sbi.co.in New Pension System NPS : State Bank of India

Organization : State Bank of India
Service Name : New Pension System NPS
Details : https://www.sbipensionfunds.com/national-pension-system-nps/
Website : https://www.sbi.co.in/

SBI New Pension System

1. New Pension System for every Citizen was introduced from 1st May 2009 by the Pension Fund Regulatory and Development Authority to provide old age pension security to citizens in the age group of 18-60.

Related / Similar Service :
SBI EMS Enterprise Messaging System

A brief detail of the Scheme (Tier I & Tier II) is as below:
** NPS is a voluntary Pension System of Pension Fund Regulatory and Development Authority (PFRDA) open to all citizens in the age group of 18-60 years.
** The Scheme is operative from 01.05.2009.
** The objective is to provide old age pension; reasonable market based returns over long term
** Bank designated branches i.e. Point of Presence-Service Provider (POP-SP) accept the application form and get the subscribers registered with Central Record keeping Agency (CRA) for generation of the Permanent Retirement Account Number (PRAN).
** The PRAN will be quoted in all future transactions.
** There are two models i.e. Tier I and Tier II.
** Tier-I account is where you contribute your savings for retirement into a non-withdrawable account till you reach 60 years and draw pension for the rest of your life.

In case of Tier I :
** Minimum contribution at the time of account opening -Rs.500/-
** Minimum amount per contribution – Rs. 500/-
** Minimum Account Balance at the end of FY – Rs. 6000/-
** Minimum number of contributions in a year  1

** The subscriber will exit the scheme after attaining 60 years of age. The subscriber has the option to defer the withdrawal and stay invested in NPS up to 70 years of age however the subscriber is not allowed to make further contributions. He/She has to compulsorily annuitize 40% of the accumulated pension wealth. Option to annuitize 100% of the corpus is also available.

** A Tier-II account is a voluntary savings account form the subscriber is free to withdraw any time.
** The facility of Tier II account is being offered from December 1, 2009 to all citizens of India including Government employees mandatorily covered by NPS.

In case of Tier II activation of Government employees, mandatorily covered by NPS,
There are two type of employees:
** IRA Compliant – Those Government employees who are having PRAN Card.
** INon-IRA Compliant – Those Government employees who are having only PRAN number, not having PRAN Card. For Tier II activation of these employees KYC verification is required.

** The Tier-II would enable the existing Permanent Retirement Account (PRA) holders to build savings through investments over and above those in the Tier I pension account. An active Tier I account will be a pre-requisite for opening of a Tier II account.
** No additional CRA charges would be levied for account opening and annual maintenance in respect of Tier II. However, CRA will charge separately for each transaction in Tier II, the charges being identical to the transaction charge structure in Tier I

** There are no limits on number of withdrawals in Tier II.
** There is a facility for separate nomination and scheme preference in Tier I and Tier II.
** There is facility of one-way transfer of savings from Tier II to Tier I.
** Bank details will be mandatory for opening a Tier II account.
** No separate KYC for Tier II account opening will be required; the only requirement is a preexisting Tier I IRA Compliant account.

In case of Tier II,
** Minimum contribution at the time of account opening -Rs.1000/-
** Minimum amount per contribution – Rs. 250/-
** Minimum Account Balance at the end of FY-Rs. 2000/-
** Minimum number of contributions in a year – One
In case of Composite Application for Tier I and Tier II both, Minimum contribution at the time of account opening is Rs. 1500/-.

2. Click to download Subscriber Registration Form
3. The Subscriber will be informed of the Permanent Retirement Account Number (PRAN) by the CRA. Once the CRA provides the PRAN, the subscriber can start depositing his subscriptions through his chosen POP-SP.
4. The CRA keeps a record of all subscriptions.

5. A subscriber has three options for his investments :
HIGH RISK HIGH RETURN: Investments in predominantly Equity Market Instruments
MEDIUM RISK MEDIUM RETURN: Investment in predominantly Fixed Income Instruments
LOW RISK LOW RETURN: Investments in purely Fixed Income Instruments.
** In case no option is given Auto Choice will be done automatically.
6. SBI PENSION FUND PRIVATE LIMITED is one of the Pension Fund Managers handling subscription amounts.