NPS: What are the Features of the Retirement Account?

Every individual subscriber is issued a Permanent Retirement Account Number (PRAN) card and has a 12 digit unique number. In case of the card being lost or stolen, the same can be reprinted with additional charges.

Multiple NPS accounts are not allowed and there is no necessity also as the NPS is fully portable across sectors and locations.

Under NPS account, two sub-accounts - Tier I & II are provided. Tier I account is mandatory and the subscriber has option to opt for Tier II account opening and operation.

The following are the salient features of these sub-accounts:

Tier-I account: This is a non-withdrawable retirement account which can be withdrawn only upon meeting the exit conditions prescribed under NPS.

Tier-II account: This is a voluntary savings facility available as an add-on to any

For All citizens model

Tier I

Minimum Contribution at the time of account: Rs. 500
Minimum amount per contribution Rs. 500
Minimum total contribution in the year Rs. 6000 Rs. 2000
Minimum frequency of contributions 1 per year 1 per year

Tier II

Minimum Contribution at the time of account opening: Rs. 1000
Minimum amount per contribution: Rs. 250
Minimum total contribution in the year: Rs. 2000
Minimum frequency of contributions 1 per year

The NPS offers two approaches to invest subscriber's money:

Active choice - Here the individual would decide on the asset classes in which the contributed funds are to be invested and their percentages (Asset class E(maximum of 50%), Asset Class C, and Asset Class G ).

Auto choice - Lifecycle Fund- This is the default option under NPS and wherein the management of investment of funds is done automatically based on the age profile of the subscriber.

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