The National Pension System (NPS) is a pension scheme regulated by the Pension Fund Regulatory and Development Authority (PFRDA), and was initially introduced for government employees and then in end 2009 for all citizens of India.
Under the NPS, individuals can invest money at regular intervals into your pension account and also have the option of taking a part of the corpus as lump sum amount and the balance in the form of fixed monthly income.
In the Union Budget 2015-16, the finance minister announced additional tax benefit of Rs 50,000 if you park money in the scheme, which is now a part of Sec 80CCD. The other benefit which was that one gets to invest in the scheme in equity as well.
However, the scheme did not kick off as planned, to lure more investors. The government has come up with some changes in features and functionalities.
Currently, NPS has more than one crore subscribers with total Asset Under Management (AUM) of more than Rs. One lakh crore.
Here are some changes made in NPS
|Sl no||Functionality||Present||Changes made|
|1||Contribution upload for shifted subscribers||Point of Presence (POPs) were previously allowed to upload the regular monthly contribution in the CRA system only for the subscribers pertaining to their associated Corporate.||Now, a POP can also upload the contribution for subscribers who have shifted from one of their associated Corporate to another associate Corporate.|
|2||One way switch||Currently, there is no provision for transfer of funds from Tier-II to Tier-I account.||Now, the POP can process a subscriber request to transfer funds from Tier II to Tier I account.|
|3||Upload of unequal contribution for Govt. employees||In case of Govt. sector employees, the Uploading Office is required to prepare and upload the contribution file wherein the Employee and Employer Contribution are equal for each subscriber.||This functionality will now allow the Uploading Offices to prepare and upload contribution files where Employer and Employee contribution amount are not same.|
|4||Processing of voluntary contribution for corporate subscribers through any POP||Currently, POPs are allowed to upload contributions for corporate subscribers only if the Corporate is associated with them.||the POPs can process the 'Voluntary’ contributions made by any Corporate subscriber even if they are not associated to them.|
|5||Insertion of QR Code facility on backside of PRAN||The QR code is a matrix barcode and is used to store URL of websites. The QR code can be converted to data by using a smart phone. The application to read QR code is available as free application for all smartphone users.||Further, utility to convert website URL to QR code is also freely available online|