INSUBCONTINENT EXCLUSIVE:
SBI National Pension System (NPS): SBI provides a standing instruction facility to its customersSBI or State Bank of India offers an auto
debit facility for a customer to make contributions to his or her National Pension System (NPS) account
This was said by the country's largest bank, SBI, on microblogging site Twitter
NPS - which has no fixed rate of interest - offers market-linked investment return with the option of making adjustments in portfolio
While making an investment in NPS, an individual can design a portfolio of his or her choice by entering preference for exposure in asset
classes such as equity, corporate debt and government securities
SBI's auto-debit - or auto withdrawal - facility enables the user to instruct the bank to make NPS contributions at regular monthly
intervals, according to SBI
( Planning your retirement Read about Atal Pension Scheme)Types of NPS accountsNPS offers two types of accounts: Tier 1 and Tier 2
While the Tier 1 NPS account is strictly a pension account which doesn't allow withdrawals, the Tier 2 account - known as investment account
The Tier 1 NPS account offers tax benefits while the Tier 2 NPS account doesn't offer any such benefit.An NPS account can be opened by
individuals between 18 and 65 years of age.Choice of investmentUnder NPS, the investor gets to decide where to put the money
That means the subscriber can decide his preferred weightage in asset classes such as equity funds and government securities.SBI's auto
investor to park funds in mutual funds by paying a sum of money at equal intervals
Interested subscribers can register for standing instruction (auto debit) - to have the bank process their monthly NPS contributions -
either in online or offline modes
While registering for the auto debit facility online, the user is required to access the 'NPS Contribution' option available on SBI's
internet banking portal - onlinesbi.com
like:The form - to enroll for an NPS account at a registered SBI branch - can be downloaded and printed through a link provided by the
bank.And now, the cost.The investor is required to bear the following costs for taking up registration or performing certain related
tasks.Type of ServiceService charges to be paid to the Point of Presence (POP) by the Subscriber (excluding GST)Initial Subscriber
Registration/per subscriberRs 200Initial Contribution amount / per subscriberAd valorem 0.25% of the contribution amount (Minimum: Rs 20;
maximum: Rs 25,000)Subsequent Contribution Transaction Charge/ per subscriberAd valorem 0.25% of the contribution amount (Minimum: Rs 20;
maximum: Rs 25,000)Any other transaction not involving a contribution from subscriber/ per subscriberRs
20PersistencyRs 50 per annum (only for NPS- All citizen model) - recovered through cancellation of units(Source: bank.sbi)These charges,
applicable for registration of an NPS account or performing a transaction through a bank branch or a point of presence (PoP), exclude
applicable taxes, according to SBI
The fee structure may change from time to time as may be decided by pension regulator PFRDA, State Bank of India mentions on its portal.
