NPS investment is being made more investor-friendly and in similar direction last year, the PFRDA allowed change in Nomination in the instrument through online means. The NPS managing authority PFRDA also started off with e-Sign facility to allow change in nomination on an online basis.
New NPS nomination rules that investors in NPS should be knowing:
1. The nomination can be made in the name of one or person from the subscriber's family in case the subscriber has a family at the time of making the nomination.
2. The nominee or nominees under NPS will be entitled, to get, to the exclusion of all other persons, all such money which has so remained unpaid, on the death of the subscriber.
3. Any nomination which is not made in favour of the subscriber's family shall be deemed invalid.
4. Upon marriage, fresh nomination has to be made and the previous subscription shall be considered invalid.
5. If at the time of making a nomination, the subscriber does not has a family, nomination can be in favour of any person. But then later he has a family then the previous nomination shall be considered invalid and fresh nomination in favour of one or two family members has to be made.
6. If the child of a subscriber [or as the case may be, the child of a deceased son of the subscriber] has been adopted by another person, such a child shall be considered as excluded from the family of the subscriber.
7. In case the nomination is partly or fully in favour of a minor then the subscriber need to appoint a major person to be the guardian of the minor nominee in the event of the subscriber predeceasing the nominee.
8. In a case there is no major person in the family then the guardian can be appointed outside of the family of the minor nominee.
9. Also, subscriber can change the NPS at any time, in case one writes to the designated intermediary for the purpose, expresses her desire to exclude her husband from the family, the husband and his dependent parents then they shall no longer consider as subscriber's family as part of the scheme.