INSUBCONTINENT EXCLUSIVE:
NPS was originally launched for government employees in 2004 and extended to all citizens in 2009National Pension System (NPS) is a
government-sponsored retirement planning instrument
Regulated by the Pension Fund Regulatory and Development Authority (PFRDA), NPS enables the subscriber to set his or her own choice for fund
allocation to different asset classes, such as government securities, equity market instruments, corporate debt and alternative investment
exit from an account under certain conditions, according to pension regulator PFRDA's website - pfrda.org.in
accumulated corpus in the NPS account is less than Rs 2 lakh, the subscriber may opt for a 100 per cent lump sum withdrawal, according to
This means the subscriber can withdraw the entire sum if the amount accumulated is less than Rs 2 lakh.In other cases, at least 40 per cent
of the accumulated corpus needs to be utilized for purchase of an annuity scheme, providing a monthly pension to the subscriber
transaction charges and other key details)Before attaining 60 years of ageThe subscriber is required to have completed 10 years in NPS to be
eligible for an exit before attaining the age of 60, according to PFRDA
In other words, an exit from the NPS account is allowed only if the account is held for at least 10 years
In this case, at least 80 per cent of the accumulated corpus needs to be used for purchase of an annuity scheme providing a monthly pension
to the subscriber, and the remainder paid as a lump sum, according to the regulator.( All you need to know about Atal pension scheme)A 100
per cent lump sum withdrawal from the NPS account is allowed in this case only if the total corpus is less than Rs 1 lakh, according to the
This means that the whole amount can be withdrawn by the NPS subscriber before turning 60 only if the corpus is less than Rs 1 lakh.Death of
subscriberIn case of death of the subscriber, the nominee gets the option to receive 100 per cent of the NPS corpus in lump sum, according
The nominee can also choose to continue with the NPS account, by subscribing to NPS individually after following due KYC (know your
customer) procedure, according to the regulator's website.Get the latest election news, live updates and election schedule for Lok Sabha
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