Thursday, March 17, 2011

National Pension Scheme (NPS) - All your Questions Answered!!!

In the previous chapter, we saw what the National Pension Scheme or the New Pension Scheme is and what the purpose of that scheme is. By the end of the chapter, you would have got a few or rather a lot of questions related to the scheme. If you had, don't worry about searching the internet for the answers because, this chapter is going to do it for you.

So, lets get started!!!

1. Who can invest in NPS?

Any Indian citizen between the age of 18 to 60 years can invest in NPS. However, persons having an existing NPS account and government employees who are already covered under NPS cannot again open an additional account under NPS.

2. Can an NRI open an NPS account?

Yes. An NRI can open an NPS account if the NRI has a bank account with a bank based in India. Contributions made by NRI are subject to regulatory requirements as prescribed by RBI and FEMA from time to time.

3. What if my citizenship status changes after I open a permanent retirement account under NPS?

NPS is available only to citizens of India. If the subscriber's citizenship status changes, his/ her NPS account would be closed.

4. If I have invested in any other Provident Fund, can I still invest in NPS?

Yes. Investment in NPS is independent of your contribution to any Provident Fund.

5. I have invested in pension funds of non government / private entities. Can I still invest in NPS?

Yes. Investment in NPS is independent of your subscription to any other pension fund. It is a purely voluntary scheme and the investor can make the decision to choose the NPS or any other private entity that provides pension schemes (like ICICI or HDFC)

6. Are there any online trading websites that provide NPS Subscription facilities?

Per my knowledge, ICICI Direct website provides this facility

7. What is PRAN?

PRAN stands for Permanent Retirement Account Number. Every individual who invests in the NPS will be allotted a PRAN.

8. How will I know my PRAN?

After your NPS / permanent retirement account is opened, CRA will intimate you about your PRAN by issuing a PRAN allotment letter.

You will also receive a Telephone Password (TPIN) and Internet Password (IPIN). The TPIN can be used to access your NPS account on the call centre number of CRA (1800222080). While your IPIN can be used to access your account on CRA website ( on a 24 x 7 basis.

9. Are there any conditions for making contributions to the NPS account?

Yes. PFRDA has specified the minimum contribution that is to be made in a financial year for each type of NPS account. Further, you are required to make your first contribution at the time of applying for registration with a Point of Presence (POP).

Additionally, the following conditions apply for each of the below accounts.

Tier I:
Minimum amount per contribution - Rs. 500 /-
Minimum contribution per year - Rs. 6,000/

Tier II:
Minimum amount at the time of account opening - Rs. 1,000/-
Minimum Amount per contribution - Rs. 250/-
Minimum Balance to be maintained at the end of the Financial Year - Rs. 2,000/-

You may decide on the frequency of your payments during the year as per your convenience. Further, you may also contribute the entire minimum contribution amount as detailed above at the time of registration itself.

10. Will the government also contribute anything to my NPS account?

No. The Government will not be making any contribution to your NPS account.
The Government of India may however, make contributions to the accounts of NPS account holders who opt for Swavalamban scheme subject to conditions stated in Swavalamban scheme. (The details of the Swavalamban scheme is out of scope for this article and we shall look into it in future)

11. What will happen if I do not make the minimum contribution during any financial year?

If you do not make your minimum contribution during any financial year, your account would go into “Defaulted” status.

In case of a default:

You will have to pay a default penalty of Rs. 100 per year of default and further CRA will mark your NPS account as dormant on the last date of that financial year.
To reactivate your account, you will have to pay the aggregate of the outstanding amount of the minimum contribution due for each year that your account is dormant and the applicable penalty amount per year. For instance, if your account has become dormant due to non payment of minimum contribution and you have already contributed say Rs. 3000/- during the year to your NPS account. Now, to reactivate your account, you will have to contribute the outstanding minimum contribution ie Rs. 6,000/- less Rs. 3000/- = Rs. 3000/- plus penalty of Rs. 100/-

A dormant account shall be closed when the value falls to zero.

The fee structure may change as may be decided by the PFRDA/ NPS Trust from time to time.

12. Is there any maximum age limit for making further contribution to NPS Tier I Account?

Yes. You can make contribution in your NPS accounts only till you have not completed the age of 60 years. After attaining 60 years of age, you will not be permitted to make further contributions to the NPS accounts.

13. Can I transfer my savings amount from NPS Tier II account to NPS Tier I account or vice versa?

No. You cannot transfer savings from one NPS account to the other.

14. How do I pay the charges or fees applicable to my NPS transactions?

The charges applicable on your NPS transactions and service tax amount payable thereon shall be deducted from your contribution amount and the balance amount will be invested in your NPS account.

Note: Details of the fees payable for investments can be found in the NPS offer document. This fees are subject to change from time to time by the PFRDA and will be intimated to the investors.

15. How do I select the Pension Fund Manager for my NPS savings?

You can select your Pension Fund Manager at the time of applying for the NPS Scheme. The list of available fund managers is available in my previous article and you can refer to it by clicking here

16. Can I select more than one PFM to manage my savings?

No. You can select only one PFM.

17. What is meant by Investment Choice?

Investment Choice refers to the feature by which the subscriber specifies the manner in which his contribution is to be invested. The contributions made by you towards the NPS account shall be invested by the Pension Fund Manager based on the asset class allocation given by you, and the value of the pension corpus shall be totally based on the NAV of the schemes. You can choose, equities or government securities etc. Details of the different investment choices can be seen in the NPS offer document (And in the next question… Did you think I will let you search for it )

18. What are the various investment choices available in NPS?

The following two investment choices are available in NPS:

(I) Active Choice - Individual Funds (Asset class E, Asset class C and Asset class G) and
(II) Auto Choice - Lifecycle fund

In Active choice, you have the option to actively decide as to how your NPS Pension wealth is to be invested in the following three asset classes:

Asset Class E - investments in equity market instruments
Asset Class C - investments in fixed income instruments other than Government securities
Asset Class G - Investments in Government securities

You will be able to choose from the below-mentioned basket of investment choices:

Equity (Asset Class "E") with a maximum asset allocation of 50% and remaining 50% which can be allocated from Asset Class C and/or Asset Class G

Fixed Income Instruments other than Government Securities (Asset Class "C") with maximum asset allocation of 100% (if allocated singly)

Investment in Government Securities (Asset Class "G") with maximum asset allocation of 100% (if allocated singly)

The overall asset class allocation under the 'Active Choice' option should be equal to 100%

In the Auto Choice option, your funds will be invested across various asset classes in a lifecycle fund as per a pre defined portfolio wherein the Pension Fund Manager shall invest your contribution based on the asset allocation table formulated by PFRDA (based on your age group).

19. Can I select both investment choices when investing in NPS?

No. You have to select either Active Choice or Auto Choice as your option when making investments under NPS. You cannot choose both…

20. Can I change my investment choice?

Yes, you can change your Investment Option [Active or Auto]. After all, it’s your money and you can choose how it is invested.

However, these changes can be made only during the period as specified by CRA / PFRDA. PFRDA will announce the period (from and to dates) during which you can make the said changes.

21. What rate of return will my contributions earn?

There is no guaranteed or suggested rate of returns. The returns earned by your investment would depend on the type of assets you chose to invest and the market performance.

The PFM will invest your savings in a scheme of your choice. Remember that your investment allocation is one of the most important factors affecting the growth of your pension wealth. The rate of return earned by your contribution depends on the return provided by the asset classes you choose to invest in viz equity instruments, fixed income instruments , government securities.

The returns earned by the PFM on the scheme selected by you will be credited to your account.

22. Can I register for NPS without indicating any investment option?

No. You will not be able to register for NPS, unless you have indicated your Investment choice.

23. What is meant by Life Cycle fund in the Auto Choice option?

NPS offers an easy investment option, called "Auto Choice", to assist those customers who do not have the required knowledge to manage their NPS investments.

Under this Option, the investments will be made in a life cycle fund whereby the allocation across various assets will be defined as per your age and will be readjusted as you grow older. When you are younger a higher portion of your funds will be invested in equities and as you grow older, the exposure to equities will be reduced and the exposure to debt instruments will be increased.

24. Can I change the Pension Fund Manager for my pension savings?

Yes, you can change your Pension Fund Manager.

However, as for question 20, this change can be done only in specific timeframe and not all the time.

25. Can I have a different Pension Fund Manager and Investment Option for my Tier I and Tier II account?

Yes. You may select different PFMs and Investment Options for your NPS Tier I and Tier II accounts.

26. Who are the Annuity Service Provider for NPS accounts?

PFRDA is in process of appointing the Annuity Service Provider(s) for the NPS accounts. Upon appointment of the same, you will be able to select any Annuity Service Provider for your account as per your choice at the time of withdrawal of contribution from your NPS Tier I account or on attaining 60 years of age.

As of now, they are not yet appointed/finalized.

27. Where can I view my unit holdings held in the NPS account?

You can view your unit holdings by logging on to the CRA Website. using the IPIN provided by CRA.

28. Will I receive a transaction statement on allotment of units in my NPS account?

Yes. An annual statement containing details of your unit holdings will be issued by CRA to your registered address within 3 months of the end of every financial year.

29. Are there any conditions / formalities to be completed for withdrawing money from my NPS Tier I account?

Yes. Following are the conditions stipulated by PFRDA for withdrawing funds from the NPS Tier I account:

On attaining age of 60 years and upto 70 years of age

On exit, you would be required to compulsorily invest atleast 40 % of your accumulated savings (pension wealth) to purchase a life annuity from any IRDA - regulated life insurance company.

You may choose to purchase an annuity for an amount greater than 40%. The remaining 60 % of your pension wealth can either be withdrawn in lump sum on attaining the age of 60 or in a phased manner, between age 60 and 70, at the option of the subscriber.

In case you opt for phased withdrawal, please note:
1. Minimum 10% of the pension wealth should be withdrawn every year
2. Any amount lying to the credit at the age 70 should be compulsorily withdrawn in lumpsum

Death due to any cause In such an unfortunate event, option will be available to the nominee to receive 100% of the NPS pension wealth in lump sum. However, if the nominee wishes to continue with the NPS, he/she will have to subscribe to NPS individually after following due formalities.

Update - As of 12th June 2013:

As per some latest developments 60% of your corpus can be withdrawn in One Lumpsum. You need not do the phased withdrawal as explained above. I am retaining this old answer as well just to show how the NPS policies change over time to benefit us...

30. What will happen to my savings if I decide to retire before age 60?

To withdraw from your Tier I account at anytime before 60 years of age, you would be required to invest atleast 80% of your pension wealth to purchase a life annuity from any IRDA - regulated life insurance company. You may withdraw the remaining 20% of your pension wealth as a lumpsum.

31. Can I appoint nominees for the NPS Tier I Account?

Yes. You can appoint upto 3 nominees for your NPS Tier I account.

You are required to specify the percentage of your saving that you wish to allocate to each nominee. The share percentage across all nominees should collectively sum up to 100%.

32. I have not made any nomination at the time of registration. Can I nominate subsequently?

If you have not made the nomination to your NPS account at the time of registration, you can do the same after the allotment of PRAN.

33. Are there any charges for making a nomination?

If you are making the nomination at the time of registering for PRAN, no charges will be levied to you.

However, a subsequent request for nomination updation would be considered as a service request and you will be charged an amount of Rs. 20/- plus applicable service tax for each request.

34. What is the transmission process to be followed by a nominee in case of death of the NPS account holder?

Incase of the death of the NPS account holder, the nominee(s) may opt to receive 100% of the NPS pension wealth of the deceased NPS account holder in lump sum or may continue with NPS .

In case the nominee (s) opt to withdraw the pension wealth, the nominee (s) are required to submit the withdrawal request to CRA directly with the supporting documents specified in the withdrawal request form.

However, if the nominee wishes to continue with the NPS, he/she will have to subscribe to NPS individually after following due account opening formalities.

35. What is the transmission process in case of death of NPS account holder who has not selected a nominee?

It is advisable that the NPS subscribers indicate their nominee. CRA is in the process of defining the procedure for transmission in case of NPS account holders who have not selected a nominee.

36. Can I raise my queries or complaints directly with CRA?

Yes. The NPS also has a multi layered Grievance Redressal Mechanism which is easily accessible, simple, quick, fair, responsive & effective. You can register your grievance / compliant by calling at the CRA call centre or by registering the grievance on

You will have to authenticate yourself through the use of T-PIN (in case of call centre) /I-PIN (while registering on the site) allotted to you.

On successful registration of your grievance, a token number will be allotted to you for all future references.

37. How can I track the status of resolution of my grievance that I have registered with CRA?

You can check the resolution status of your grievance by logging in to the CRA website

If you have raised your grievance through CRA, you may contact the CRA Call Center and enquire about the resolution of your grievance by mentioning the token number. You can also raise reminder through any one of the modes mentioned above by specifying the original token number issued.

38. What can I do if I do not get a response from the CRA?

If you do not receive any response with in 30 days or are not satisfied with the resolution provided by CRA, you can apply to the Grievance Redressal Cell (GRC) of PFRDA

Grievance received by the GRC, directly from the subscribers only shall be entertained. GRC shall not entertain any complaints written on behalf of the subscribers by advocates, agents or third parties unless formally authorized by the subscriber.

Complete address of the GRC of PFRDA is:

Grievance Redressal Cell
Pension Fund Regulatory and Development Authority
1st Floor, ICADR Building, Plot No. 6, Vasant Kunj,
Institutional Area, Phase - II, New Delhi - 110070,
Tel: 011-26897948-49, FAX: 011-26892417,

Hope this article was able to answer most of your queries related to the NPS. If you have any further queries, don't hesitate to leave a comment and I will see what I can do 

Happy Retirement!!!


  1. Thansk for the Info Anand. I would like to know how much I will get post retirement. I am looking at the benefits of susbscribing to NPS.


  2. Thanks for the Info Anand.

    i would like to know during the time of retirement how much I will get in my hands. That seems to be unclear in NPS.


  3. @ Suby

    There are many benefits of the NPS as outlined in the article but, there is no guarantee as to how much you will get during retirement. It would depend on:

    1. How much you invest every year
    2. What kind of fund you choose - equity oriented or debt oriented (Equity oriented funds would give you better returns than debt oriented)
    3. How the equity and debt markets perform

    So predicting the return would be very difficult :)

  4. Thanks Anand...
    Good Work & Really Helpful...

  5. Very good & detailed article Anand. Thanks.
    Regarding what to expect at the time of retirement, I would suggest to create scenarios like:
    1. 30yrs - Investing 10K PA in tier 1 & 5K PA in tier 2 - Opting for 'E'
    2. 30yrs - Investing 10K PA in tier 1 & 5K PA in tier 2 - Opting for 'C'
    3. 35yrs - Investing 13K PA in tier 1 & 7K PA in tier 2 - Opting for Auto (LifeStyle option)
    etc. I know it's tedious & time consuming but, will help visualize the returns to some extent.

  6. Whats are the merits & demerits in investing the money in Tier 1 account without opening a Tier 2 account ?

  7. @ DV:
    Merits of Tier 1: You can save a corpus for retirement
    Demerits of Tier 1: You cannot withdraw more than 20% of the money in it as cash at one time

    Merits of Tier 2: You can withdraw the money anytime you want
    Demerits of Tier 2: If you are impulsive and like spending money, tier 2 will only influence you to spend more and not save money

  8. Dear Anand,
    I work for a government hospital and around 7000 is debited from my salary every month towards NPS. however I have never received any letter notifying me about my E-TIN or PRAN. Who should I contact?
    Also, according to you which is better- the old system of lifetime pension or the new NPS scheme?

  9. @Tinki

    Pls Refer to questions 36 and beyond to raise your grievance

  10. Gud work Anand. I heard last year reliance gave 24%, sbi gave 16%....Is it true?

  11. @ Hemant

    I am not really sure. considering the overall market movement in the past one year, that looks a bit on the higher side. around 10-12% would've been a realistic number. anyways i will try to dig up more info to see how they performed and if i get that info, i will surely post it here...

  12. hi anand,this article is really helpful.small question for u.if i invest per month 1000rs for 35yrs how much amount i will get ?Opting for Auto (LifeStyle option).

  13. If you invest that kind of money for 35 years, you can expect returns of approx 10 lakhs or maybe even more - this is only if you invest every month without fail and the stock market performs consistently

  14. If I have to 'sell" the NPS to the driver we employ, what's the one advantage it has over other investment schemes ?

  15. @Priya
    You can tell him that the pension scheme is run by the government and hence the safety of the money invested is at the highest level.

    Note that the government is not responsible for the money lost if invested in the stock market, but whatever is your balance in the account is guaranteed by the government

  16. Hi Anand,

    If I open NPS account now and next year DTC comes in and NPS comes under EEE then what will be the impact on my account? i.e. will my NPS be considered for EEE tax benefit or I'll not be given the tax benefits during maturity? Any idea on this will be helpful, else I can wait till the DTC comes in.


  17. @ Bibek Panda

    Not much clarity is available as of now about the DTC for NPS. If there is any development, it will be posted in this blog. Keep looking out for newer posts for more info.


  18. can you comment on the authenticity of the statement in this article

  19. @ Subbaiya

    I think this is true and the Government has proposed this to be effective from 1st April, 2012 and will be applicable to the assessment year 2012-13 (for the income earned in the financial year 2011-12) and subsequent years.

    It will be a non-taxable income under the head “Profits and gains of business or profession” as long as it is not more than 10% of the persons total salary.

    However, it all depends on whether your employer is willing to do it.


  20. Hello dear...
    1. It is required to invest minimum 40%of your accumulated savings (pension wealth) to purchase a life annuity from any IRDA-regulated life insurance company. Does this means that this purschased insurance company will provide pension of that 40%. In that case pension in hand will be very less, what about than of remaining 60%? Plz describe & clerify this point.

    2. In today date, current status if i go for Auto choice, which one will u suggest PFM for about tier 1 & 2 which can give good return? plz suggest.

    3. Is PPF is better than NPS?

    1. Hi Anonymous
      The choice is yours. The minimum is 40% and you can buy annuity for as much as you want. Read this article - - it covers more details about the NPS

      2. See to know about fund performance

      3. PPF is not a pension scheme. It is just an investment product where you get all the money out at maturity. NPS is a pension scheme. So, there is a huge difference


    2. Dear anand,
      Thanks for above reply, but if i buy annuity at age of 60yrs frm any life insurance company then at that time, the charges detected frm my annuity will more,
      then what is so good to go for nps now , i think its rather better to go directly go for life insurance company pension plan now ? what do u say?
      Which is best pension plan other than nps?

  21. i am employed in a central government aided institution from 2009 onwards and as i fall under new CP scheme and my institution didn't implemented the scheme properly from the initial stages, they didn't taken the employees contribution for the two and half years, and now they want to recover the amount for the period of 2009 to 2011 from me now which is about 83,000/- with in a time frame of 24 months, and i am not in a situation to face this extra burden now. so my question is:
    1. is it mandatory to recover the previous dues of CPF's employee's 10% contribution from the employee by the employer?
    I am asking this question because some were i read that it is not mandatory for the employee to give the previous dues of CPF's employees contribution but for the employer it is mandatory.
    i hope you can clear my doubt with the support of proper documents references.

    1. Hi Anonymous,
      I have never heard of any cases like this and so, currently I do not know the answer for this question. I believe you are referring to employee provident fund (EPF) in India? Is that so?

      if your employer did not contribute EPF for 2 years, the MD or CEO or Chairman whoever heads the organization will be in jail by now.

      anyways, if the old dues are to be recovered, the employer usually will be asked to pay the amount in full and they will give you time (one or two years) to repay the amount in parts which is what i believe is happening now in your case.

      In case I find an answer to this question, I will post an answer here.


  22. Hi Anand,
    Thanks for the detailed article. I was employed in a PSU for a short while as a result of which an NPS account was opened by default. Now I've shifted to the private sector and the NPS becomes optional. What is your suggestion - to close the NPS or somehow keep it going? Things are already confusing with EPF, now to separately invest in this AND remember it when I'm 60 (I'm 28 now :D), I can't even think of it.
    What's your take?


    1. Hi Kaushik,
      NPS Schemes have performed really well in the past few years and hence keeping them open would be a good idea. Yes, I agree that things are confusing with EPF and NPS as well as the many other investments you may keep but at the end of the day, all these are to help you when you retire. So, the more the corpus you accumulate the better it is...

      Best of luck

  23. Replies
    1. You are welcome Kaushik... Considering that you are only 28, you still have a very long way to go to retire and should do some good planning to retire a rich guy...

      The series on Retirement planning will help you with that. Check it out -


  24. Thanks Anand.
    Planning to go for NPS. Now am 33.
    Which is the good PoP now and i understand from one of the PoP (South Indian Bank) that they have only 4 out of the 7 fund managers to select from. Can u please throw some light on which fund manager would be the best choice and can we change them year on year.

    1. Hi Rajaram,
      fund managers like Kotak and ICICI have given good returns and I would assume you would have them as options. Anyways ask your PoP about a returns comparison between these 7 fund managers and try to choose one that is performing in the most consistent manner.

      check out:

      This article compares returns as of last year which can give you an indicative idea.


  25. Hello sir i want to ask how can i close my nps account, and can i open it again i.e. second time (new one)

    1. The account would be closed under following circumstances: death, account value reduces to zero and change in citizenship status.

      This is not a bank account that you close and open as you please. You cannot withdraw until you retire so, technically the second option too is ruled out if you started investing into your NPS Account.

  26. Hi Anand,

    Thanks for Detailed information. But I have few doubts. Please help me with the answers. I tried PFRDA help desk but resulted in futile. Your help would be appreciated if I get the correct answers.

    I was working with a Pvt Ltd company where I opened my NPS account ICICI as Fund Manager. Employer used to deposit 10% of my salary into NPS.


    1. Having said that, I left the organization where I opened my account. So My contributions to that Account stopped. My new organization is not providing such opportunity to me. So i thought I will make my own contributions to my Tier I account. Today I deposited 6K in ICICI bank as they are my Fund Manager. They accepted It.

    I got a doubt that, Can we deposit by Cash directly into Tier I account? Do I need to do Inter Shift or some thing. Please help me. I am worried on the entire money which may go in vain.

    2. Can my Tier I account be changed to Tier II account? Or do I need to open Tier II account separately.

    3. Some people advised me to go to bank and change the account to bank directly so that you can deposit in it. I could understand this statement. I want to know how can I make my contributions to NPS with out halting it.

    Thanks in Advance. Your help is appreciated.

    1. Anonymous - See answers below:

      1. Yes, you can. If you have doubts, get in touch with the customer care/help desk and ask them to convert your NPS Account into a regular individual owned NPS Account. Dont worry, the money you have contributed will not go anywhere. IT is yours
      2. No, it cannot be changed
      3. I think what they mean is to convert your NPS Accont into a regular/individual owned NPS Account. that way you can link your savings account to the NPS Acc and make contributions directly.

      Hope this helped.


  27. Hai Anand,

    I am working in one of the public sector banks , and currently I am being covered under NPS . My doubt is , I prefer to open an PPF account in SBI, Is it possible to open an PPF account since I am covered under NPS

    1. Yes you can open. There are no such restrictions to open a PPF Account.

  28. how can i change nominee in my nps account?

    1. Just contact customer service and request them to help you change the nominee. They will give you the requisite forms and you can fill it up and change your nominee

  29. I planed to invest in NPS, and want to know some points before join. I also try to discussed with POP-SP near by me, which is PNB, but they are not able to describe me a lot as they also unaware about this. So please help and guide me..
    1. How to choose PFM for NPS.
    2. How much amount is needed to open an a/c. [POP-SP told me that 6000/- is Initial amount to open]
    3. Is Tier-II A/c is necessary to open.
    4. What about monthly investment i.e. Can it be fixed or variable. {Means i have decided to invest 1500/- monthly, Can i change this in feature like 1000/-
    or 2000/- means variable investments]

    Please advice
    Thanks in advance

    1. Sunil - See answers

      1. Its your choice. You can choose any of the available PFM's and the funds will be managed by them.
      2. Yes, thats right
      3. Your choice
      4. Prefer to keep the amount monthly as a fixed amount so that you can do something like ECS. If you vary the amount - you will need to drop a cheque or make a separate funds transfer each month. You can change that amount anytime you want. Thats your decision

  30. I am working in a PSB and have a valid PRAN. I have resigned from the firm and submitted request to withdraw the existing account. Later if I get selected in another firm where NPS is mandatory can I get a new account( new PRAN).

    1. I dont think so. PRAN Stands for Permanent Retirement Account Number. In case you get selected into another firm, you may have to reuse the existing PRAN. But, to be safe - pls check with the NPS officials

  31. How i can know the present position of my withdrawal & pension?(It always ensured that you will get pension in your account immediately after retirement but i retired on 31 Jan 2014 nothing is received after five month.)
    Sub:- Present position of withdrawal on superannuation in respect of
    Sh Amarjit Singh Pran No 110010335513
    1 Withdrawal request for the subject PRAN no was farwarded by Area Account office (WC) Jalandhar Cantt Vide Their Letter No P/III/310/NPS/Retirement Dated 24 Mar 2014.(copy attached)
    2 Nothing is received till date. You are requested to send me withdrawal Acknowledgement No for checking position on line.
    3 An early action is requested.
    Thanking You

    1. Mr. Amarjit - I am not the best person to help you here. You need to contact your employer and request them to help you with the process. IF that does not work, use RTI To find out where exactly your withdrawal request is stuck.

  32. Nazir Abdul GafforAugust 7, 2014 at 5:12 PM

    How do i change the nominee share %

    1. contact your point of presence (pop) bank and ask them for the nominee update form and use the same to change the % share

  33. Thanks Anand for useful post. I had few question though if could answer them will be great.

    1. How does the investment related to class E(Equity) is invested. Is that directly done by the PFM only or we have any options to choose the shares or something like that? And also can we choose more than PFM.
    2.Can Nominee be changed at later point of time?
    3.Do we need to have a Demat account for this? If yes can we use the one which we already have?
    4. Can I opt for only Tier 2 account?
    Thanks in advance

    1. Hi Gaurav, Answers for you
      1. The amount that is collected is invested in equities by the fund manager. It works more or less like how a mutual fund works
      2. Yes, its your account. you can chance nominee any time you want
      3. No, not required. I think ICICI has an option to invest in NPS online using your existing demat account. Others - am not sure
      4. No, i dont think so. you will need a tier 1 acc in order to have a tier 2

  34. The union budget 2015 has provided for additional RS 50,000/- under section 80CCD . Is this additional 50 thousand is over limit of RS 1.5 lac that is allowed under 80 C. ??
    I am a govt employee who is not covered by NPS as I joined govt service before 2004. I am contributing to provident fund. Can I open NPS account ? and will I get tax exemption by contributing RS 50 thousand in NPS ???

    1. Yes, people who are contributing to PF can also open an NPS Account. To learn more about the tax benefits you can avail by contributing to NPS - check out my book here:

      To answer your question, yes 80CCD is over and above the 80C limits. You will find more details in my book

  35. I am cover under old pension scheme, as i joined state govt job before 2004. Can I open account under National Pension Scheme as Individual and avail tax benefit of rs. 50,000 under 80CCD (1B). Will this violet any clause /rule as I am already covered under old pension by state govt.

    1. As a Government Employee I dont think you are eligible to open an NPS Account.

  36. Hi Anand,

    Very good information in your blog, I'm NRI planning to opt for National pension scheme, Could you please help which fund i need to select and % for govt/corporate/equity? in Tier1? considering from now till next 30 years.

    I appreciate your help.

    1. Hi Santosh - sorry, I do not provide personalised investment advise through comments section. If interested, reach me via email at


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