Reliance Pension Fund NPS National System & Investment
Organization : Reliance Capital Pension Fund Limited
Service Name : NPS National Pension System & Investment
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Website : http://reliancepensionfund.com/schemes/default.aspx?shortname=schm
Investment Options
NPS is available to all citizens of India with effect from 1st May 2009 (Other than Government employees already covered under NPS). Under NPS two types of accounts are available and the subscribers have the option to actively decide how their contribution is to be managed in the following three options.
Related : NPS Trust eNPS Registration/ Contribution : www.statusin.in/17907.html
Options:
** Asset Class E
** Asset Class C
** Asset Class G
Who can join?:
** The subscriber should be a citizen of India whether resident or non-resident and age between 18-60 years on the date of submission of his/her application to Point of Presence (POP)/Point of Presence – Service Provider (POP-SP).
** The subscriber should comply with the Know Your Customer (KYC) norms as detailed in the Subscribers Registration Form. All the documents required for KYC compliance need to be mandatorily submitted.
Who cannot join?:
The following applicants cannot join:
** Undischarged insolvent: Individuals 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 purposes 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 holders under NPS.
NPS Accounts:
Under NPS following two types of accounts will be available
Tier – I :
Subscriber shall contribute their savings for retirement into this non-withdrawable account. Tier-I account available from 1st May, 2009.
Contribution:
Subscribers are required to make their NPS contribution to Tier – I, subject to following conditions:
** Minimum amount per contribution – Rs 500
** Minimum total amount of contribution per year – Rs 6000.
** Minimum number of contributions made each year – 1
Tier – II :
This is a voluntary savings facility. Subscriber will be free to withdraw their savings from this account whenever he/she wishes. The facility of Tier-II account is being offered from 1st December, 2009. This account would enable the existing PRAN holders to build savings through investments over & above those in the Tier – I account. An active Tier-I account will be a pre-requisite for opening of a Tier-II account.
Key Features of Tier-II account :
1. No. additional CRA charges will be levied for account opening & annual maintenance in respect of Tier-II.
2. There will be no limits on the number of withdrawals.
3. There will be facility for separate nomination and scheme preference in Tier-II.
4. The subscriber would have the same choice of PFMs and schemes as in the case of Tier-I account in the unorganized sector.
5. Contributions can be made through any POP/POP-SP.
6. There will be facility of one-way transfer savings from Tier-II to Tier-I.
7. Bank details will be mandatory for opening a Tier-II account.
8. No separate KYC for Tier-II account opening will be required; the only requirement is a pre-existing Tier-I account.
Contribution:
** Minimum contribution at the time of account opening – Rs. 1,000
** Minimum amount per contribution – Rs 250
** Minimum account balance at the end of financial year – Rs. 2,000
** Minimum number of contributions made each year – 1
** (Minimum one contribution in case a subscriber joins in the last quarter)
** Penalty of Rs. 100 to be levied on the subscriber for not maintaining the minimum account balance and/or not making the minimum number of contributions.
Investment Features:
NPS offers subscriber two approaches to invest their money
Active Choice:(Individual Funds):
The subscriber will have the option to actively allocate his contribution among the three asset classes:
1.Asset Class E: The Investment in this class would be subject to cap 50%. It would be invested in shares of the companies which are listed on Bombay Stock Exchange or National Stock Exchange and on which derivatives are available or are a part of BSE Sensex or Nifty 50 Index.
2. Asset Class G : Investment would be in Central Government Bonds and State Government Bonds.
3.Asset Class C : Investment would be in Credit Risk bearing fixed income securities other than Central and State Government Bonds.