NATIONAL PENSION SCHEME – PART 1 – INTRODUCTION By Dr. Chandrakantha Bhat

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#NRImoneyclinic #NPS #NationalPensionScheme

NPS – NATIONAL PENSION SCHEME

Regulated By PFRDA
Voluntary Contribution Scheme
To Create Income Security During Retirement

NPS – NATIONAL PENSION SCHEME

Very Flexible Plan

Range Of Investment Options
Choice Of Pension Fund Managers
Free Switching Between Different Investment Option
Returns Are Market Related

NPS – NATIONAL PENSION SCHEME

Very Simple

Single Identification Number For Life – PRAN
PRAN = Permanent Retirement Account Number

NPS – NATIONAL PENSION SCHEME

Types Of Account

Tier 1 Accounts – Every Indian Citizen Can Open
Tier 2 Accounts – Only For Resident Indians
(Tier 2 Accounts Not Available For NRIs )

NPS – NATIONAL PENSION SCHEME

Portable Across Jobs
Regulated By PFRDA
NPS TRUST – Monitors Performance

NPS – NATIONAL PENSION SCHEME

FUNCTIONAL ARCHITECTURE

PRAN – Is The Core Of This Scheme
PFRDA – Regulates The Scheme
NPS TRUST – Safeguards Subscriber Interest
Central Record Keeping Agency – NSDL
POP = Point Of Presence – Collection Agents
Fund Management – Competing Institutions & Managers
TRUSTEE BANK – Axis Bank
CUSTODIANS OF ASSETS – Stock Holding Corporation

NPS – NATIONAL PENSION SCHEME

BENEFITS

Simple
Very Low Cost
Flexible
Portable
Tax Benefits
Regulated

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