What is NPS Lite?
National Pension System (NPS) is an initiative of Pension Fund Regulatory and Development Authority (PFRDA), the apex body established by Government of India to regulate and develop the pension sector in India. "NPS-Lite Model" is designed to ensure ultra-low administrative and transactional costs, so as to make investments of smaller size possible.
What are the features of NPS Lite Scheme?
Features of NPS Lite Scheme:
- Professional fund management
- Entry age for joining NPS Lite – Swavalamban is 18-60 years
- Flexibility to decide your retirement age
- If retirement is opted for at the age of 60 then up to 60% of accumulated corpus can be withdrawn.
- If retirement is opted for before the age of 60, then up to 20% of accumulated corpus can be withdrawn.
- Pension will be given to the subscriber on a monthly basis based on scheme chosen at the time of retirement.
- Withdrawal amount will be sent directly to the subscribers bank account
What is Swavalamban?
Swavalamban means "SELF RELIANCE".
What is the Swavalamban Benefit?
The government has declared an additional benefit called SWAVALAMBAN which is valid* till FY 2016-17.
To get the benefit of Swavalamban scheme - Investor should have invested minimum Rs 1000/- and Maximum Rs. 12000/- in any particular Year.
Investors, who satisfy the above criteria, will get Rs 1000/- contribution from the Government for that particular year.
Is this Swavalamban benefit only till FY 2016-2017?
This Swavalamban benefit is now valid till FY 2016-2017 & it may or may not be extended thereafter.
Is there any Government Contribution in NPS Lite Swavalamban Scheme?
Under this scheme Govt. of India will contribute Rs. 1000/- in each of those NPS a/c’s against their minimum contribution of Rs1000/-.
What are the conditions to be fulfilled for "Swavalamban" Benefit?
Conditions to be fulfilled for 'Swavalamban' benefit-
- One has to invest an amount of Rs. 1000/- to Rs. 12000/- in any financial year.
- He/she should not be a part of any Provident Fund.
If subscriber pays Rs.1000 in 1st year and not able to pay it in 2nd year then what will be the consequences?
Your investment is safe in this plan, but subscriber will not get Swavalamban benefit of Rs.1000/- as government’s contribution for that specific default year.
How many times should I invest in a year?
There are no lower & upper* limits to the number of contribution per year. The subscriber is free to manage the frequency and amounts of contributions. *More than 12 transactions in a year will cost you Rs.4/- per transaction.
How do I apply for NPS Lite?
You can apply for NPS through any IIFL Gold Loan Branches. You need to fill the NPS Lite form and provide the required documentation along with a minimum contribution of Rs 100.
From where can we get the NPS Lite application forms?
Application forms will be available to all IIFL Gold Loan branches.
To download the application forms, click here
Rs.70 is charged per year as AMC. What would happen to the Account if there is not enough money in it to cover the charges?
Account will become dormant and no transaction will be allowed.
How and in what duration aggregator and subscriber will receive his/her contribution statement?
Annual account statement will be sent once in a year in printed form to aggregator. Aggregator(IIFL) would further distribute it to its underlying subscriber(customers).
What are the documents require with application form?
1 self attestation Xerox copies of Identity proof, Address proof & a recent colour photograph is required along with the application form
Identity Proof documents (Any 1 of the following)
- School leaving Certificate
- Matriculation Certificate
- Degree of Recognized Educational institution
- Depository Account Statement
- Bank Account Statement/ Passbook
- Credit Card
- Water Bill
- Ration Card
- Property Tax Assessment Order
- Voter’s identity Card
- Driving License
- PAN Card
- Aadhaar Card
- Certificate of Identity signed by a Member of Parliament or Member of Legislative Assembly or Municipal Councillor or a Gazetted Officer.
Address Proof documents (should not be more than six months old on the date of submission of application.) (Any 1 of the following)
- Electricity bill
- Telephone bill
- Depository Account Statement
- Credit Card Statement
- Bank Account Statement /Passbook
- Employer Certificate
- Rent Receipt
- Property tax assessment order
- Voter’s Identity Card
- Driving license
- Aadhaar Card
- Certificate of address signed by a Member of Parliament or Member of Legislative Assembly or Municipal Councillor or a Gazetted Officer.
What are the charges that subscriber / client have to bear?
Account Opening Charges - Rs. 35/- (Only one time at the time of registration)
Annual Maintenance Charges - Rs. 50/- (Charged at the end of every year)
What will happen if I already have PF account & apply for NPS Lite?
You cannot open NPS account if he/ she have PF ACTIVE account. Your NPS account can get freeze and may levy penalty also.
Can inactive PF account holder apply for NPS Lite?
Yes, inactive PF account holder can subscribe under NPS pension scheme. Investment should not be done in same month / year in both accounts.
What is PRAN Card?
PERMANENT RETIREMENT ACCOUNT NUMBER will be allotted to all individual subscribers. The PRAN Card is a document with PRAN No, subscriber’s name, father's name, photograph and signature/thumb impression. This card proves the completeness of information in the CRA system.
Can I obtain more than one PRAN card?
No, an individual can hold only one PRAN card. The PRAN card will be unique, permanent and portable. Subscriber cannot open two different accounts in similar name.
Who will issue PRAN Card?
The CRA (Central Recordkeeping Agency) i.e. NSDL will issue PRAN Card to IIFL & then IIFL will issues it to the Subscriber.
What proof will i get for my contribution?
IIFL Gold loan branches will issue the Physical Acknowledgement for the applications made by the subscriber. It is a valid proof that the subscriber has submitted the Application & money to IIFL and able to check the PRAN Status with the help of Acknowledgement.
To whom should I contact for non receipt of PRAN card?
PRAN Card is dispatched to the nodal offices within 20 days from the day of receipt of duly filled registration form at the CRA-FC office. In case of non-receipt of the PRAN Card, a subscriber can check with the associated nodal office or he can check the status by accessing CRA website: http://www.npscra.nsdl.co.in/ and click on link "Track the status of the PRAN Card".
Can I retire at early stage of my age?
Yes, subscriber can retire before 60. He/she just have to intimate to an aggregator (IIFL) in written prescribed form.
Is there any option for premature withdrawal of corpus?
Please find the below mentioned withdrawals –
- After 60 years & up to 70 years - 60% can be withdrawn
- Before 60 years - Only 20% can be withdrawn
After premature withdrawal of 20% corpus amount can I redeposit subscription again?
No, on premature withdrawal account will be closed & annuity (pension) will be provided starting from age of 60.
What will nominee get on the death of subscriber?
On death of subscriber Nominee will have an option to receive 100 percent corpus amount. Contact IIFL and submit necessary documents such as death certificate, identity proof etc.
Can I nominate more than one nominee?
Yes, you can nominate one or more nominee(s) at a time but the total percentage of 100 should be maintained.
For E.g.: Nominee details:
1. Rajni – Wife (25%)
2. Radha – Daughter (25%)
3. Rajesh – Son (50%)
Can a minor be nominee?
Yes, minor can be nominee supported with appointee up to 18 years of age.
What are the different types of pension scheme that I can opt for?
Following are the types of pension scheme that you can opt for:-
- Life time annuity
- Annuity with specific period (5, 10 & 15 years)
- Annuity for you, spouse & corpus to children
- Annuity with return of purchase price
Will I get any tax benefit if I opt for NPS Lite?
You will get a tax benefit u/s 80CCD.
Where can I deposit my NPS Lite premium amount?
You can deposit your NPS Lite premium amount to any branches of IIFL Gold Loan Branches across India.
Can I deposit my NPS Lite premium amount with any other aggregator?
No, you cannot deposit your NPS Lite premium amount to any other aggregator except IIFL Gold Loan Branches.
Will I get my pension amount through bank or in cash?
No cash transaction is permitted at the time of pension. You have to inform your present bank details & pension amount will be directly transferred to your account through NEFT. This is in interest of the subscriber.
Can I change my KYC information in future?
Any change in KYC details (mobile no. & address) must be informed to IIFL. Forms can be downloaded online & are also available with Gold Loan Branches.
If I move to some other residence/city, will the scheme still be valid? How do I make contributions in that eventuality?
Subscriber can retain his/her PRAN card when he/she changes residence/city. The same PRAN card would be valid across the country & you can continue making investments through IIFL Gold Loan Branches who is operational in your locality / city.