Subscribers can apply for NPS through the below mentioned routes:
- Online Mode : Subscribers can apply for NPS account online by clicking on the below mentioned link Click here
- Offline Mode : Subscriber desirous to join NPS can visit nearest Kotak Mahindra Branch and submit the following documents
- Duly filled Subscriber Registration Form (CSRF1)
- KYC Documents as per PFRDA norms
- ID proof : PAN card, Aadhaar card / letter issued by Unique Identification Authority of India, Voter ID card, Passport, Bank passbook with photograph,Valid driving license with photograph, Ration card with photograph, Certificate of the POP bank for an existing Bank customer, Certificate of Identity with photograph signed by a Member of Parliament or Member of Legislative Assembly, Job cards issued by NREGA duly signed by officer of State Government, Identity card issued by Central/State government and its Departments, statuary/ Regulatory Authorities, Public Sector Undertakings, Scheduled commercial Banks, Public Financial Institutions, Colleges affiliated to universities and Professional Bodies such as ICAI, ICWAI, ICSI, Bar Council etc, Photo Identity Card issued by Defence, Paramilitary and Police departments, Ex-Service Man Card issued by Ministry of Defence to their employees, Photo Credit card.
- Address proof : Voter ID card, Aadhaar card, Bank statement (minimum 1 month old), Ration card with photograph & residential address, Bank Pass book or certificate with photograph and residential address, Certificate of the POP bank for an existing Bank customer, Valid Driving license with photograph and residential address, Letter from any recognized public authority at the level of Gazetted officer like District Magistrate, Divisional commissioner, BDO, Tehsildar, Mandal Revenue Officer, Judicial Magistrate etc, Certificate of address with photograph signed by a Member of Parliament or Member of Legislative Assembly, Job cards issued by NREGA duly signed by an officer of the State Government, The identity card/document with address, issued by any of the following: Central/State Government and its Departments, Statuary/Regulatory Authorities, Public Sector Undertakings, Scheduled Commercial Banks, Public Financial Institutions for their employees, Latest Electricity/water bill in the name of the Subscriber showing the address (less than 3 months old), Latest Telephone bill in the name of the Subscriber showing the address (less than 3 months old), Latest Property/house Tax receipt (not more than one year old).
- Initial Contribution Amount
- Rs. 500 if opted only for Tier I account
- Rs. 1500 if opted for both Tier I and Tier II accounts
- The Cheque should be in favour of "Kotak Mahindra Bank Collection Account - NPS Trust"
- Cancelled cheque is mandatory for opening Tier-II A/C.
Existing Kotak Bank customers can subscribe to NPS by simply logging on to Kotak Net Bank Website and fill up the online application form to enrol for the NPS Scheme.
To login into Kotak net Banking, please click here
National Pension System (NPS) is a voluntary, defined contribution retirement savings scheme designed to enable the subscribers to make optimum decisions regarding their future through systematic savings during their working life. NPS seeks to inculcate the habit of saving for retirement amongst the citizens.Who Can Join
Who cannot join
- A citizen of India including NRI.
- Age between 18 years and 60 years at the time of submission of application
- Complied with KYC (Know Your Customers) norms
- As per NPS rules, OCI and PIO card holders are not eligible
- Undercharged insolvent: Individual who are not granted an 'order of discharge' by a court
- Individuals of unsound mind: An individual is said to be of unsound mind for the purpose of making a contract if, at the time when he makes it, he is incapable of understanding it and of forming a rational judgment regarding its effect upon his / her self - interest.
- Pre - existing account holder under NPS.
Subscribers invest in their PRA periodically and at the time of retirement (at the age 60 years), the accumulated wealth which is also known as Pension Wealth is made available for purchasing Pension for rest of their lives.
PRA gives access to two types of NPS accounts to Subscribers :
- Tier I Account: This is known as pension account and is mandatory to open. Withdrawal is restricted from this account till the subscriber attains the age 60.
- Tier II Account: This is normal investment account and is optional to open. Subscribers can withdraw from this account as per their requirements.
Tier II account can be opened along with Tier I account. Also, subscribers have the option to open Tier II account at any point of time after Tier I account is opened. Please note that an active Tier I account is mandatory for opening Tier II account.
Contribution Requirement for NPS Accounts:
|Particulars||Tier I||Tier II|
|Minimum Contribution required at the time of Account opening||Rs. 500||Rs. 1000|
|Minimum Subsequent Contribution Amount required||Rs. 500||Rs. 250|
|Minimum Contribution required per year||Rs. 1000||NIL|
|Minimum number of contribution required in a year||1||NIL|
There is no requirement of maintaining the minimum balance at end of each of the financial year under Tier-II account of NPS.
NPS gives Subscribers an option to invest according to their own choice and risk appetite among three funds also known as Asset Classes:
|C||Fixed Income Instruments other than Govt. Securities|
Maximum exposure to Equity Fund (E) is restricted to 50% of corpus amount. However, subscribers can invest 100% of their corpus to Corporate Bonds or Government Securities Fund. It offers subscribers two scheme preferences also known as Investment Options:
Life Cycle Fund: Pre-defined Investment Pattern
- Under this option, Subscribers are free to allocate the investment across three asset classes as per their choice
- Maximum allocation to asset class E is restricted to 50%
- Under this option, investment across three funds is made as per the pre-defined pattern known as life - cycle fund
- It depends on the age of the person
|Age||E (%)||C (%)||G (%)|| ||Age||E (%)||C (%)||G (%)|
|45||30||20||50|| || |
As a unique feature, subscribers get an option to select a fund manager to manage their investment portfolio. Currently, 7 fund managers are registered with PFRDA
to manage the investment portfolio of NPS Subscribers.
Vesting from Tier I Account
- Kotak Mahindra Pension Fund Limited
- ICICI Prudential Pension Funds Management Company Limited
- LIC Pension Fund Limited
- SBI Pension Funds Private Limited
- UTI Retirement Solutions Limited
- Reliance Capital Pension Fund Limited
- HDFC Pension Management Company Limited
|Particulars||Before the age 60 / Superannuation date as per service rules||At the age 60 / Superannuation date as per service rules|
|Minimum Amount required to buy Annuity||80% of Pension Wealth||40% of Pension Wealth|
|Withdrawal of Balance Amount||Only in one Lump sum immediately, no deferment allowed||In upto10 annual instalments till 70 years of age.|
Lump sum at any point of time before attaining the age of 70 years.
Withdrawal can be deferred up to 70 years of age* -
|When would Annuity start||Annuity will start immediately irrespective of age of the subscriber at the time of withdrawal||Annuity will start immediately after it is purchased.|
Purchase of annuity can be made immediately on retirement
Deferred by up to 3 years from retirement date*
|Contribution beyond 60 years / superannuation age||Not available||Allowed till 70 years of age*, Normal rules of account operation will continue to apply till exit of the subscriber from NPS. There will be no option for the deferment of the annuity purchase or deferment of withdrawal under this option which can be done anytime.|
|What happens to PRAN||PRAN will be closed.||PRAN will be closed.|
|What happens if Tier II account is also there||Amount available in Tier II account will be credited to Subscriber's Bank account automatically and Tier II account will also be closed.||Amount available in Tier II account will be credited to Subscriber's Bank account automatically and Tier II account will also be closed.|
* Request needs to be given in Central Recordkeeping Agency (CRA) system latest 15 days before retirement date.
Withdrawal / Exit from NPS: Subscribers can now initiate the withdrawal of their funds from NPS online on CRA-NSDL portal.Annuity Services:
On retirement, Subscriber can select any of the PFRDA registered Life Insurance Companies to offer Annuity Plans. Below is the list of Life Insurance companies registered with PFRDA to provide annuity services
Intermediaries in NPS Architecture
- Life Insurance Corporation of India Limited
- SBI Life Insurance Company Limited
- ICICI Prudential Life Insurance Company Limited
- Star Union Dai-ichi Life Insurance Company Limited
- HDFC Standard Life Insurance Company Limited
- POP / POP - SP: Point of Presence / Point of Presence - Service Provider is first point of contact for subscribers under NPS architecture. Primary role for POP / POP - SP is marketing of NPS and providing services to all NPS subscribers. Kotak Mahindra Bank is one of the leading POP for NPS.
- CRA: Central Recordkeeping Agency is responsible for recordkeeping, servicing of customer requests processed through POP / POP - SP, issuance of PRAN card and Welcome KIT etc. It is also responsible for providing strong system support for customers and POP / POP - SP. NSDL is CRA in NPS architecture
- Pension Fund Manager: PFM is responsible for investment of contribution amount deposited by the subscribers. Kotak Mahindra Pension Fund Limited is one of the Pension Fund Manager.
- Trustee Bank: Trustee Bank is an interface with CRA and Pension Fund Managers. It manages the banking of Pension Funds in accordance with applicable provisions of NPS.
- Custodian: Stock Holding Corporation of India Limited (SCHIL) acts as Custodian in NPS architecture. The entity is responsible for holding and safeguarding assets of the NPS Trust.
- Annuity Service Provider: Annuity Service Providers are responsible for delivering a regular monthly pension to subscribers for rest of their lives.
- NPS Trust: The NPS Trust is established by PFRDA. It is responsible for taking care of funds under NPS. The trust holds an account with Trustee Bank.
Click here to view FAQs about NPS
NPS offers bundles of features to subscribers which make it a unique investment option for the subscribers. Some of the features are mentioned below:
- Prudently Regulated: NPS is prudently regulated by PFRDA, with transparent investment norms and regular monitoring and performance review of Pension Fund Manages by NPS Trust.
- Portable Account: PRAN is portable across jobs and geographies. PRAN of the Subscriber remains the same throughout the life span of the Subscriber.
Subscriber can contribute to their NPS A/C from any POP-SP
- Extremely Low Cost Investment Option: NPS is one of the least cost investment options available for individual subscribers
- Choice of
- Fund Managers
- Investment Options
- Tax Benefit on Tier-I Contribution
- Own Contribution: Contribution made by an individual to the extent of Rs. 1,50,000 p.a. is eligible for deduction (This deduction is subject to the overall ceiling of Rs. 1,50,000 p.a. specified u/s 80CCE of the Income Tax Act). Further maximum deduction allowable under this section cannot exceed 10% of salary (Basic + DA). An additional contribution of Rs. 50,000 p.a. is eligible for an additional deduction of Rs. 50,000 p.a. under Section 80 CCD (1B).
- Employer Contribution: Contribution made by the employer of the subscriber to the extent of 10% of salary (Basic and DA) is additionally eligible for deduction u/s 80CCD (2) of Income Tax Act, 1961 without any upper limit in terms of value. This benefit is available to subscribers under corporate model only when the employer deducts employer contribution from salary.
- Freedom to
- Switch amongst Funds, Fund Managers and Investment Options
- Increase / decrease the investment amount for the year
- Change the frequency of contribution from Kotak Savings account
- Select different asset allocation, scheme preference and pension fund manager for Tier I and Tier II accounts
- Nominate different nominees for their Tier I and Tier II accounts
- Make contribution in NPS account from any of the NPS enabled Kotak Bank branches from Kotak Savings account and online from Kotak netbanking.
- Easy Accessibility of Account Details
- Online Access: Subscribers get log in ID and Password of Central Recordkeeping Agency (CRA) system where account details can be seen.Get T-PIN from CRA. By using this T-PIN, subscribers can call on CRA call centre number to access their account details.
Subscribers can also
- View / Change of the contact details (Tel / Mobile / E-Mail ID)
- Change of scheme preference
- Fund Manager & Asset allocation change
- View/download their Account statements
- Initiate the request of withdrawal of funds from Tier II a/c
- Initiate extension of contribution beyond 60 years &
- Initiate deferment of purchase of annuity beyond 60 years etc.
- Access to NPS Mobile Application: Subscriber can download the mobile app from Google Play store. Subscribers can avail the below mentioned facilities in the mobile app.
- View / Change of the contact details (Tel / Mobile / E-Mail ID)
- Change of scheme preference
- Fund Manager & Asset allocation change
- View last 5 contributions.
- Latest value of the holdings.
- Request latest statement of transaction to the registered email ID.
- Access through Branch: Subscriber can visit any of the NPS Enabled Kotak Mahindra Bank Branches to get the details of NPS account/ submit the offline NPS account opening forms/ modification requests etc.
- Statement of Account: Subscribers can view/ download their account statements by logging into CRA-NSDL portal. NSDL also sends annual account statement comprising all the financial transactions to each subscriber at the end of each financial year.
- Access through Net Banking: Kotak Mahindra Bank Savings Accounts customers can make contributions to their NPS Account, check account details & fund performance at their own convenience through Kotak Net Banking Website.
- Issuance of PRAN Card: Upon successful registration, subscriber gets PRAN Card that contains Subscriber's Name, Subscriber's Father's Name, Date of Birth of Subscriber, Signature and Photograph of Subscriber.
- No TDS deducted on withdrawal amount.
In order to promote NPS in corporate sector, NPS Corporate Sector model was launched by the regulator in December 2011. It is based on the concept of Employer - Employee relationship.
Under NPS Corporate Sector model, employee as well as employer can contribute to Tier I NPS account of the employee as mentioned below.
Tax Benefit on Tier-1 Contribution
- Equal contribution from employer and employee
- Un-equal contribution from employer and employee
- Contribution either from employer or from employee
- Contribution made by an individual to the extent of Rs. 1,50,000 p.a. is eligible for deduction (This deduction is subject to the overall ceiling of Rs. 1,50,000 p.a. specified u/s 80CCE of the Income Tax Act). Further maximum deduction allowable under this section cannot exceed 10% of salary (Basic + DA). An additional contribution of Rs. 50,000 p.a. is eligible for an additional deduction of Rs. 50,000 p.a. under Section 80 CCD (1B).
- Contribution made by the employer of the subscriber to the extent of 10% of salary (Basic and DA) is additionally eligible for deduction u/s 80CCD (2) of Income Tax Act, 1961 without any upper limit in terms of value. This benefit is available to subscribers under corporate model only when the employer deducts employer contribution from salary.
An employee can join NPS through Corporate Sector model only if his / her employer is registered for the same.
In order to know more about NPS Corporate Sector Model, please write to firstname.lastname@example.org