Eligibility

An individual meeting the following eligibility criteria can voluntarily subscribe to the National Pension System (NPS): 
• Must be an Indian Citizen (resident or non-resident) or an Overseas Citizen of India (OCI) 
• Should be aged between 18 to 70 years 
• Must comply with Know Your Customer (KYC) requirements as prescribed  in the NPS subscriber application form 
 
Note: 
• Hindu Undivided Families (HUFs) and Persons of Indian Origin (PIOs) are not eligible to subscribe to NPS. 
• NPS is strictly an individual pension account and cannot be opened on behalf of another person. 
• The applicant must be legally competent to enter into a contract under the Indian Contract Act.

Benefits

The National Pension System (NPS) offers the following key benefits to subscribers: 
 
• Regulated - NPS is regulated by PFRDA, a statutory authority established under the PFRDA Act, 2013. 
• Pension for All - Can be voluntarily subscribed to by any Indian Citizen (resident, non-resident, or Overseas Citizen of India). 
• Low Cost - One of the lowest-cost pension schemes globally, enabling cost-effective retirement planning. 
• Flexible - Subscribers can choose their Point of Presence (PoP), Central Recordkeeping Agency (CRA), Pension Fund, and Asset Allocation. 
• Portable - NPS account is portable across employment types and geographic locations, ensuring continuity. 
• Tax Efficient - Attractive tax benefits under the Income Tax Act, 1961, are available to NPS subscribers. 
• Optimum Returns - Provides market-linked returns based on investment decisions made by the subscriber. 
• Transparent - Subscribers enjoy 24x7 online access to their NPS account, with mandatory public disclosures ensuring transparency.

Enrolment

An NPS individual pension account can be opened through the following modes: 

• Points of Presence (PoPs) registered with PFRDA - Available in online or physical mode 
List of PoPs 
PoPs are the primary distribution channel and first point of contact for NPS applicants. The following are roles and responsibilities  
• Subscriber registration and KYC verification 
• Receiving/uploading contributions 
• Processing of service requests 
• Facilitating  the subscribers in choice changes, withdrawals 

Redressing subscribers' queries and grievances  

• Online Platform (eNPS) by NPS Trust – Open an NPS account online

Documents Required for NPS Enrolment

To open an Individual Pension Account under NPS, the subscribers are required to submit the Subscriber Registration Form (CSRF/NRSF/online format) along with the following documents via physical or online mode: 
 
For Resident Individuals: 
• One recent photograph 
• PAN Card 
• Proof of Address 
• Proof of Bank Account 

For Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs): 

Non-resident Individual (NRI)	Overseas Citizen of India (OCI)
One Recent Photograph	One Recent Photograph
PAN Card	PAN Card
Indian Passport	OCI Card
Proof of Address - India	Proof of Address - Foreign Country
Proof of Bank Account (NRE/NRO)	Proof of Bank Account (NRE/NRO)

Refer to the subscriber registration form for the full list of acceptable proofs.

Types of NPS Accounts - Tier I and Tier II

Under the National Pension System (NPS), there are two types of accounts available to subscribers: 
 
Tier I Account – Individual Pension Account 
• Default pension account under NPS 
• Minimum contribution to open: ₹500 
• Minimum annual contribution: ₹1,000 
• Treated as a retirement savings account 

• Withdrawals allowed in accordance with Pension Fund Regulatory and Development Authority (Exits and Withdrawals under the National Pension System) Regulations, 2015 and amendment issued thereunder 
• Eligible for tax benefits under the Income Tax Act, 1961 

Tier II Account – Optional Investment Account 
• Available only to subscribers with an active Tier I account 
• Minimum contribution to open: Rs. 1,000 
• Minimum contribution per transaction: Rs. 250 
• No restrictions on withdrawals - At any time the subscriber can withdraw  
• It’s an investment account and not eligible for tax benefits 

Note: 
• NRIs/OCIs with Tier I accounts are not permitted to activate Tier II account 
• Subscribers may choose different Pension Funds and Investment Options for Tier I and Tier II accounts 

Contribution - How to Contribute to Your NPS Account?

A subscriber can make unlimited contributions to their Tier-I or Tier-II NPS account, with no upper limit on the amount, using any of the following modes: 
 
1. Physical Mode 
• Visit any registered Point of Presence (PoP) 
• Deposit contribution via cheque or cash along with the NPS Contribution Slip 
 
2. Online Mode  
a) Web-Based Options: 
• Log in to your NPS Pension Account or 
• Use the online contribution facility provided by PoPs or 
• Access the eNPS platform of NPS Trust 
 
b) NPS Mobile App – Login and contribute using the app 
 
c) D-Remit Facility – Create a Virtual ID linked to PRAN, with the option to use UPI and QR code 
 
The contributions will be invested as per the subscriber’s selected Pension Fund and asset allocation, as recorded with the Central Recordkeeping Agency (CRA). 

Investment Choices

The NPS contributions made by a subscriber are invested as per the choices (Pension Fund and Asset Allocation) selected and recorded with the Central Recordkeeping Agency (CRA). 
 
(A) Selection of Pension Funds 
Subscribers can select any one of the Pension Funds registered with PFRDA. 
To view the complete list, please click here. 

Subscriber can change the pension fund once in a year. 
 
(B) Investment Choice for Asset Allocation 
Subscriber contributions are invested by the chosen Pension Fund in compliance with PFRDA’s investment guidelines across the following Asset Classes: 
• Equity (E) 
• Corporate Bonds (C) 
• Government Securities (G) 
• Alternate Assets (A) 
 
Subscribers can select their investment approach via: 
 
1. Active Choice 
Subscribers actively decide the percentage allocation to each asset class: 
• Equity (E): Up to 75% 
• Corporate Bonds (C): Up to 100% 
• Government Securities (G): Up to 100% 
• Alternate Assets (A): Up to 5% 
 
2. Auto Choice 
Funds are automatically invested in pre-defined proportions across Equity, Corporate Bonds, and Government Securities based on the subscriber’s age: 
• Allocation remains constant until age 35 
• Equity allocation reduces gradually with age 

Auto Choice is available through the following Life Cycle Funds: 
1. LC25 – Conservative Life Cycle Fund 
2. LC50 – Moderate Life Cycle Fund (Default Option) 
3. LC75 – Aggressive Life Cycle Fund 
4. BLC - Balanced Life Cycle Fund (Modified LC 50) 
 

Age	Aggressive Life Cycle Fund (LC-75)			Moderate Life Cycle Fund (LC-50)			Conservative Life Cycle Fund (LC-25)			Balanced Life Cycle Fund (BLC)
	Asset Class (%)			Asset Class (%)			Asset Class (%)			Asset Class (%)
	E	C	G	E	C	G	E	C	G	E	C	G
Upto 35 years	75	10	15	50	30	20	25	45	30	-	-	-
Upto 36 years	71	11	18	48	29	23	24	43	33	-	-	-
Upto 37 years	67	12	21	46	28	26	23	41	36	-	-	-
Upto 38 years	63	13	24	44	27	29	22	39	39	-	-	-
Upto 39 years	59	14	27	42	26	32	21	37	42	-	-	-
Upto 40 years	55	15	30	40	25	35	20	35	45	-	-	-
Upto 41 years	51	16	33	38	24	38	19	33	48	-	-	-
Upto 42 years	47	17	36	36	23	41	18	31	51	-	-	-
Upto 43 years	43	18	39	34	22	44	17	29	54	-	-	-
Upto 44 years	39	19	42	32	21	47	16	27	57	-	-	-
Upto 45 years	35	20	45	30	20	50	15	25	60	50	30	20
Upto 46 years	32	20	48	28	19	53	14	23	63	48	28	24
Upto 47 years	29	20	51	26	18	56	13	21	66	46	26	28
Upto 48 years	26	20	54	24	17	59	12	19	69	44	24	32
Upto 49 years	23	20	57	22	16	62	11	17	72	42	22	36
Upto 50 years	20	20	60	20	15	65	10	15	75	40	20	40
Upto 51 years	19	18	63	18	14	68	9	13	78	39	18	43
Upto 52 years	18	16	66	16	13	71	8	11	81	38	16	46
Upto 53 years	17	14	69	14	12	74	7	9	84	37	14	49
Upto 54 years	16	12	72	12	11	77	6	7	87	36	12	52
Upto 55 years and beyond	15	10	75	10	10	80	5	5	90	35	10	55

  
For detailed investment guidelines, refer to the Circular Section of PFRDA website. 

The subscribers can change the asset allocation/investment choice four times in a year 

Charges

Each intermediary is entitled to recover the following prescribed charges from the subscriber towards the services rendered by them (excluding GST and other taxes as applicable): 

Intermediary	Service		Service Charges*			Method of Deduction
Point of Presence	Initial Subscriber registration		Up to Maximum ₹400  (negotiable within slab only)			To be collected upfront
	Initial Contribution		Upto 0.5% of contribution, subject to Maximum ₹25000/-
	All Subsequent   Contribution
	All Non-Financial transaction		Up to maximum ₹30/-
	eNPS (for subsequent contribution)		Up to 0.20% of contribution,  subject to maximum ₹10,000/-  (Only for NPS All Citizen and Tier-II accounts)
	Trail commission  for D-Remit  Contributions		Up to 0.20% of the contribution amount  subject to maximum ₹10,000/-  (Only for NPS All Citizen and Tier – II Accounts)			Through unit deduction on periodical basis
	Processing of withdrawal / exit		Up to 0.125% of corpus subject to maximum ₹500/-			To be collected upfront
	Persistency  (payable to such POPs to which the subscriber is associated for more than six months in a financial year)		₹50/- p.a. for annual contribution ₹1,000/- to ₹ 2,999/-  ₹75/- p.a. for annual contribution ₹3,000 to ₹6,000  ₹100/- p.a. for annual contribution above ₹6,000/-  (only for NPS All Citizen model)			Through cancellation of units
Central Recordkeeping Agency	Account Opening charges, if subscriber	opts for a physical PRAN card	Protean	K Fintech	CAMS
			₹40/-	₹39.36/-	₹40/-
		opts for ePRAN card and a physical welcome kit	₹35/-	-	-
		opts for ePRAN card and a digital welcome kit via email only	₹18/-	₹18/-	₹18/-
	Annual Account Maintenance Charges		₹69/-	₹57.63/-	₹65/-
	Charge per transaction  (Financial /non-financial)		₹3.75	₹3.36/-	₹3.50/-
Pension Fund	Investment Management Fee		0.03% - 0.09% of AUM p.a.			Adjustment in NAV of Scheme
NPS Trust	Reimbursement of Expenses		0.003% of AUM p.a.
Custodian	Asset Servicing charges		0.000000001770% of assets in custody p.a.

Tier-II transaction charges are the same as Tier-I. 

Withdrawal/Exit

Withdrawal and exit from the NPS Tier-I Account are subject to the following conditions: 

(i) Partial Withdrawal 
• Allowed after 3 years of account opening 
• Up to 25% of subscriber’s own contributions can be withdrawn only 
• Permitted for specific purposes such as: 

• Critical illness

• Disability 

• Education or marriage of children 

• Purchase of property 

• Starting a new venture 

 • Maximum of 3 partial withdrawals allowed during the NPS tenure 

(ii) Premature Exit 
• Applicable after 5 years of joining 
• If subscriber joined after 60 years, allowed after 3 years 
• Up to 20% of the corpus can be withdrawn as a lump sum 
• At least 80% must be used to purchase an annuity for a regular pension 
• If the total corpus is less than ₹2.5 lakh, the entire amount can be withdrawn as a lump sum 
 
(iii) Normal Exit 
• Allowed at 60 years of age (or after 3 years, if joined after 60) 
• Up to 60% of the corpus can be withdrawn as a lump sum 
• Minimum 40% must be used to buy an annuity 
• If the corpus is less than Rs. 5 lakh, the entire amount can be withdrawn as a lump sum 
 
Additional Exit Options 
• Subscriber can continue in NPS up to 75 years of age or exit at any time before 75 
• At the time of exit, a subscriber can: 

• Defer withdrawal of the 60% lump sum until 75 years or withdraw in instalments using Systematic Lump sum Withdrawal (SLW) 

• Defer annuity purchase (40% corpus) until 75 years 

In Case of Subscriber’s Death 
• Nominee/legal heir is entitled to withdraw the entire accumulated corpus 
• Option available to purchase annuity by nominee/family, if desired 
 

Tier-II Account Withdrawal 
• No restrictions on withdrawal from Tier-II NPS account 
• Tier-II account will be closed compulsorily upon closure of the Tier-I account