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New Notifications Regarding Liberalized Partial Withdrawal Norms: NPS

PFRDA or The Pension Fund Regulatory and Development Authority which administers NPS (National pension Scheme) has notified liberalized partial withdrawal norms which allows National Pension Scheme (NPS) subscribers to withdraw a maximum of 25 per cent of own contribution at any time prior to the final exit from the scheme i.e. NPS.

Cases Where a Subscriber is Allowed to make Partial Withdrawal

  • A subscriber can make a partial withdrawal from his / her NPS account if they are planning higher education for their children which includes a legally adopted child as well
  • As per the PFRDA guidelines, a partial withdrawal can be done by the subscribers in case of marrying off their children which includes a legally adopted child as well
  • If a subscriber is planning to purchase a house or constructing a residential house or flat in his or her own name or in a joint name of his or her legally wedded spouse. In case the subscriber already owns either individually or in the joint name a residential house or flat, other than ancestral property, no withdrawal under these regulations shall be permitted
  • In case a subscriber requires treatment for any specified illness, they are eligible for partial withdrawal. Hence, if a subscriber, his legally wedded spouse, children, including legally adopted child or dependent parents who suffer from any specified illness which shall compromise of hospitalization and treatment in respect of the following disease:
    • Cancer
    • Kidney failure (end stage renal failure)
    • Primary Pulmonary Arterial Hypertension
    • Major Organ Transplant
    • Coronary Artery Bypass Graft
    • Aorta Graft Surgery
    • Heart Valve Surgery
    • Stroke
    • Myocardial Infraction
    • Coma
    • Total Blindness
    • Paralysis
    • Accident of serious / life threatening nature
    • Any other critical illness of a life threatening nature as stipulated circulars, guidelines or notifications issued by the authority

Limitations of Permitted Withdrawal

PFRDA has fixed certain eligibility criteria to avail the benefit which are as follows:

  • The subscriber of NPS is required to have completed at least 3 years from the date of joining
  • The subscriber shall be permitted to withdraw accumulation not exceeding 25 % of the contributions made by him or her and standing to his or her credit in his or her individual pension account, as on the date of application of withdrawal.

How Frequently can a Subscriber Withdraw From NPS

According to the guidelines of a pension regulator, a subscriber shall be allowed to withdraw only a maximum of 3 times during the entire tenure of subscription under the NPS. And the request for withdrawal shall be submitted by the subscriber along with relevant documents to the Central record keeping agency or the NPS Trust for processing of such withdrawal claim through their nodal office. However, in case a subscriber is suffering from any of the specified illnesses, the request for withdrawal may be submitted through any family member of the subscriber.

NPS Service fees revised: however, NPS still remains a low fee product.

On October, 2017, the PFRDA (Pension Fund Regulatory and Development Authority) published an update to the POP (Points of Presence) service charges for all the citizens, and corporate NPS models. And the changes came under effect from November 1st, 2017 (with the omission of e – NPS servicing fee changes which are effective November 15, 2017).

The change in service fees will definitely have an impact on the subscribers. In NPS charges varies in different stages and this happens due to the number of stakeholders in the system. And there are fixed charges as well; some are based on transactions and others are presented as a percentage of assets under management (AUM).

Let’s look at the changes which have been made in the recent announcement:

One time account opening fee has been increased to Rs. 125 and up to a maximum of Rs. 200. However, over 15 – 20 years of contribution, which means on the long run, this difference will be very small indeed.

And also the POPs will carry on compensation of Rs. 50 per year. However, this amount is only payable in case the subscriber has made a contribution in Tier I account of more than minimum of Rs. 1,000 in a fiscal year. And the subscriber is also required to have completed more than 6 months in that financial year.

Earlier, in case a subscriber had opened an e – NPS account tagged to a POP, the servicing charges for the current transaction could be 0.05 per cent, which has now been increased by 0.1% which is subject to a minimum of Rs. 10,000, which came into effect from 15th November, 2017. And rest of the POP charges will remain the same, which are opening charges, annual maintenance cost per account and per transaction.

Apart from all the changes, NPS (National Pension Scheme) remains a low free product; however the only condition is to contribute a reasonable amount for a longer period of time in order to gain the best value out of these low charges.

How to track contributions made to Atal Pension Yojana (APY) using npscra.nsdl.co.in

Atal Pension Yojana (APY) is a Government initiative to bring the unorganized sector of Indian workforce under a pension scheme and inculcate a systematic savings habit on them. Any Indian citizen between the age of 18 and 60 years with a bank or post office savings account can invest in it.

Government of India (GOI) introduced this scheme in 2015 – 16 budgets and was operationalized from June 2015. Atal Pension Yojana is regulated by the Pension Fund Regulatory and Development Authority (PFRDA) under National Pension Scheme.

In Atal Pension Yojana, the subscribers can check the contributions they made, digitally. And there are two ways to do the same; first, by visiting the official website of NPS or by downloading the APY and NPS Lite App from the Google Play Store.

In this article we will discuss the first step i.e. by visiting the official website of NPS.

How to track contributions made to Atal Pension Yojana through npscra.nsdl.co.in

Before starting with the procedure make sure that you have your PRAN (Permanent Retirement Account Number), which is usually sent via SMS, to the registered mobile number. On the website you will have to provide your bank account number to log in.

Now follow the below mentioned steps to track your contribution on the website:

  1. Visit the official website of APY i.e. https://www.npscra.nsdl.co.in/scheme-details.php
  2. On the home page look for “APY e – PRAN / Transaction Statement View
    Atal Pension Yojana npscra.nsdl.co.in
    Atal Pension Yojana npscra.nsdl.co.in
  3. This will direct you to a new page (refer to the picture below), there click on “Click to search with PRAN” or “Click to Search without PRAN
  4. If you have PRAN, you can select with PRAN option and then you will have to provide your PRAN number for further steps along with your bank account number.
    Atal Pension Yojana - PRAN Search npscra.nsdl.co.in
    Atal Pension Yojana – PRAN Search npscra.nsdl.co.in
  5. And in case you don’t have your PRAN number, you can select without PRAN number and provide “Subscriber name, Bank A/C number, and Date of Birth (DOB)“.
    Atal Pension Yojana -Without PRAN Search npscra.nsdl.co.in
    Atal Pension Yojana -Without PRAN Search npscra.nsdl.co.in
  6. And from “Views for Subscriber” select APY e – PRAN view” from the drop down, fill the captcha code and click on submit.
    Atal Pension Yojana -Without PRAN Search npscra.nsdl.co.in
    Atal Pension Yojana -Without PRAN Search npscra.nsdl.co.in

This site will provide you with information such as pension start date, pension amount you have opted for, APY service provider etc. You can check the contribution monthly, quarterly or half – yearly basis.

How to track contributions made to Atal Pension Yojana through the App?

If you have a smart phone, you can install this app ‘APY and NPS Lite‘ app from Google Play Store.

APY and NPS Lite Google Play Store
APY and NPS Lite Google Play Store

Once installed, visit the app and provide your PRAN details in order to login

APY and NPS Lite App Login via PRAN
APY and NPS Lite App Login via PRAN

An OTP will be sent to your registered mobile number and it will be automatically picked from the SMS and click on submit.

APY and NPS Lite App
APY and NPS Lite App

The homepage will show you in which scheme your money is invested. You can also download the transaction statement using the app. Select the option to view your account details.

APY and NPS Lite App

APY and NPS Lite App
APY and NPS Lite App

APY and NPS Lite App

 

 

 

 

 

 

 

 

 

In case you don’t have a secured internet connection, an SMS will be sent to your registered mobile number to intimate the status of your contribution.

PFRDA Relaxed the NPS Entry Age Limit From 60 to 65

The Retirement pressure for an Indian citizen is about to get over because the Pension Fund Regulatory and Developing Authority has raised the entry age up to 65 years. That means, now you have an option to save your retirement savings under the National Pension Scheme even after you reach at an age of 60 years. Earlier the age limit for the National Pension Scheme was 18 years to 60 years.

The age for joining NPS has been raised to 65 years. Anyone from 18 to 65 years can join
says the PFRDA Chairman, Hemant Contractor.

While the entry age has been raised, on the other hand, the maximum age limit for the National Pension Scheme will remain unchanged. The maximum age limit of the National Pension Scheme is 70 years. The notification will be declared shortly says, Contractor. Thus, the person who chooses to join at 65 years of age can have a 5-year accumulation period under NPS.

The main reason to conclude under the decision to change the entry age for the Pension Scheme was due to the number of feedbacks screaming at the doors of PFRDA. People wanted to enjoy the benefits and showed interest to save their retirement savings as early as possible.

Another leading reason for this decision is, most of the people nowadays have stopped working when they reach 60 or they get retired when they become 60 years. So the PFRDA group thought that this could be a good idea to make a little change that can benefit the Senior citizens of the society.

The NPS Rules entitles the scheme that a subscriber can join up to 60 years and can continue to enjoy this scheme till 70 years of age and can keep on contributing. They also have an option to buy bonus and premiums that can be delayed for three years 60 to 63 years.

The NPS is slowly emerging as a strong source of investment for the senior citizens of the society. It is open to all the citizens of India to move a step and start an initiative for a better choice of investment. The investment equity of a subscriber’s fund under NPS can hike up to 70%.

The subscribers can choose Tier-I account with withdrawal restrictions otherwise can go for Tier II which is mainly a voluntary savings facility and is freely withdrawable. The Tier I come with tax benefits included whereas, Tier II has no tax saving for money invested.

The contribution amount for the Tier I at time of account opening and all the subsequent amounts is Rs 500 and minimum annual contribution is Rs 1000, whereas for Tier II Rs 1000 is the minimum amount of account opening and Rs 250 is the subsequent amounts has to be invested each time. There is no minimum contribution requirement in Tier II.

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