Under this ambitious scheme of Modi government (Government of India), after saving 60 rupees a day, you can get a pension of Rs 5,000 (pension of 60 thousand rupees annually) every month after the age of 60 years.
Pension Fund Regulator PFRDA has been approved by the Central Government for e-KYC services for subscribers of National Pension Scheme (NPS) and Atal Pension Yojana (APY). This means that now you can open your account from home. Also, the process of opening an account with online e-KYC will be easier. Let us tell you that under this ambitious scheme of Government of India, you can get a pension of Rs 5,000 every month (60 thousand rupees annual pension) after saving 60 rupees daily.
What is NPS
National Pension System and Atal Pension Yojana are the two major schemes of FPRDA. NPS is a pension scheme for the organized sector. While APY is mainly to cater to the pension needs of those working in the unorganized sector. If put in easy words, APY is the scheme launched by the government for the wage laborers.
What will benefit investors now
It has been said in the circular issued by the government that these two will now be easily connected. The new system includes OTP-based authentication, paperless on boarding, online exit tools, online enrollment for those working in the government sector.
The regulator has allowed NSDL e-governance infrastructure to act as a global Aadhaar user agency for NPS and APY. It is one of the Central Record Keeping Agency of PFRDA.
Let’s know about NPS…
National Pension System i.e. NPS is a government retirement saving scheme. It was launched by the Government of India on 1 January 2004.
This scheme is compulsory for all government employees joining after this date. After the year 2009, the scheme was also opened to the people working in the private sector.
You can also reach the point of presence https://www.npscra.nsdl.co.in/pop-sp.php through the website of the Pension Fund Regulatory and Development Authority (PFRDA). An account can also be opened in the nearest branch of any bank.
Who can apply for NPS
Indian citizens whose age is between 18 and 60 years, they can join it. To join this scheme one has to fulfill the Know Your Customer (KYC) rules. Points of presence (POPs) have been made across the country to invest in this scheme, in which NPS accounts can be opened. Almost all the government and private banks in the country have been made POPs.
What documents are required to open an account
To open an account, you need an address proof, identity proof, birth certificate or a 10th grade certificate, Subscriber Registration Form.
Let us tell you that there are two types of accounts in this Tier-1 and Tier-2.
There are two types of accounts in this scheme. Tier 1 and Tier 2. Each Subscriber is provided with a Permanent Retirement Account Number (PRAN), which has a 12-digit number. This number is used in all transactions.
Tier 1 Account: It is mandatory to open this account. Whoever is depositing the amount in this account, cannot withdraw it before retirement. When you go out of the scheme, only then you can withdraw its amount.
Tier 2 account: Any Tier 1 account holder can open this account and can deposit and withdraw money from it as per his wish. This account is not mandatory for everyone. It depends on your wish.
