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The NPS is a social security scheme launched by the Central Government of India. The New Pension Scheme is a contribution based scheme that provides market-linked returns to pensioners. It was initially aimed at the Central Government employees only. However, NPS was subsequently extended by the Pension Fund Regulatory and Development Authority (PFRDA) to all citizens. So, now an employee belonging to the private sector or someone who is self-employed can avail of the new pension scheme. It also offers portability across various locations and jobs.
SBI is one of the banks where you can open an NPS account.
The following are the salient features for both Tier I and Tier II types of NPS accounts:
The most important eligibility criteria for an individual to apply for the SBI National Pension Scheme are:
(i) An individual should be between the age of 18 to 60 years.
(ii) Based on the KYC norms the following documentation is required:
(iii) In the case of Tier I type of NPS account:
(iv) In the case of Tier II type of NPS account:
(v) For an NPS Tier II account, an individual has to first open an active Tier I account for activating the Tier II account.
(vi) There is a minimum contribution of Rs. 1500 at the time of account opening for a composite account for Tier I and Tier II together.
(vii) It is mandatory to submit a cancelled cheque for a composite application or Tier II application with the application form.
You should have the following documents ready:
(i) Log on to the NPS website
(ii) Click on ‘registration’ and choose ‘Individual’
(iv) Choose a type of account – Tier I or Tier II.
(v) Enter your OTP and your personal details. If Aadhar is used, some details will be prefilled in the form. Submit to generate an acknowledgment number.
(vi) You will have to then choose from any of the several Pension Funds provided in the NPS list on the portal. In this case choose SBI Pension Fund Pvt. Limited.
(vii) You have to then choose the mode of Investment. In the case of an auto mode, the equity allocation changes with age. With active mode, you decide the mix.
(viii) Next, assign your Nominee(s) by providing the details of people who should get the corpus in the eventuality of the investor’s death.
(ix) If Aadhar Card is not used you will be required to upload a passport size image. If Aadhar has been used, then only a signature needs to be uploaded.
(x) The next step is to make a contribution to the NPS account and get a PRAN. The minimum amount is Rs 500 for Tier I and Rs 1,000 for Tier II. Pursuant to payment being approved, a PRAN would be allotted
As a final step, take a print of the completed form, paste your photo, sign it and mail the same within 90 days to the CRA office.