general questions on National Pension System(NPS)
Frequently Asked Questions
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)
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.
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.
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 |
Yes. Investment in NPS is independent of your contribution to any provident fund.
No. The return on investment will be market-linked.
| 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/- |
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.
Subscriber can check the status by accessing CRA website: https://cra-nsdl.com/CRA/ by using the 17 digit receipt number provided by POP-SP or the acknowledgement number allotted by CRA-FC at the time of submission of application forms by POP-SP. Once the PRAN is generated, an email alert as well as a SMS alert will be sent to the registered email ID and mobile number of the subscriber.
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.
Points of Presence (POPs) are the first points of interaction of the NPS subscriber with the NPS architecture. The authorized branches of a POP, called Point of Presence Service Providers (POPSPs), will act as collection points and extend a number of customer services to NPS subscribers including requests for withdrawal from NPS.
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.
Yes. Investment in NPS is independent of your contribution to any provident fund.
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