INSUBCONTINENT EXCLUSIVE:
Under NPS, an exit is defined as closure of individual pension account of the subscriber.National Pension System (NPS), a
government-sponsored retirement planning instrument, gives the investor the option to set preferred allocation to different asset classes,
such as government bonds, equity market instruments and corporate debt
website - npscra.nsdl.co.in
NSDL (National Securities Depository Limited) is the Central Recordkeeping Agency (CRA) for National Pension System (NPS)
Each employee is identified by a unique number and has a separate Permanent Retirement Account Number (PRAN).How to open NPS accountAn NPS
account can be opened by a citizen of 18-65 years of age in two modes: online and offline
The subscriber can either apply for an NPS account by visiting a Point of Presence (PoP), or do it online through the e-NPS website-
On the other hand, Tier 2 NPS account - known as investment account - is a voluntary saving account associated with the PRAN
Tier II offers greater flexibility in terms of withdrawal, according to NSDL.Exit/withdrawal rule of NPSUnder NPS, an exit is defined as
closure of individual pension account of the subscriber
attaining 60 years of age, at least 80 per cent of the accumulated pension wealth of the subscriber has to be utilized for purchase of an
annuity, providing the monthly pension to the subscriber and the balance is paid as a lump sum to the subscriber, according to NSDL.In case
if the total accumulated corpus in the NPS account is less than Rs 2 lakh, the subscriber can opt for a 100 per cent lump sum withdrawal,
upon attaining 60 years of age
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
In this case, the remainder is paid as lump sum to the subscriber.In case of death of the subscriber, the nominee gets the option to receive
100 per cent of the NPS corpus in lump sum
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 NSDL.Get Breaking news, live coverage, and Latest News from India and around the world on
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