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National Pension System (NPS)

Central Scheme (All India) Finance Application Mode: MIXED Active
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Verified Scheme Data Profile

This profile has been independently compiled from official gazette notifications and verified web domains. Authority: Ministry of Finance • State/Region: Central Scheme (All India) • Last Audited: 27 Jul 2026

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A voluntary, defined‑contribution retirement savings scheme administered by the Pension Fund Regulatory and Development Authority (PFRDA) to facilitate systematic long‑term savings for old age.

Detailed Summary

Regulatory Framework

The NPS is governed by the Pension Fund Regulatory and Development Authority (PFRDA) under the NPS Act, 2004. It operates as a Central Government scheme and is open to all Indian citizens, including non‑resident Indians.

Account Structure

Two tiers of accounts are available:

  • Tier‑I: Mandatory retirement account; withdrawals are permitted only on attaining the prescribed retirement age, subject to pension annuity rules.
  • Tier‑II: Voluntary savings account; funds can be withdrawn at any time, offering flexibility for liquidity needs.

Investment Options

Subscribers may choose between active choice (individual asset‑class allocation) and auto‑choice (life‑cycle fund) models. Returns are market‑linked and depend on the performance of the underlying asset classes.

Key Benefits & Financial Assistance

Comparison Criteria Benefits
Key Benefits
  • Tax deduction up to ₹1,50,000 under Section 80C (including employer contribution)
  • Additional deduction of ₹50,000 under Section 80CCD(1B) exclusive of 80C limit
  • Market‑linked returns with option of active or auto asset allocation
  • Portability across employment and geographic locations
  • Ability to withdraw partial corpus from Tier‑II for specific purposes such as education, housing, or medical emergencies

Eligibility Criteria Profile

Comparison Criteria Eligibility
Minimum Age Limit 18 Years or above
Maximum Age Limit 70 Years or below
Occupation Status Salaried, Self‑employed, Homemaker, Student, Unemployed, Farmer, Self-Employed
Domicile State All India (Central Scheme)

Application Process Guide

  1. Complete KYC verification (Aadhaar, PAN, and address proof).
  2. Choose Tier‑I, Tier‑II, or both and select the preferred investment option.
  3. Submit the application online via the eNPS portal or physically at any authorized Point of Presence (POP) bank/financial institution.
  4. Make the initial contribution (minimum ₹1,000 for Tier‑I, ₹250 for Tier‑II).
  5. Receive the Permanent Retirement Account Number (PRAN) and account statements.

Common FAQs regarding this Yojana

Yes. An individual may hold one Tier‑I account and any number of Tier‑II accounts, each linked to the same PRAN.

The accumulated corpus, after deduction of applicable charges, is transferred to the nominee(s) as per the nomination details submitted at account opening.

No. Tier‑II allows unrestricted withdrawals, subject to the minimum balance requirement of ₹1,000.