National Pension System (NPS)

About NPS

National Pension System (NPS) is a voluntary retirement savings scheme regulated by the Pension Fund Regulatory and Development Authority (PFRDA). The scheme helps individuals build a retirement corpus and secure financial stability after retirement through systematic savings and market-linked returns.

Key Benefits

Low-cost pension scheme
Market-linked returns
Portable across jobs and locations
Online account access and management
Regulated and transparent framework
Long-term retirement security

Eligibility (Non-Government Sector – All Citizen Model)

Any individual meeting the following criteria can subscribe to NPS:

Indian Citizens (Resident or Non-Resident) and Overseas Citizens of India (OCI)
Age between 18 and 85 years
Compliance with KYC requirements prescribed under NPS guidelines

Types of NPS Accounts

Tier I Account

Primary retirement account
Eligible for tax benefits
Restricted withdrawals as per NPS guidelines

Tier II Account

Voluntary savings account
Flexible withdrawals
Limited tax benefits

NPS Vatsalya

Special pension scheme for minors below 18 years, operated by parent/guardian
Convertible into regular NPS account after attaining 18 years of age
Supports long-term savings and retirement planning for children
Exit/withdrawals permitted subject to PFRDA guidelines and eligibility conditions

Minimum Contribution

Tier I Account

Minimum contribution per transaction: ₹500
Minimum annual contribution: ₹1,000

Tier II Account

Minimum opening contribution: ₹1,000
Minimum subsequent contribution: ₹250

Withdrawal and Exit

Particulars	Withdrawal and Exit Details
Entry and Exit Age	Entry and exit age increased to 85 years.
Lock-in Period	5-year minimum subscription (lock-in) period removed for All Citizen Model (CS & MSF).
Normal Exit – After 60 years or 15 years	Vesting period → 15 years or any higher period stipulated under a scheme; or till 60 years of age (whichever is earlier). Up to 80% lump sum withdrawal and minimum 20% annuity purchase. For corpus up to ₹12 lakh: • Up to ₹8 lakh – 100% lump sum or other approved payout options. • Above ₹8 lakh and up to ₹12 lakh – Up to ₹6 lakh lump sum and balance through approved payout options. For any corpus → Up to 80% lump sum & At least 20% annuity applies.
Premature Exit – Before 60 years or 15 years	Up to 20% lump sum withdrawal and minimum 80% annuity purchase. For corpus up to ₹5 lakh – 100% lump sum or other approved payout options.
Exit Due to Death	100% lump sum permitted; additionally, option for availing SLW (Systematic Lump Sum Withdrawal), SUR (Systematic Unit Redemption), annuity or other approved options.
Automatic Continuation	15-day prior intimation requirement removed across sectors.
Financial Assistance Against Pension Corpus	Subscriber may seek financial assistance from regulated financial institutions subject to applicable guidelines.
Frequency of Partial Withdrawal (max 25% of contribution)	Before 60 years: Maximum 4 withdrawals with minimum 4-year interval. After 60 years: Unlimited withdrawals with minimum 3-year interval, as per guidelines.

Exit for Subscribers Joining After 60 Years of Age

Exit Type	Conditions and Limits
Exit	No lock-in period. Up to 80% lump sum withdrawal and minimum 20% annuity purchase.
Exit	1. For corpus up to ₹12 lakh – 100% lump sum or SLW or SUR or other approved options. 2. For any corpus → Up to 80% lump sum & At least 20% annuity applies.
Exit Due to Death	100% lump sum withdrawal permitted along with other approved options.

Tax Benefits

Tax benefits are available under applicable provisions of the Income Tax Act, including Sections 80CCD(1), 80CCD(1B), and 80CCD(2).

Grievance Redressal Officer (GRO)

Name: M V M Bhaskar
Email: HOD.FI@TGB.BANK.IN
Contact Number: +91 9491041803

Disclaimer

NPS is regulated by PFRDA. Tax benefits, withdrawal rules, contribution limits, and other provisions are subject to change as per Government of India and PFRDA guidelines from time to time.