From To

Indian Overseas Bank

Government Accounts Dept. All Branches / Regional Offices
Central Office /Other Offices in India
Chennai 600 002
Transient Series (File: 7 – D) Circular No. 7 of 2024-25 dated 24.05.2024

Implementation of NPS- Instant PRAN (Permanent Retirement Account Number)

generation module

Our bank is authorized by PFRDA as PoP (Point of Presence) vide Registration No:52092018,
dated 06.09.2018, to transact in pension schemes, and/or under National pension System as
per regulation 3(1) of the Pension Fund Regulatory and Development (Point of Presence)
Regulations,2018. Bank shall carry out activities in distribution and servicing for public at large
through physical as well as online platform for the pension schemes.

National Pension System (NPS) is a pension scheme sponsored by Government of India. It

offers pension after superannuation, high returns on the amount invested and additional Tax
Benefits under section 80CCD(1B). This scheme aims at retirement planning.

Presently we have empaneled M/s Protean e-Gov Technologies Ltd. (Formerly known as
NSDL e-Governance) as our Central Record Keeping Agency (CRA). CRA is the core
infrastructure for the National Pension System and is critical for its successful
operationalization.

Point of Presence act as service providers to customers to open and operate NPS account.
PoPs are entitled to provide all services under NPS through POP-SPs/Branches. Our Bank is
authorized PoP and all our branches are authorized PoP- SP (Service providers)

Existing process flow

Presently, our bank is following physical mode for opening of NPS accounts. Branches are
collecting application from customers and submitting to Central Office for processing of
PRAN. The applications are scrutinized at CO and sent to Protean for PRAN allotment. The
following gaps are observed in the present process flow

• Delay in sending the application to Central office

• Using old version of application form
• Signature not obtained in all mandatory fields
• Incomplete applications

Due to the above discrepancies, there may be delay in generation of PRAN

In order to avoid time delay between submission of application and PRAN allotment, we are
migrating to new platform for branches to generate PRAN instantly.

Regional Offices and branches are advised to utilise the opportunity of generating NPS PRAN
instantly for our esteemed customers.

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NPS- Instant PRAN Generation
NPS- Instant PRAN Generation will facilitate allotment of NPS PRAN to customers instantly,
without any delay. The platform is enabled for all the branches to process the NPS
applications received at branches for PRAN allotment. Following are the features of the new
platform:

• Branches should accept filled applications along with required documents.

• NPS shall be allotted for All Citizen Model only. PRAN allotment for NRI and Corporate
application is offline.
• Branches need not forward NPS applications to CO. However, it has to be preserved
as a permanent record with the branch for verification during audit/inspection.
• PRAN allotment can be done for our Bank customers only.
• 2 steps for PRAN allotment at branches-GBM & IOB Online.
• Maker and checker mechanism is inbuilt in both GBM and online process.
• PRAN can be allotted to customers in minutes after completion of checker process.
• PRAN will be activated when PRAN is mapped in GBM on T+1 days and initial
contribution is remitted in the respective PRAN account.
• Standing instruction facility is enabled for customers to contribute to NPS conveniently.
• PRAN generated data will be available for branches and Regional offices.
• Other service requests shall be in offline mode.

Note: myNPS portal is available for customers for generating PRAN instantly. Link is
available in IOB Internet banking/mobile banking/QR code.

Operational Guidelines
Standard Operating Procedure

Branches
All branches in our bank are authorized to enroll NPS for our customers. When a customer
approaches branch for enrolment under National Pension System (NPS), branches are
advised to adhere to the following guidelines:

I: Opening of NPS account :

I.1: Application form

• Application form to be obtained in the latest Version from the applicant. Latest
version of application is as notified by PFRDA guidelines which varies from time

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 to time and will be notified by Central office. Current version of application to
be obtained is Version 2.1.

I.2: Compliance of KYC Guidelines :

All the applications should be scrutinized to ensure that KYC Guidelines are
complied with. Branches to be guided by Circular no: Misc/152/2023 dated
27.11.2023

• Branches to ensure that application form is duly filled i.e., photograph,

signature, mandatory details, scheme preference etc. and verify KYC
documentation with respect to proof of identity and proof of address.
• One Recent photograph, PAN card, Address proof and Bank proof should be
collected along with the application form. Branch official to verify the
documents submitted and attest the documents.
• PAN Card is mandatory for enrollment under NPS.
• Documents to be collected as Address Proof is listed below:
➢ Aadhar Card
➢ Voter’s ID
➢ Driving license
➢ Passport
➢ Utility bills (Electricity bill, Telephone bill, Water bill not more than 3
months)
• Proof of Bank account shall be bank statement, bank passbook front page or
cancelled personalized cheque leaf.
• Place of Birth of applicant is outside, branch should obtain Proof of Birth.
• Branches shall refer the checklist to verify the mandatory columns.

I.3: Preservation of documents: Applications collected from customers along with KYC
Documents shall be preserved at branches. The documents should be made
available for verification during internal audit/inspection of PFRDA audit.

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II : Process flow of NPS Instant PRAN generation

NPS Registration in GBM(branch level)

PRAN allotment(branch level)

IOB Online-->Branch Products--> Instant PRAN generation(NPS)

Upload of PRAN in GBM by Central Office on T+1 days.

PRAN will be active when initial contribution is reflecting under
PRAN.

III : Fund movement in NPS Instant PRAN generation

Day Debit Credit

Verification of GBM Master by Checker(T)

Step 1 Customer’s SB account Instant-NPS Registration Account

(Day 1=T) XXXX014323005

Uploading of PRAN on T+1 days

Step 2 Instant-NPS Registration 1. Contribution Account-NPS

Account XXXX0114323002
(Day 2=T+ 1)
XXXX014323005 2. NPS Commission
XXXX0182170003

3. GST payable on NPS

XXXX0114328001
Step 3 Subscriber contribution file is uploaded in CRA portal, funds will be
moved to pooling account for onward remittance to NPS TRUST
(Day 2=T+ 1)
account. (T+1 Days)

Step 4 Contribution Account-NPS Pooling Account at Central Office

XXXX0114323002 01090113301020

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 Step 4 Pooling Account at Central NEFT in favour of NPS TRUST
Office ACCOUNT
(Day 2=T+ 1)
01090113301020

4. Other Service Requests:

Apart from PRAN allotment, our bank is providing the following other services to

subscribers:

➢ Processing of withdrawal request- Subscribers have the option to submit their

withdrawal request through online or offline mode. Branches should forward
applications received from subscribers for withdrawal along with KYC
documents, bank proof and PRAN Card in original to Government Accounts
Dept for processing of withdrawal in CRA portal. Branches should forward the
requests to Central office on the same day to ensure that it reaches CO on T+1
days (T- Date of receipt of withdrawal request at Branch).

➢ Modification or any change in NPS PRAN- Subscribers have the option to

submit their request for modification through online and offline mode.
Branches should forward applications received from subscribers along with the
required documents to Government Accounts Dept for processing of
modification request in CRA portal. Branches should forward the requests to
Central office on the same day to ensure that it reaches CO on T+1 days ( T-
Date of receipt of modification request at Branch).

➢ Shifting of PoP- Subscribers have the option to submit their request for shifting
of POP through online and offline mode. Once branches receive request for
shifting, branches should enter in GBM under shifting of PoP and forward
applications by mentioning the receipt no, along with the required documents
to Government Accounts Dept for processing of request for shifting of POP in
CRA portal. Branches should forward the requests to Central office on the
same day to ensure that it reaches CO on T+1 days ( T- Date of receipt of
request for shifting of PoP at Branch).

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5. Service Charges:

For all services provided to NPS subscribers, bank is entitled for service charges,

as notified by PFRDA. Structure of service charges is furnished in the table.

Service Charges (excluding GST) Method of Deduction

Subscriber Rs.350/- Will be collected upfront

Registration by system
Initial Contribution 0.50% of the contribution Will be collected upfront
subject to Min Rs.30/- and by system
Max.Rs.25,000/-
All Subsequent 0.50% of the contribution Will be collected upfront
Contribution subject to Min Rs.30/- and by system
Max.Rs.25,000/-
All non-financial Rs.30/- Will be collected upfront
transactions by system
Persistency Rs.50/- p.a for annual Through cancellation of
charges contribution Rs.1000/- to units
Rs.2999/-
Rs.75/-p.a for annual
contribution Rs.3000/- to
Rs.6000/-
Rs.100/- p.a for annual
contribution above Rs.6000/-
e-NPS charges 0.20% of contribution, subject To be collected upfront
to min.Rs.15/- and max
Rs.10000/-

Processing of Exit @ 0.125% of corpus with Min Will be debited from

/ Withdrawal Rs.125/- and Max. Rs.500/- customers account at the
time of processing the
exit/ withdrawal request
at CO.

For service charges related to NPS, refer circular no:18 of 2022-23 dated 18/06/2022.

Any change in service charges will be notified separately as and when revised by PFRDA.

6. Compensation to customers:

PFRDA vide circular no. PFRDA/2023/21/SUP-POP/04 dated 30.06.2023 has issued

guidelines to be followed by Point of Presence (PoP) performing activities of NPS. POP
shall follow the ‘Service standards’ for all activities under NPS along with Turn Around
Time (TAT) for various activities. Branches to display the same at notice boards.
Branches should ensure that all services are adhered within Turn Around Time.

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Types of Activities Turn Around Time Compensation payable to
subscribers in case of
default

Subscriber Registration Maximum T+1 day, where T For each delayed transaction,
is the date of receipt of Bank should pay
complete subscriber
registration form at Repo rate + 2% p.a. of initial
contribution amount for the
branches
period of delay or Rs.20/-
whichever is higher.

Contribution Processing

• Collection of Maximum T+1 day, where T For each delayed transaction,

contribution is the date of contribution Bank should pay
o (Initial &
Subsequent made by the subscriber
Repo rate + 2% p.a. of initial
Contribution)
• Processing of contribution amount for the
contribution period of delay or Rs.20/-
whichever is higher.

Processing of service Online request- Maximum For each delayed transaction

requests T+1 days, where T is the including delay due to
date of receipt of such wrong/incorrect processing,
request at branches along Bank should pay
with complete set of
Rs.10/- per day subject to a
supporting documents.
maximum of Rs.100/-.
Offline requests- Maximum
T+7 days, where T is the
date of receipt of such
request at branches along
with complete set of
supporting documents.

Processing of exit and Online request- Maximum For each delayed transaction
withdrawal requests T+1 days, where T is the including delay due to
date of receipt of such wrong/incorrect processing,
request at branches along Bank should pay
with complete set of
Repo rate + 2% p.a. of the
supporting documents.
transacted amount for the

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 Offline request- Maximum period of delay or Rs.20/-
T+ 30 days, where T is the whichever is higher.
date of authorization of
exit/withdrawal request in In case of loss to subscriber is
more than the compensation
CRA system.
applicable, then bank shall
make good the loss.

Do’s & Don’ts

Sl DO’S DONT’S
no.
1 NPS shall be enrolled through Enrolment of NPS for NRI and corporate is not
Instant PRAN generation module available in Instant PRAN generation module in
for All Citizen Model- Residents. the first phase. Enrolment is to be done through
offline mode.
2 Customer registration form to be Non-customers are not allowed for registering NPS
obtained in the latest Version as with IOB.
notified by the regulator
3 PAN Card, Address proof and Old version format (Version 1.1,1.5,1.6) should not
Bank proof to be obtained from be obtained from customers. Old photograph of
customers. customer should not be accepted.
Recent photograph must be Address furnished in the application form and
pasted in the application form. proof of address cannot be different.
4 All mandatory columns to be Incomplete applications should not be processed
filled. Customer signature is for PRAN generation.
mandatory for FATCA
declaration
5 Mobile no, Email id, Bank Other bank proof is not accepted.
Account should be unique for
each applicant.
6 Available mode of transaction is Cash/Clearing mode of transaction is disabled in
TRANSFER only GBM

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Regional Offices:

1. ROs shall monitor branches with regard to preservation of customer subscriber

registration form as instructed by Central Office. Random checks to be carried
out during short inspection.
2. Regional offices shall conduct training sessions for branches to create
awareness among branch staff on NPS.
3. Creatives and pamphlets to be shared to branches during NPS campaign and
ensure activation of all branches.
4. Monitoring of GL head for reconciliation and timely elimination of entries.

ITD:

1. All technical support under NPS to be provided by the GBM team.

Monitoring of daily fund movements from GL Heads during EOD and
inform to Govt accounts dept for following up with branches.
2. Coordinating with user dept for uploading PRAN list in GBM ensuring
compliance of stipulated TAT.
3. Complaints resolution through Manage engine/mails
4. Technical support:
• GBM related queries: [email protected]
• Instant PRAN related queries: [email protected]

Central Office:

1. Contribution collected from customers across branches are credited to

Pooling Account:01090113301020 at Central Office during GBM EOD. Funds
collected will be reported to PFRDA through portal provided by CRA, Protean
Technologies Ltd. daily and funds are remitted to NPS TRUST Account on T+1
days.
2. PRAN upload in GBM on T+1 days.
3. Monitoring of fund flow in the office account related to NPS.
4. Processing of Customer registration form of NRI and Corporate for PRAN
allotment.
5. Processing of withdrawal requests.
6. Processing of any change/modification request in NPS PRAN.
7. Processing of shifting of POP

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 8. Submission of reports to PFRDA as per guidelines issued on 30.06.2023.
9. KYC verification of myNPS /e-NPS subscribers.
10. Grievance handling in NSDL portal.
11. Conducting training sessions for ROs/Branches by coordinating with PFRDA
and Protean Technologies Ltd.
12. Branches and Regional Office may mail to [email protected] for Product & service-
related queries.

Conclusion:
Branches/ROs are advised to follow the operational guidelines scrupulously while
handling the transactions pertaining to NPS and adhere to the stipulated timelines.
NPS can be offered as a value-added service to our customers and increase our fee
based income.

DHURGA DEVI Digitally signed by DHURGA

DEVI M

M Date: 2024.05.24 18:25:12

+05'30'
(Dhurga Devi M)
Deputy General Manager/HOD

Annexures:

1. Annexure I-User Manual

2. Annexure II- Checklist for NPS application
3. Annexure III- Frequently Asked Questions

Reference Circulars:
1. Operational guidelines circular issued by PFRDA-Circular no: PFRDA/2023/21/SUP-
POP/04 dated 30.06.2023.
2. Service charges circular issued by Govt Accounts Dept-Circular no: 18 of 2022-23 dated
18/06/2022.
3. Guidelines on KYC/Anti-Money Laundering/Combating the financing of terrorism
(KYC/AML/CFT) vide circular no: PFRDA/2023/05/REG-POP/02 dated 23.01.2023
4. NPS in KYC/AML policy vide Circular no: Misc/152/2023 dated 27.11.2023

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Annexure I

USER MANUAL FOR NPS-INSTANT PRAN GENERATION

Steps to be followed by branch

Step 1 Utilize De-duplication tab to check whether the applicant details are already
present in CRA system.

IOB Online→Branch Products→Instant PRAN generation (NPS)

Step 2 Complete registration (Entry and verification) in GBM and 17- digit registration
Receipt number will be generated.

GBM→NPS→ Transactions→Subscriber Registration ADD

Step 3 NPS Instant PRAN generation

IOB Online→Branch Products→Instant PRAN generation (NPS)

3.1 Fill each section in Entry tab (Saving each section is mandatory to retain inputs)

Authorize the Entry in Approve tab (No modification in the application is not
allowed after approval)
3.2 Post the Entry to CRA System in PRAN Generation tab.

3.3 On successful posting, generate PRAN from CRA System in PRAN Generation tab

3.4 View the generated PRAN in Check Generated PRAN option in PRAN
Generation tab.

Step 1: De-Duplication option

Branches can utilize the de-duplication option for verifying whether the applicant
data is already present in CRA System before processing the application. We advise
branches to use this option before processing the application in GBM.

Under DE-DUPLICATION option, branches are given the option to check PAN, mobile
no, email id, bank account no. and IFSC code of the applicant. For registration of NPS,
all the above mentioned should be unique. The link is available in IOB Online.

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IOB Online→ Branch Products→ Instant NPS PRAN

Branch user shall enter SOL ID, Roll no & Password (CHRIS password) and Click
on SUBMIT.

HOME PAGE appears as shown below:

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Step 2: Registration of NPS in GBM
2.1 Entry in GBM

Branches to enter customer details in GBM

NPS →Transactions→ Subscriber Registration→ADD

Customer details to be filled as shown in the screenshots below:

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On successful entry of NPS registration, the below screen appears:

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2.2. Verification required for the NPS entry in GBM

NPS→Transactions→ Subscriber registrations→VERIFY

Select the entry to be verified from TORCH icon in CUST ID column.

Click on submit, customer details will be displayed as shown in the below screen:

On verification of NPS registration entry, 17-digit registration receipt number

(11668902300000003) is generated as shown in below screen:

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Receipt no. generated in GBM will be available under NPS Instant generation
module in IOB Online for PRAN allotment.

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Step 3: NPS-Instant PRAN generation module
IOB Online→ Branch Products→ Instant NPS PRAN

Branches shall proceed for PRAN allotment in NPS -Instant PRAN generation
module.

3.1. ENTRY- Branch user shall fill details of applicant

Click on Entry→ADD→Receipt no.(11668902300000003) will be available from drop

down list.

The following sections listed in the below screenshot should be filled.

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Most of the fields in the module will be auto filled. The customer details will be fetched
from GBM and Finacle. Branch users to enter the mandatory columns which are blank.
After filling each section, branches should CLICK on Save and continue to click on
SUBMIT after entering all TABS.(Save each section to retain changes)

STEPS TO RESIZE SIGNATURE AND PHOTOGRAPH FOR UPLOADING IN PORTAL

➢ Resize the image using Paint Application (Keyboard Shortcut - Ctrl+W):

• Click on the image to open the "Image" tab on the ribbon.

• Select "Resize and Skew" from the "Image" tab.
• This will open a window with options to resize by percentage or pixels.
• Select percentage and give correct percentage to increase / decrease the
size of the image.
• Click "OK" to apply the resize.
• Check the size of Image after saving the image with .jpeg extension.

CLICK on SUBMIT, the following screenshot will be appear below:

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3.2. APPROVE-Branch user 2 shall approve the entry

Checker to visit all tabs and cross check all details of applicant entered matches with
the details available in NPS application form submitted by applicant. Once the
application is approved, no further modification is allowed .

Click on Approve Entry, the below screen is displayed

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3.3.Click on PRAN Generation-→Select Post pension Details-→SUBMIT

After submitting, the below screen appears. Once the status is success and response
id is generated, branch can proceed with next step.

3.4.Select Generate PRAN from drop-down list.

Receipt no, Name of customer and Date of Birth will be displayed.

Click SUBMIT.

PRAN allotted will be displayed in the screen.

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Any discrepancies during entry will be displayed at time of PRAN generation, as shown
in the below screen. In Such instances, Checker should revert the application and
Maker should revisit entry menu and select ACTION: Modify Unapproved/Reverted
and update the particulars required as mentioned in the error. After modification,
maker should save the details entered. Checker should approve the modified entry
and follow the process flow for PRAN allotment.

PRAN allotted can be viewed by branches in POST PENSION DETAILS→CHECK

GENERATED PRAN.

Under VIEW option, branches can view the status for each registration receipt no.

Reports:

Regional Offices are given the utility to view PRAN generated in IOB Online→
RO Products→ Instant PRAN generation (NPS).

Date wise/Branch wise/Region wise data of PRAN allotted can be generated by RO.
Option is provided for downloading the report in excel.

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***User Manual is available in IOB Online-→CO Depts-→Govt. Accounts Dept-→NPS-
→Process Flow

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Annexure II

Checklist for NPS application

Branches are requested to obtain duly filled subscriber registration form from
applicants

1. NPS Application should be in Version 2.1 format. Version is as notified by PFRDA.

The format is available in IOB Online- CO Depts- Govt Accounts- NPS.

2. NRI/ Corporate Registration continue in the offline mode.

3. Branches to ensure that the subscriber registration form received from

customer in the latest version. Any application other than latest Version should
not be collected by branches.

4. All mandatory columns to be filled.

5. KYC documents to be verified and attested by branch officials.

6. Proof of Bank Account- (Passbook front page/ Cancelled cheque leaf) to be

attached along with application form. If subscriber is opting for both Tier I & Tier
II, cancelled leaf is mandatory.

7. Branches should enclose checklist along with the application form to ensure all
required documents have been collected from the customers for opening of
NPS accounts and preserved along with application form.

CHECKLIST FOR NPS PRAN ALLOTMENT

Sl. No Particulars Yes No

1 Application obtained in the latest Version?

Latest version of application is available in

IOB Online→CO Depts→Govt. Accounts Dept-→NPS-→Subscriber
Registration Form
2 Recent passport size photograph affixed in the application?
3 Self-attested copy PAN Card submitted?
4 Self-attested copy Proof of Address (Aadhar Card/Driving
Licence/Voter’s ID/Passport/Utility bills) submitted?
5 Proof of Bank Account (Bank Passbook front page/Cancelled
cheque/bank statement) attested by branch official available?
7 Proof of identity, address, bank verified with original by bank
officials?
6 Below listed Mandatory Columns duly filled?
PRAN Card & Kit
Personal Details
Salutation
Applicant Name

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 Father's Name OR Mother's Name
Date of Birth
Place of Birth
Nationality
Gender
Marital Status
Spouse Name, if married
PAN
Income Range
Occupational details
2 Proof of identity and Address
3 Address Details (as per proof submitted)
4 Contact Details
Contact-Mobile no. & Email id
5 Bank details
6 Nomination details
Nominee name, Relationship, Age/DOB. More than one nominee,
Annexure to be enclosed. Up to 3 nominees permitted
7 Selection of Pension Fund & Investment Choice
8 Activate my Tier II
Tick, if Tier II is opted by applicant
9 FATCA & CRS declaration
Applicant Signature is mandatory
10 Declaration by applicant
Applicant Signature is mandatory
11 Declaration by employer (in case of corporate applicant)
To be filled by POP-SP
Branches to enter 17-digit receipt no. when registering master in
12 GBM
POP registration Number:5000516
POP-SP registration Number: Branch registration no. in PFRDA
Signature and Rubber stamp of branch.

** Checklist is available in IOB Online→CO Depts→Govt Accounts Dept

→NPS→Checklist for NPS PRAN allotment

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Annexure III

Frequently Asked Questions – NPS-All Citizen Model

I. Pre-subscription phase

1. What is National Pension System?

National Pension System (NPS) is a defined contribution pension. NPS is

voluntary for subscription by an individual to make contributions to his/her
Individual Pension Account during the working life for creating a pension
corpus from which regular income will be generated after retirement /
working age.

NPS is mandatory for the Central Government recruits w.e.f. 1st Jan
2004 (except armed forces) which replaced the earlier defined benefit
pension and has been subsequently adopted by almost all State
Governments for their employees.

2. What are the features of NPS?

o Regulated - NPS is regulated by PFRDA, which is established

through an Act of Parliament. (PFRDA Act 2013)

o Pension for All - can be voluntarily subscribed by any Indian

Citizen (resident/non- resident/overseas citizen).

o Low Cost – NPS is one of the lowest cost pension schemes in the world.

o Flexible - Subscribers have choices of Point of Presence (PoP),

Central Recordkeeping Agency (CRA), Pension Fund and Asset
Allocation. The choices exercised can be changed subsequently.

o Portable – NPS account can be transferred across employment,

location/geography.

o Tax efficient – Tax incentives are available to subscribers under the Income
Tax Act 1961.

o Optimum returns – Market linked returns based on investment choice

made by the subscriber.

o Transparent – Subscribers can access their NPS accounts online 24X7

and public disclosures mandated.

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3. Who all are eligible to join NPS?

o Any Indian Citizen (resident or non-resident) and Overseas Citizen of

India (OCI)
o Aged between 18-70 years
o Compliant to Know Your Customer (KYC) norms.

Hindu Undivided Families (HUFs) and Persons of Indian Origin (PIOs) are not
eligible for subscribing to NPS.

NPS is an Individual Pension Account and cannot be opened on behalf of

a third person. The applicant should be legally competent to execute a
contract as per the Indian Contract Act.
• I have subscribed to EPF / PPF / Superannuation Fund / Provident Fund. Am
I eligible to join NPS?

Yes. NPS can be voluntarily subscribed along with any other pension
scheme(s). However, an individual cannot have multiple NPS accounts.

4. How much pension will I receive in NPS?

The amount of pension will depend on the amount of contributions made,

accrual/returns on the investments and the portion of corpus utilised by the
subscriber for purchasing annuity plan from any of the Annuity Service
Providers empaneled with PFRDA.

Under NPS, there is no implicit or explicit assurance of benefit and the

investments are subject to market conditions.

5. What is All Citizen Sector? NPS caters to which all Sectors?

NPS caters to the Central Government (CG) Sector, State Government

(SG) Sector, Corporate Sector and All Citizen Sector.

Individuals subscribing to NPS voluntarily are classified / categorized under

All Citizen Sector.

6. What is the structure of NPS? Why there are different intermediaries in

NPS?

NPS has a unique unbundled architecture wherein each intermediary

(PoP, Pension Fund, Central Recordkeeping Agency, Trustee Bank,
Annuity Service Provider, Retirement Advisors, Custodian, NPS Trust) is
assigned a specialized activity by the Regulator. This ensures economies
of scale and operational/intermediation costs at bare minimum to
subscribers.

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 This unique structure safeguards subscribers’ interest as the role of a particular
intermediary is limited to the functions assigned to it and no single
intermediary/entity has complete control over NPS as a System.

7. What are the charges under NPS?

Each intermediary is entitled to recover the following prescribed charges
from the subscriber towards the services rendered by them:

Method of
Intermediary Charge head Service Charges*
Deduction

Rs.350/-
Subscriber registration

To be
Point of Initial Contribution 0.5% of contribution amount
Presence Minimum ₹30/- Maximum collected
Subsequent transactions upfront
₹25000/- (negotiable within
slab only)

Non-Financial transactions ₹30

Contribution through: 0.20% of contribution,
a. eNPS platform of NPS Trust Min. ₹15 Max. ₹10000
b. D-Remit (for NPS All Citizen and Tier-II
accounts)
Processing of withdrawal / 0.125% of corpus
exit Minimum ₹125 Maximum ₹500

₹50 per annum for annual

contribution
₹1000 to ₹2999
₹75 per annum for annual
Persistency Charges contribution
₹3000 to ₹6000
₹100 per annum for annual
contribution
above ₹6000 Through
(only for NPS All Citizen) cancellation
of units
NSDL Karvy
Account Opening
charges (One-Time) * ₹40 ₹39.36
Central
Account Maintenance
Recordkeeping ₹69 ₹57.63
Agency Charges (Per Annum)

Charge per transaction

₹3.75 ₹3.36
(Financial /Non-Financial)

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Pension Fund Investment Management 0.0467% - 0.09%
Fee Adjustment
NPS Trust Reimbursement of 0.005 % p.a. of Assets Managed in NAV of
Expenses Scheme
Custodian Asset Servicing charges 0.000000001770% p.a. of assets in
custody

* In case a subscriber opts not to have a physical PRAN Card or Welcome Kit,
reduced account opening charges of CRA are applicable as under:

Account Account opening with ePRAN card

CRA opening with Welcome kit sent in Welcome kit sent
Physical hardcopy vide email
PRAN card only
NSDL eGov ₹40.00 ₹35.00 ₹18.00

Tier-II transaction charges are same as Tier-I.

8. How can I open an NPS account?

An NPS account can be opened through

o Points of Presence (PoP) registered with PFRDA in
Online or Physical mode -
https://www.pfrda.org.in/index1.cshtml?lsid=205

Point of Presence (PoPs) is the distribution channel and the first point of
contact for applicants and subscribers. PoPs are mandated to provide
services related to Subscriber Registration (Collection of forms and KYC
verification), receiving /uploading contributions, processing subscriber
requests for updation of account details, exercising choices, withdrawals,
grievances resolution etc.

o Online platform (eNPS) of NPS Trust

http://www.npstrust.org.in/content/open-your-nps- account-online

II. Subscription and Accumulation Phase

10. What are the types of accounts in NPS?

Under NPS account there are two types of accounts – Tier I & Tier II.

Tier-I is the Individual Pension Account, which is the default pension account
having all the tax incentives under Income Tax Act.

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 Tier-II is an optional investment account available to a subscriber having an active
Tier-I account. This account has no withdrawal restrictions and tax benefits. Tier-II is
not a Pension Account.

11. What are the features of Tier-I and Tier-II accounts?

Tier – I Tier – II

Individual Pension Account Optional Account – Require an active

Tier-I
Withdrawal as per rules/regulations only Unrestricted withdrawals
Min. Contribution ₹1000 Min. Contribution to open ₹1000

Min. Contribution per year ₹1000 Min. Contribution ₹250

Tax benefits are available No tax benefits on contribution/gains

Any Citizen aged between 18-70 is eligible NRIs/OCIs are not eligible
Choose any Pension Fund / Investment Choose any Pension Fund/ Investment
Pattern Pattern *
*Subscriber can select different Pension Fund and Investment Option for his/her
NPS Tier I and Tier II accounts

12. What documents are required to open an NPS account?

The applicant has to submit duly filled Subscriber Registration Form

(CSRF/NRSF/Online data fields) along with the following documents to the Service
Provider (PoP)/Online:

For resident Individuals:

a) One Recent Photograph

b) PAN Card
c) Proof of Address
d) Bank

Proof

For NRIs and

OCIs

Non-resident Individual (NRI) Overseas Citizen of India (OCI)

One Recent Photograph One Recent Photograph
PAN Card PAN Card

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Indian Passport OCI Card
Proof of address - India Proof of address - foreign country
Proof for the Bank Account (NRE/NRO) Proof for the Bank Account (NRE/NRO)
Refer instructions in the subscriber registration form, for the list of acceptable proofs.

13. What are the choices I need to exercise while opening an NPS
account?

The following choices are to be exercised by the applicant:

Choice Function Refer

Point of Presence Service Provider https://www.pfrda.org.in/index1.csht
ml?lsid=181
CRA Record-keeper https://www.pfrda.org.in/index1.csht
ml?lsid=165
Pension Fund Fund Manager https://www.pfrda.org.in/index1.csht
ml?lsid=182
Investment Choice - Asset allocation pattern
a. Active Choice
i. Equity (E) – Maximum 75%
ii. Corporate Bonds (C) – Upto 100%
iii. Government Securities (G) - Upto 100%
iv. Alternate Assets (A) – Maximum 5% https://www.pfrda.org.in/index1.csht
b. Auto Choice ml?lsid=97
i. Conservative Life Cycle Fund (LC25)
ii. Moderate Life Cycle Fund (LC50) -
Default
iii. Aggressive Life Cycle Fund (LC75)

14. How often can I change the choices I have made?

Subscribers can subsequently request to change the choices exercised as under:

Choice Frequency Mode / method

Point of Presence No restrictions, any time Physical Application to target/new PoP

CRA Twice in a year Physical Application to target/new CRA

i. Online – Login to your account or
Pension Fund Once in a Financial
Year ii. Offline - Physical Application to PoP
Four times in a Financial i. Online – Login to your account or
Investment Choice
Year ii. Offline - Physical Application to PoP

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 15.How do I know the status of my NPS application? When and where will I
receive the account opening kit?

On submission of duly filled application to service provider (PoP)/Online,

Applicant will receive an Acknowledgement Number and the applicant can
track the status of application online using the same.

Subscriber will receive the Account Opening Kit (if opted for) containing the PRAN
Card and the passwords for accessing the account within a fortnight from the date
of receipt of application, at his/her correspondence address provided in the
application form.
16. What is a Permanent Retirement Account Number (PRAN)?

PRAN is a unique identification number allotted to a subscriber for his/her

Individual Pension Account opened under NPS. The PRAN remains unchanged even
though the subscriber shifts employment / sector/location.

17. How do I access my NPS account?

Subscriber can access their Pension Account through

i. Physical mode – by visiting his/her service provider (PoP)

ii. Online - using login credentials provided by CRA in the Account
Opening Kit
a. Web-based login
b. Mobile Application

Telephone - using the T-Pin received in the Account Opening Kit. Toll Free
numbers - NSDL 1800 222 080

18. Where and how can I make contributions to my NPS account? How will my
contributions get invested?

A subscriber can make any number of contributions without any upper limit of
amount through any of the following modes:

i. Physical mode – by visiting any of the registered service provider

(PoP) and depositing cheque/cash along with the NPS contribution
slip.
ii. Online mode -
a. Web-based [ (i) login to your Pension Account (ii) online facility
provided by PoPs (iii) eNPS platform of NPS Trust]
b. NPS Mobile Application login
c. myNPS portal

The contributions made by the subscriber will get invested as per the choices

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(Pension Fund and Asset allocation) exercised and recorded with CRA.

19. When and how will my contributions reflect in my NPS account?

It normally takes three working days for the contributions to get reflected

in your NPS account. The process flow entails:

● Receipt/realization of contribution in service provider’s (PoP) bank account

● Upload of details by service provider (PoP) to CRA and fund remittance to
Trustee Bank
● Transfer of the funds by Trustee Bank to Pension Fund based on CRA
instructions
● Investment of the funds by Pension Fund and declaration of scheme NAV
● Allocation of units by CRA for the contributed amount
● Reflection of corresponding units in the subscriber’s NPS account

Subscribers will receive SMS & Email confirmations for credit of units in account.
CRA is mandated to send a physical copy of the Statement of Transaction (SoT)
of your Pension Account to the correspondence address as recorded with CRA,
once in a year. SOT is also emailed to the registered email address of the subscriber
on a periodic basis which can also be accessed online by login into your account.

20. How are contributions invested by Pension Funds?

The contributions are invested by Pension Funds according to the investment

guidelines prescribed by PFRDA for each asset class.

Asset class E – Equity shares of companies traded in Futures and

Options segment Asset Class C – Corporate Bonds / Debentures

which are listed and rated not below A Asset Class G –

Government securities and State Development Loans

Asset Class A – Alternate Assets

For detailed investment guidelines refer to the Circulars Section of PFRDA website.

21. What happens if I don’t make the minimum contribution? Will my

account be closed?

If minimum contribution is not received, the account is categorized as ‘frozen’ and

will get activated upon making a contribution to the account. The NPS account will

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be closed only when a subscriber submits a request (physical or online) for exit
from NPS to a service provider (PoP).

22. How can I change my NPS account details?

For changing the account details as recorded with CRA, subscriber has to submit a
request to the Service Provider (PoP):-

Parameter of Mode / method to change Remark

Change
Name Physical Application – Form S2 Proof to be submitted

Address Physical Application – Form S2 Proof to be submitted

i. Online – Login to your account or
Contact Details -
ii. Offline - Physical Application – Form
S2
Nomination Physical Application – Form S2 -

Bank Details Physical Application – Form S2 Proof to be submitted

Sector / Physical Application – Form ISS -
Occupation

23. How do I know about the performance of my NPS investments?

The performance of your NPS investments is available in the Statement of

Transactions which can be accessed online through the subscriber web login or
mobile app. Periodic statements are sent by the CRA
to the registered email-id of the subscriber and a physical statement for the
financial year is sent to the correspondence address of the subscriber.

24. How do I evaluate my NPS investments?

The returns generated by the Pension Funds for each Asset Class is published on a
weekly basis by NPS Trust and available at the following web link
http://npstrust.org.in/return-of-nps-scheme

The portfolio of Asset Classes managed by each Pension Fund is periodically

published by the Pension Funds on their websites.
http://npstrust.org.in/content/scheme-portfolio

III. Retirement / Exit / Withdrawals

25. When can I withdraw my money from NPS Account?

A subscriber can withdraw from NPS in the following circumstances/conditions:

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 i) Partial Withdrawal - after completion of 3 years subscriber can withdraw 25% of
his/her own contributions for specific reasons viz illness, disability, education or
marriage of children, purchasing property, starting a new venture. A subscriber
can partially withdraw upto a maximum of 3 times during his/her entire tenure in
NPS.

ii) Premature Withdrawal - after completion of 5 years or before completion

of 03 years (if subscriber joined NPS after attaining 60 years of age), subscriber
can withdraw maximum 20% of the corpus as lumpsum and minimum 80% of
the corpus has to be utilized for purchasing an annuity plan for receiving the
pension. If the accumulated corpus is less than ₹2.5 lakh, the entire corpus is
paid as lumpsum to the subscriber.

iii) Normal Withdrawal – on completion of 60 years of age (if subscriber has

joined NPS before 60 years of age) or after completion of 03 years (if subscriber
has joined NPS after 60 years of age), subscriber can withdraw maximum 60%
of the corpus as lumpsum and minimum 40% of the corpus has to be utilized
for purchasing an annuity plan for receiving the pension. If the accumulated
corpus is less than ₹5 lakhs, the entire corpus is paid as lumpsum to the
subscriber. Now, subscribers are given the option of phased withdrawal of lump
sum through Systematic Lump sum Withdrawal (SLW) facility. The subscribers are
allowed to withdraw upto 60% of their pension corpus, through SLW on a
periodical basis viz. monthly, quarterly, half-yearly or annually for a period till 75
years of age as per the choice at the time of their normal exit.

Subscriber also has the option to:-

(i) Continue in NPS till the age of 75 years or exit anytime after such continuance
before 75 years.
(ii) While exiting from NPS, subscriber can;
▪ defer receiving the lumpsum (60% corpus) till the age of 75 years or
withdraw the same in installments till 75 years
▪ defer Annuity purchase (40% corpus) till the age of 75 years.

In case of unfortunate event of death of a subscriber, the nominee/legal heir

can withdraw the entire accumulated corpus. The nominee / family members
of the deceased subscriber can also purchase annuity, if they so desire.

26. What if I don’t want to exit from NPS at 60 years of age?

If an NPS All Citizen subscriber does not exit from NPS at 60 years of age, the
account will automatically be continued up to 75 years of age. Subscriber can
exercise the option of normal exit from NPS at any point of time he/she wishes after
60 years of age. At the age of 75 years, the account has to be closed mandatorily.

Page | 35
 27. What are the specific reasons or conditions for partial withdrawals?

Partial withdrawals from your NPS account are allowed for dealing with
contingency situations and following are the reasons/conditions for which
partial withdrawal is allowed:

o Higher education of his/her children

o Marriage of his/her children
o Purchase or construction of residential house or flat
o Treatment of specified illnesses
o Disability of more than 75%
o Skill development/re-skilling or any other self-development activities
o Establishment of own venture or any start-ups

28. How to request withdrawals from NPS Account?

Requests for withdrawals from NPS can be initiated by the subscriber by login to
his/her Pension Account or by submitting a physical form to the service provider
(PoP) directly along with the specified documents. For more details please refer
https://www.pfrda.org.in/index1.cshtml?lsid=220

29. How do I decide the Annuity Service Provider (ASP) and plan for
receiving pension?

Presently the following (14) ASPs are empaneled with PFRDA for providing
pension:

1. SBI Life Insurance Co. Ltd

2. Life Insurance Corporation of India
3. Star Union Dai-ichi Life Insurance Co. Ltd
4. ICICI Prudential Life Insurance Co. Ltd
5. HDFC Life Insurance Co Ltd.
6. IndiaFirst Life Insurance Co Ltd
7. Edelweiss Tokio Life Insurance Co. Ltd
8. Bajaj Allianz Life Insurance Co Ltd.
9. Canara HSBC Oriental bank of Commerce Life Insurance co Ltd.
10. Kotak Mahindra Life Insurance Co Ltd.
11. Tata AIA Life Insurance Company Limited
12. Max Life Insurance Company Limited
13. PNB Metlife India Insurance Company Limited
14. Aditya Birla SunLife Insurance Company Limited

The broad variants of annuity plans offered by the ASPs are as under:

• Pension (Annuity) payable for life at a uniform rate to the annuitant only.

Page | 36
 • Pension (Annuity) payable for 5, 10, 15 or 20 years certain and thereafter till
the annuitant is alive.

• Pension (Annuity) payable for life increasing at a simple rate of 3% p.a.

• Pension (Annuity) for life with a provision of 50% of the annuity payable
to spouse for upon death of the annuitant.

• Pension (Annuity) for life with a provision of 100% of the annuity

payable to spouse upon death of the annuitant.

• Pension (Annuity) for life with return of purchase price on death of the
annuitant.

• Pension (Annuity) for life with a provision of 100% of the annuity

payable to spouse upon death of the annuitant and return of
purchase price on death of the spouse.
The pension amount would vary based on the annuity plan and the ASP chosen
by the subscriber. For a comparative analysis of the annuity plans and the ASPs,
please visit https://cra- nsdl.com/CRAOnline/aspQuote.html

30. How will I receive my pension?

Subscriber will receive pension from the Annuity Service Provider (ASP)
according to the Annuity Plan chosen and purchased by the subscriber from the
ASP (Insurance Company) and the terms and conditions therein.

31. What are the rules for withdrawal from Tier-II account?

Withdrawal from NPS Tier-II account is permitted at any point of time, without any
restrictions. You may also transfer the funds from your Tier-II account to Tier-I
account (One-way Switch).

In case of closure of NPS Tier-I (pension account), balance outstanding in NPS

Tier-II account will get withdrawn simultaneously and thereafter transferred to
your Bank account.
IV. GrievanceRedressal
32. Whom should I approach if I have a complaint /grievance?

For resolving subscriber grievances, the Authority has notified the PFRDA
(Redressal of Subscriber Grievance) Regulations, 2015 and an online platform
‘Central Grievance Management System (CGMS)’ has been hosted for
subscriber to lodge grievance online by logging to his/her NPS account.

A complaint/grievance has to be resolved by the intermediary concerned as

early as possible within a maximum period of 30 days of the receipt of the
complaint.

Page | 37
 If a subscriber is not satisfied with the resolution provided, he/she can escalate
his grievance to the next higher level for resolution and the escalation matrix
is as under: -

V. Tax rules under NPS

Tier-I account – Tax benefits on Contributions

i. NPS Contributions are eligible for tax deduction u/s 80 CCD (1) of
Income Tax Act upto 10% of basic + DA or upto 20% of Gross Income for
self-employed within the overall ceiling of ₹1.50 Lacs under Sec. 80 CCE.

ii. An additional deduction upto ₹50,000/- is available u/s 80CCD 1(B) of

Income Tax Act.

iii. In case the subscriber receives contributions from the employer also, tax
deduction under section 80 CCD (2) of Income Tax Act may be
claimed by the subscriber in addition to the tax benefits available
under Sec. 80 CCE, subject to an aggregate limit of ₹7.5 lakh of
contributions made towards NPS, Recognized Provident Fund and
Approved Superannuation Fund.

Tier-I account – Tax implications on Withdrawals / Exit

i. Maximum 60% of the total corpus received as lumpsum at the time of exit
is not treated as income u/s 10 (12A) of Income Tax Act

ii. Amount utilized for purchase of annuity plan from ASP on exit (minimum
40% mandatory upto 100% of corpus) is not treated as income u/s
80CCD (5) of Income Tax Act

iii. Goods and Service Tax (currently 1.8%) is not applicable on annuity plan
purchased through NPS on exit.

Page | 38
 iv. Amount received from partial withdrawal are tax exempt u/s 10 (12B) of
Income Tax Act.

Tier-II account:

i. No tax benefits are available on contributions made in an NPS Tier-II

account.

ii. No tax rebates/special treatment for the gains arising out of

investment in NPS Tier-II. The assesses shall be liable for taxation as per
the marginal tax rate applicable to him/her.

***FAQ is available in IOB Online-→CO Depts-→Govt Accounts Dept-→NPS-→FAQ

on NPS

**********************************************************************************

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