1. What is National Pension System?

The National Pension System (NPS) is a new voluntary contributory pension scheme

introduced by the Central Government through Pension Fund Regulatory and

Development Authority (PFRDA) to promote old age income security.

It is a defined contribution pension system which is being offered on a voluntary basis

to all citizens of India other than government employees covered by NPS. PFRDA has

also introduced Corporate National Pension System model (under existing All Citizen of India

Model (i.e. commonly known as “UOS NPS model”)) where -in the Corporate can get itself

register under the System with CRA through the recognized POP. As per the Corporate NPS

model the Corporate is free to offer the NPS system to all or select employees (i.e. based on

certain criteria - above a certain grade). Under the Corporate NPS model, the Corporate can

transfer Employee’s contribution (i.e. deduction from employee’s salary) to Employee’s NPS

Tier I account and it also has an option to contribute over and above the employee’s NPS

contribution amount.

Under the NPS, individuals can open a personal retirement account with the government

through PFRDA and can set aside and save a pension corpus during their work life to

meet financial needs after retirement. These contributions earn returns depending on

the investment option selected by the individual.

At the time of withdrawal, the subscribers have to invest a portion of their accumulated

pension wealth under the NPS to purchase a life annuity from an IRDA regulated life

insurance company and the balance may be withdrawn in lumpsum. The amount and the

time period after which withdrawals can be made are subject to certain conditions (as

explained in FAQs).

To view the NPS offer document visit

https://www.npscra.nsdl.co.in/offer-documents.php

2. What is the architecture of NPS? Who are the different entities involved? Following are

the Intermediaries in the NPS system:

Pension Fund Regulatory and Development Authority(PFRDA) Central Record-keeping Agency (CRA) National Securities Depository Limited (NSDL) has been appointed as the CRA for NPS

by PFRDA. Pension Funds (PFs)/Pension Fund Managers (PFM) Annuity Service Provider (ASP) Trust & Trustee Bank (TB) Point of Presence (PoP) Custodian

· Description of the above entities :

· Pension Fund Regulatory and Development Authority (PFRDA)

PFRDA is the regulator for the NPS. PFRDA is responsible for registration of various

intermediaries in the system such as Central Record Keeping Agency (CRA), Pension Funds,

Custodians, NPS Trustee Bank, etc. PFRDA shall also monitor the performance of the

various intermediaries and ensure that all stakeholders comply with the

guidelines/regulations issued by PFRDA from time to time.

· Central Record-keeping Agency (CRA)

The record-keeping, administration and customer service functions for all subscribers of

the National Pension System will be centralized and performed by the CRA. The CRA

shall, on the basis of instructions received from subscribers, transmit such instructions

to the appointed Pension Funds on a regular basis. The CRA will also provide

periodic, consolidated PRAN statements to each subscriber. Currently National Securities

Depository Ltd (NSDL) is CRA.

· Pension Funds (PFs)/Pension Fund Managers (PFMs)

Appointed PFs are responsible for managing the retirement savings of subscribers

under the NPS. The PFRDA has appointed a limited number of leading professional firms to

act as PFMs. Subscribers contribution is given to these PFMs for further investment.

The PFMs are required to invest strictly in accordance with the guidelines issued by the

government / PFRDA. PFMs would communicate the NAV of each scheme to CRA on a

regular basis.

NPS allows you to choose from any one of the following 7 entities as PF to manage your

pension fund:

1. ICICI Prudential Pension Funds Management Co. Limited

2. HDFC Pension Management Company Limited

3. Kotak Mahindra Pension Fund Limited

4. LIC Pension Fund Ltd

5. Reliance Capital Pension Fund Limited

6. SBI Pension Fund Pvt. Limited

7. UTI Retirement Solutions Limited

· Annuity Service Provider (ASP)

ASPs are responsible for delivering a regular monthly pension to the subscriber if

subscriber has purchased annuity scheme either before attending age of 60 years (subject to lock-in period

of 10 years) or attending the normal retirement age of 60 years or on attending superannuation after

attaining the normal retirement age of 60 years. PFRDA has empanelled the following

seven IRDA approved life insurance companies for providing annuity services to the

subscribers of National Pension System (NPS).

1. Life Insurance Corporation of India

2. SBI Life Insurance Co. Ltd.

3. ICICI Prudential Life Insurance Co. Ltd.

4. Bajaj Allianz Life Insurance Co. Ltd.

5. Star Union Dai-ichi Life Insurance Co. Ltd.

6. Reliance Life Insurance Co. Ltd.

7. HDFC Standard Life Insurance Co. Ltd.

PFRDA / CRA is in process of finalizing the operational guidelines for annuity,. NPS

subscriber can then annuitize the with any of the any Annuity Service Provider as

selected by them either on attaining the 60 years of age or before attaining the age of

60 years subject to 10 years of lock-in.

· Trust & Trustee Bank (TB)

The Trust established under the NPS, is responsible for taking care of the funds under

the NPS and is the registered owner of all NPS assets. The trust holds an account with as

the NPS Trustee Bank, i.e Axis Bank. NPS Trustee Bank facilitates fund transfers across

various entities of NPS system viz. PFM, Annuity Service Providers, subscriber, etc. The

NPS Trust is being administered by the Board of Trustees, as constituted by the PFRDA.

· Point of Presence (PoP)

PoP is the first point of interaction between the voluntary subscriber and the NPS

architecture. The PoP is responsible for performing functions relating to registration of

subscribers, undertaking Know Your Customer (KYC) verification, receiving contributions

and instructions from subscribers and transmission of the same to designated NPS

intermediaries.

· Custodian

The Custodian is responsible for the custody of underlying assets. Custodian is a SEBI

registered Custodial Services providing fulfilling condition on foreign holdings and cross

holdings as Government may prescribe. Current custodian is Stock Holding Corporation of

India (SHCIL)

Please note that the addition or deletion of intermediaries like PFM, POP and ASP is a

continuous process. The latest list of PFMs, POPs and ASPs are available on PFRDA

website - www.pfrda.org.in.

3. 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.

4. 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 and his communication address is an Indian address. Contributions made by NRI are

subject to regulatory requirements as prescribed by RBI and FEMA from time to time.

No t e :

1) Presently, I- Sec is not offering the NPS product to N o n Resident Indians.

2) RBI vide its circular No. RBI/2015-16/216 A.P. (DIR Series) Circular No.24 dated the October 29,

2015 has stated that eligible NRI customer may open / subscribe to NPS account (under PFRDA

regulations) by making contributions through normal banking channel. The subscription amounts shall

be paid by the NRIs either by inward remittance through normal banking channels or out of funds held

in their NRE/FCNR/NRO account. RBI has further stated in the said circular that there shall be no

restriction on repatriation of the annuity/ accumulated savings.

5. 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

6. How do I invest in NPS?

To invest in NPS, you will be required to open an account with a Point of Presence (POP)

and obtain a Permanent Retirement Account Number (PRAN). This is the unique

identification number given to your NPS account. ICICI Securities Limited (I-Sec) is

registered as a Point of Presence (POP) with the PFRDA for offering services pertaining to

opening and operation of NPS accounts.

7. What are the benefits of investing in the NPS?

You may benefit from investing in NPS in the following manner:

1. It is voluntary: You can choose the amount (subject to the minimum annual contribution

amount from second financial year after opening of the NPS account) you want to set aside

and save every year

2. It is simple: All you have to do is to open an account with any one of the

POP and get a PRAN

3. It is flexible: You can choose your own investment option and Pension fund Manager and

see your money grow

4. It is portable: You can operate your account from anywhere in the country, even if you

change your city, job or pension fund manager

5. It is regulated: NPS is regulated by PFRDA, with transparent investment norms and

regular monitoring and performance review of fund managers by NPS trust

8. What are the different types of NPS accounts?

NPS accounts are of two types:

Tier I account: This is a non-withdrawable account wherein you will not be able to

withdraw your funds until you attain the normal retirement age of 60 years. To withdraw

from your Tier I account before 60 years of age, you would be required to invest at least

80% of your pension wealth to purchase a life annuity (subject to eligibility age criteria (if

any) for buying an annuity policy from annuity service providers) from any IRDA - regulated

life insurance company. You may withdraw the remaining 20% of your pension wealth as a

lump sum. (It is allowed to subscriber who have been in NPS for at least 10 years ).

As per PFRDA circular No. PFRDA/2015/24/EXITS/1 dated the October 29, 2015, PFRDA has

given an option to the NPS account holder (on attending the age of 60 years) that he can deferred

his eligible lumpsum amount in maximum ten annual installments up to the age of 70 years or he

can withdraw the entire amount at once by giving 15 days advance notice. If the NPS account

holder has not given any advance deferrement notice then the accumulated pension amount

would be automatically monetized and credited to the NPS account holder bank account upon

attaining the age of 70 years,

Note: The Exit & Withdrawal from NPS Tier I account is governed by PFRDA (Exit &

Withdrawals under National Pension System) Regulations, 2015. Please refer to the FAQ

section below on exit and withdrawal procedure from National Pension System.

Tier II account: To open this account, you should have an active Tier I account. This is

a voluntary savings facility. You will be free to withdraw your savings from this account

whenever you wish.

Note: Government employees are allowed to open standalone NPS Tier II account with any registered

POP. Currently, ICICI Securities is not offering it.

9. 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.

10. 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.

11. Can I invest in NPS through ICICI Securities limited?

Yes. ICICI Securities Limited (I-Sec) is registered as a Point of Presence (POP) with the

PFRDA for offering services pertaining to opening and operation of NPS accounts.

12. How can I apply for the Tier I and Tier II NPS accounts through www.icicidirect.com?

You can open an online Tier I and Tier II account by logging in into your

www.icicidirect.com trading / investment account and visiting the "Subscribe NPS" link on

the NPS page.

Path : Login—Trade & Invest—NPS—Transact—Subscribe NPS

There is a facility available on the www.icicidirect.com for register either for Tier I, Tier

II (provided Tier I is active) and opening of Consolidated Tier I and Tier II account at the time

of opening NPS account.

While registering for the NPS, the minimum subscription amount criteria should be met

for the each type of NPS Tier account.

13. How will I know my PRAN?

After your NPS / Permanent Retirement Account (PRA) is opened, CRA shall intimate you

about your PRAN. I-Sec would also email you the PRAN allotment letter. You will also

receive a Telephone Password (TPIN) and Internet Password (IPIN) directly from CRA. 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

(www.npscra.nsdl.co.in) on a 24 x 7 basis.

14. Will I get a PRAN Card when I open an NPS account through www.icicidirect.com?

No. If you are opening an NPS account by making an online application on

www.icicidirect.com, you will be provided PRAN allotment letter by I-Sec and not the PRAN

Card.

You will have to apply for the PRAN card by submitting Subscriber regi stration

form & necessary KYC documents in hard copy/ physical form by next month el se CRA

shall marked your NPS account a s “Dor mant” ( i .e. deact ivate) a s obtai ning of the

PRAN card from CRA is the manda tory condition imposed by PFRDA . In case ,

your NPS account is marked dormant by CRA in tha t scenar io you sha l submit the

physica l Subscribe r Registration For m along with requ isite KYC documents t o

ICICI Securit i es Limited for onward submit ting the same to CRA for i ssuance o f

PRAN card.

15. Is PRAN card Mandatory?

Based on the recent guidelines issued by PFRDA, PRAN Card has been made mandatory. If

you have not applied for the PRAN Card by the end of the next month of the PRAN

generation, then CRA shall deactivate such accounts. In such an event you will not be able

to place any contribution in your NPS accounts or place any service request (other than

applying for PRAN card), till the accounts are reactivated (through submission of PRAN Card

application)

16. Is there any charges for reactivation after issuance of PRAN card?

Currently CRA is not charging any fee on reactivation of NPS accounts on issuance of the

PRAN card.

17. What is the process for applying for a physical PRAN Card when I open an

NPS account through www.icicidirect.com? Or

What is the process for re - activation of the PRAN marked as deactive due to

PRAN non - issuance?

For applying for the PRAN card you will have to visit the NPS section and click on " Place

Service Request" under services section and take the print out of pre-filled form, affix recent

colour photograph and have to sign wherever applicable within the highlighted box (in BLACK

ink).

Path: Login— Trade & Invest — NPS — Services — Place Service Request —Request for

PRAN card

The duly filled form has to be forwarded to the following address:

ICICI Securities Ltd

Sales Operations Dept

Shree Sawan Knowledge Park,

First Floor, Plot No. D-507, T.Ts Ind Area, M.I.D.C, Turbhe, Opp.

Juinagar Railway Station, Navi Mumbai - 400705

18. How will I know about the status of the PRAN Card application form?

The status of the PRAN Card can be checked from the CRA site.

19. How will I know about the status of my PRAN Number?

You can track the status of your application by logging in to your www.icicidirect.com

account and visiting the "Subscribe NPS" link on the NPS page.

In case your application has been successfully processed, your PRAN will be displayed

under the above link.

In case your application form is rejected by CRA for any reason, the sta tus will be updated

on “My Message”. Further, I-Sec shall also refund to you, your contribution money

together with processing fees and taxes deducted upfront.

20. How can I make contributions into the NPS account through www.icicidirect.com?

To make a contribution to your NPS account, you will need to allocate funds by visiting the

"Modify allocations" link of the NPS page of your www.icicidirect.com account under the

option 'MF, IPO, Insurance, NPS and others'.

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

Yes. PFRDA has specified the minimum annua l contribution a m o u n t that is to be made in

a financial year (applicable from second financial year of subscription of NPS) 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 financial year - Rs. 6,000/

· Minimum number of contributions – 1 per year

Tier II:

· Minimum amount at the time of account opening - Rs. 1,000/-

(Minimum 1 contribution incase account is opened in the last quarter of the financial year)

· Minimum Amount per contribution - Rs. 250/-

Minimum number of contributions: 1 per year

· Minimum Balance to be maintained at the end of the Financial Year - Rs.

2,000/-

Note: The minimum annual contribution amount and minimum number of contribution towards

NPS Tier I and NPS Tier II account and maintaining of Minimum Balance in NPS Tier II account

at the end of financial year is made applicable by PFRDA from second financial year.

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.

22. Can I make contributions to my NPS accounts through the Payment gateway facility on

www.icicidirect.com?

Yes. You can place contribution through Payment gateway from your registered

bank account other than ICICI bank.

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

No. The Government will not be making any contribution to your NPS

account.

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

It is advisable that you make the stipulated contribution on a regular basis in your NPS

account. In case of a default:

1. You will have to bear a default penalty of Rs. 100 and further CRA will mark your NPS account as

dormant on the last date of that financial year.

2. To reactivate the frozen account, the subscriber need to pay a minimum contribution of Rs. 500/-

together with a penalty of Rs. 100/- and Rs.23/- towards POP charges and applibable taxes (i.e. POP

Charges - Rs.20/- ) + Service Tax (14% on POP charges) + Swachh Bharat Cess (0.5% on POP

charges) + Krishi Kalyan Cess (0.5% on POP charges) along with the unfreeze request.

Incase the NPS account holder wants to contribute the minimum contribution amount then the Total

amount will be Rs. 623/- (inclusive of service charges, service tax & cess).

Note: Incase the NPS account holder wants to contribute more than the minimum contribution

amount of Rs.500/- then he / she will have to pay POP Charges and applicable service tax (i.e.

Service Tax, Swachh Bharat Cess, & Krishi Kalyan Cess ) thereon as under:

a) POP Charges: 0.25% of Contribution amount subject to minimum of Rs.20/- and maximum of

Rs.25,000/- PLUS

b) Service Tax 14% on POP charges PLUS

c) Swachh Bharat Cess : 0.5% on POP charges.PLUS

d) Krishi Kalyan Cess : 0.5% on POP charges.

3. To reactivate your account, you need to send the physical form (UOS-S10A -

Application for unfreezing of PRAN under National Pension System ) available on

www.npscra.nsdl.co.in. along with the cheque in name of “ ICICI Securities Ltd NPS Pool“

and amount of Rs. 623/- (incase the NPS account holder is contributing the minimum contribtion

amount) or appropriate amount (as stated in point ii above [i.e. Contribution Amount + Rs.,100/-

penalty + POP charges (Contribution amount * 0.25% subject to minimum of Rs.20/- and maximum

of Rs.25000/-) + Service Tax (14% on POP charges) + Swachh Bharat Cess (0.5% on POP charges)

+ Krishi Kalyan Cess (0.5% on POP charges) and self attested PRAN card copy to following

address:

ICICI Securities Ltd,

NPS Operations Dept,

Shree Sawan Knowledge Park

Ground Floor, Plot No. D-507, T.Ts Ind Area,

M.I.D.C, Turbhe, Opp. Juinagar Railway Station,

Navi Mumbai - 400705

4. 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.

25. 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.

26. Can I transfer my savings amount from NPS Tier II account to NPS Tier I account

or vice versa?

No. Currently you cannot transfer savings from one NPS account to the other as operational

guidelines are awaited. In the meanwhile, subscriber can redeem partial or full amount from Tier

II account. On receipt of the funds in linked ICICI bank account he can place contribution or SIP

in his Tier I account.

27. Are there any charges for making investments in NPS?

Yes. PFRDA has prescribed charges for various services related to the NPS

account. The same are listed as follows:

Intermediary

Service Charge Head Service Method of

Deduction

CRA

Permanent Retirement

Account (PRA)

Opening Charges Rs. 50 Through Cancellation

of units Annual PRA

maintenance cost per

account Rs.190

Charge per transaction Rs. 4

POP(maximum permissible charge for each subscriber)

Initial Subscriber registration & contribution upload

Rs.125 + 0.25% of contribution

(minimum of Rs. 20 and

maximum of Rs. 25,000)

To be collected upfront Subsequent Transaction (Regular Subscriber's contribution)

0.25% of contribution (minimum of Rs. 20 and maximum of Rs. 25,000)

Service Request Charges** Rs. 20

Trustee Bank, Custodian, NPS Trust, and PFM will charge prescribed fees in addition to the

above by way of adjustment in the Net Asset Value (NAV)

*Service Tax and other levies, as applicable, will be levied as per existing laws in addition to

the above charges.

** These include

1. Change in subscriber details

2. Change of investment scheme/ fund manager

3. Processing of withdrawal request

4. Processing of request for subscriber shifting

5. Issuance of printed account statements

6. Any other subscriber services as may be prescribed by PFRDA

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

time.

28. How do I pay the charges applicable to my NPS transactions?

The charges applicable on your NPS transactions and service tax amount payable

thereon shall be deducted from your allocated amount and the balance amount will be

invested in your NPS account.

Please login to your www.icicidirect.com trading / investment account and refer NPS

Service Charges link for further details.

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

You are required to specify your Pension Fund Manager (PFM) at the time of applying for

NPS registration.

You will be required to indicate your preferred PFM out of the 7 PFM identified by PFRDA.

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

No. You can select only one PFM.

Note : You can select same or different PFM for Tier I and Tier II accounts

31. What is the meaning of 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. The NAV of each scheme of the Pension Fund Manager shall be available on the

CRA website, and the link for the same shall be available on www.icicidirect.com too

32. 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 predominantly 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:

a. 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

b. Fixed Income Instruments other than Government Securities (Asset

Class "C") with maximum asset allocation of 100% (if allocated singly)

c. 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).

Please refer offer document for further details

33. 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.

34. Can I change my investment choice?

Yes, you can change your Investment Option [Active or Auto] any time subject to

maximum once in a financial year.

35. What rate of return will my contributions earn?

Your contributions will not earn any specified rate of return.

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.

Kindly refer the NPS offer document for details on the risks associated with your

investments.

You can also visit below mentioned site to view performance of various PFM for different

schemes

http://www.npstrust.org.in/index.php/navreturns/returns

36. 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.

Further, incase you have selected the Active choice option but if you have not indicated the

percentage allocation of your pension wealth across the 3 asset classes or it does not

aggregate to a total of 100%, you will not be able to submit your online NPS registration

application

37. 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. Please refer the offer document for details refer "Auto choice - life cycle fund section".

38. What is the meaning of asset reallocation in the Auto Choice investment option?

If you have opted for Auto Choice, the reallocation of your pension money among the

different asset classes shall take place on your date of birth. All subsequent investments

in your NPS account shall be made as per such revised asset class allocation as stated

in the Lifecycle Fund grid (as defined by PFRDA).

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

Yes, you can change your Pension Fund Manager any time subject to once in a financial

year.

40. 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.

41. Where can I view my unit holdings held in the NPS Tier I and II account? You can view your unit holdings by logging on https://cra-nsdl.com/CRA/ (CRA site) using

the IPIN provided by CRA. You can also view the details of the "Unit Holdings" on NPS page

(SOT) of your www.icicidirect.com trading / investment account.

42. 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.

43. Are there any conditions / formalities to be completed for withdrawing money from

my NPS Tier I account

NPS account holders will have to comply with the regulations stated in PFRDA (exit &

Withdrawals under the National Pension system) Regulations, 2015.

As per the said Regulations, the NPS account holder has an option to exit & withdraw from

National Pension System under the following scenarios viz. i) On attending 60 years of age

or on attending superannuation age and ii) at any time before attending the age of 60 years.

Following are the conditions stipulated by PFRDA for withdrawing funds from the NPS Tier I

account:

Vesting Criteria Benefit On attaining age of 60 years and upto 70 years of age

On exit, you would be required to compulsorily invest at least 40 % of your accumulated savings (pension wealth) to purchase a life annuity from any IRDA - regulated life insurance company. Note: Annuity purchase can also be deferred for maximum period of 3 years at the time of exit.

The remaining pension wealth can be withdrawn in lump sum on attaining the age of 60 y e a r s

N o t e : PFRDA clarification on deferment

of withdrawal of eligible lumpsum

amount: As per PFRDA circular No.

PFRDA/2015/24/EXITS/1 dated the

October 29, 2015, PFRDA has given an

option to the NPS account holder (on

attending the age of 60 years) that he can

deferred his eligible lumpsum amount in

maximum ten annual installments up to

the age of 70 years or he can withdraw

the entire amount at once by giving 15

days advance notice, If the NPS account

holder has not given any advance

deferrement notice then the accumulated

pension amount would be automatically

monetized and credited to the NPS

account holder bank account upon

attaining the age of 70 years,

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

To withdraw from your Tier I account before 60 years of age, you would be required to

invest at least 80% of your pension wealth to purchase a life annuity (subject to fulfillment

of eligibility age criteria (if any) from any IRDA - regulated life insurance company. You

may withdraw the remaining 20% of your pension wealth as a lump sum.

(Note: Premature withdrawal only if subscriber has been in NPS for at least 10 yrs)

Partial Withdrawal :Up to 25% of own contribution for Marriage or Higher education of children or

purchase of house/flat or for prescribed illness (subject to certain conditions) if subscriber has been in NPS

for at least 10 yrs)

45. Who are the Annuity Service Providers for NPS accounts?

Pension Fund Regulatory and Development Authority (PFRDA) has empanelled the

following seven IRDA approved life insurance companies for providing annuity services to

the subscribers of National Pension System (NPS).

1. Life Insurance Corporation of India

2. SBI Life Insurance Co. Ltd.

3. ICICI Prudential Life Insurance Co. Ltd.

4. Bajaj Allianz Life Insurance Co. Ltd.

5. Star Union Dai-ichi Life Insurance Co. Ltd.

6. Reliance Life Insurance Co. Ltd.

7. HDFC Standard Life Insurance Co. Ltd.

Subscribers to the National Pension System (NPS) will now have a choice of selecting the

Annuity Service Providers, from whom they can choose their annuity schemes on their exit

from NPS on attainment of 60 years of age (where-in atleast 40% of the accumulate

amount of NPS Tier I account should be annuitised) or they can opt for the same before

attaining 60 years of age (where-in atleast 80% of the accumulate amount of NPS Tier I

account should be annuitised).

Annuity Service Providers are in process of floating the annuity schemes and

CRA shall be issuing the operational guidelines for the same.

46. Can I register a SIP request for making investment in my NPS account? How will

the SIP request work?

Yes. I-Sec offers you a facility to place a SIP request for making periodical investment in

your NPS Tier I account on www.icicidirect.com.

47. How can I register a SIP request for my NPS investment?

To place a SIP request, you will have to login to your www.icicidirect.com trading/

investment account and select the SIP option displayed on the NPS page.

Here you will be required to specify the following details:

a. Start Date: This is the date on which you want your SIP to start and your contribution to

be given to CRA. (Remember - Your SIP Start Date cannot be the date prior to the date of

your NPS registration)

b. Amount: The amount you wish to invest in each SIP (The minimum amount to register an

NPS SIP is Rs. 500/-)

c. Frequency: The frequency at which you want the SIP investments to be made in your

NPS account (Choose between options - Monthly/Bi-Monthly( once in two months)/Quarterly

If you choose the Bi-Monthly option, after your first investment on the start date, no

investment will be made in the subsequent month. The next SIP date will be in the month

following such subsequent month. Hence, there will always be a gap of a month between

the SIP dates. In Bi-Monthly option, your order is triggered 6 times in a year.

For instance: If you have selected the SIP (Bi-Monthly) option and your start date is

January 5, 2011, your first order will be triggered on the selected date viz January 5, 2011

and your next SIP order will be triggered in March (not February) on the calculated date.

d. Period: Indicate the period during which you would want the periodical NPS

contributions to be placed. The maximum period you can select is 300 months.

Once you have clicked on the final confirmation, the details of the SIP request would be

displayed on the SIP Book page.

Please note that if a SIP trigger is on the 31st and the month has only of 30 days, the

contribution request will be processed on the next business day after the 30th.

48. Can I cancel my SIP request? What is the process for canceling my SIP request?

Yes. You can cancel the SIP request anytime. To cancel your SIP request, you will have to

visit the "SIP order book" page and select cancel option.

49. Can I modify my SIP request? What is the process for modifying the request?

You will not be able to modify a registered SIP request. However, you can cancel the said

SIP request and place a new SIP request as per the modified parameters.

50. I have forgotten to allocate enough funds for my NPS SIP order on the SIP

date. Is my order liable to be rejected?

It is advisable that you allocate sufficient funds under the "MF, IPO, Insurance, NPS and

others" section in your trading account towards your NPS SIP orders.

In case you have not allocated the required amount, I-Sec will place the order only after

checking that sufficient clear funds are available in your linked bank

account. In case clear funds in your linked bank account are not sufficient to place your NPS

SIP order, the entire NPS SIP order would fail.

Please note that NPS SIP order will not be placed for partial amount/quantity. In case

sufficient balance is not available in your account, your entire order will fail.

51. Can I appoint nominees for the NPS Tier I & II Account?

Yes. You have to appoint minimum 1 and maximum up to 3 nominees for your

NPS Tier I & II 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 aggregate to 100%.

Note :

1. Please refer PFRDA guidelines on whom you can nominate to your NPS accounts and when the

subscribers are required to register fresh nominee ( click here - to know more).

2. Same or Different Nominee(s) with same or different share% for NPS Tier I & NPS Tier II allowed.

3. NPS account Holders can change nominee(s) at any time by submitting duly filled UOS-S2 form-

Subscriber detail change form along with self-attested PRAN card

Form is made available by following below mentioned path

Trade & Invest---NPS---Services--Place service request---

select Tier I/Tier II account- Change Nominee request

52. What is the process for making a nomination on www.icicidirect.com?

The process of nomination has been included in the registration process on

www.icicidirect.com. At the time of applying for registration on www.icicidirect.com, the

system will ask you to choose the option for making a nomination.

The online NPS registration process on www.icicidirect.com comprises of 4 steps. In the

first step, you will be asked whether you wish to make a nomination. If you select the

option "Yes", you will be required to provide the details of your nominee such as Name,

Date of Birth, your relationship with the nominee and the percentage allocation of your

accumulated pension savings that you wish the nominee should acquire.

In case you are appointing a minor as your nominee, you will be required to specify the

details of the guardian also.

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

is the process?

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. You will have to visit the "Place Service

Request" link on the NPS page under Services sec tion of your account & download the

physical form UOS-S2 (Request for Change / Correction in Subscriber Master Details and

/ or Re-issue of IPIN/TPIN/PRAN Card) and submit the same to ICICI Securities Limited

at the under mentioned address:

ICICI Securities Ltd.

NPS Operations Department

Shree Sawan Knowledge Park

Plot No. D-507,T.T.C.Ind.Area

MIDC, Navi Mumbai -400705

54. Can I change the Nominees for my NPS Accounts?

Yes. You can change the nominees in your NPS Tier I account at any time after you have

received your PRAN.

To change your nomination, visit the 'Place service requests' link on NPS page of your

www.icicidirect.com trading / investment account.

55. 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.

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

holder?

In case 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 they may opt

for buying annuity from the Annuity Service Provider.

In case the NPS account holder has not register nominees in his NPS account in that

scenario the legal heirs of the NPS account holder will have to obtain legal heir certificate

and they shall also have an option to receive 100% of the NPS pension wealth of the

deceased NPS account holder in lump sum or they may opt for buying annuity from the

Annuity Service Provider.

The nominee(s) or legal heir(s), as the case may be, will have to fill-in Form 303 (in

BLACK INK) and has to submit along with the under mentioned documents to POP:

1. Original Death certificate of NPS account holder (Subscriber).

2. ORIGINAL copy of PRAN card and if the same is not available then the subscriber

has to submit the notarised Affidavit as to the reasons of non-submission of the PRAN

Card.

3. Incase of No Nominee: Certified photocopy of family member's certificate issued by

Executive Magistrate.

4. Legal Heir Certificate (if applicable).

5. Cancelled Cheque or Bank Certificate of the claimant/s and Nominee(s).

6. Pre-signed receipt (signature across on Re.1 Revenue stamp) acknowledging the

receipt of proceed. Kindly note each nominee/legal heir has to pre-sign the receipt.

7. Self certified photo copy of additional Proof of Identity document (PAN card,

Aadhaar, Passport etc) and Proof of Address (PAN card, Aadhaar, Passport etc). (Refer

instruction 4 of the said form).

The nominee(s) / Legal heirs have to visit the nearest office of ICICI Securities Limited and

will have to sign in front of the official and will also have to show the original documents to

the official for verification.

Note: If the subscriber belongs to Corporate NPS Model then the subscriber shall also have

to obtain signature of the Authorised Signatory and affixation of Corporate Rubber stamp.

57. 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 register their nominee(s) in their NPS accounts.

PFRDA has came out exit and withdrawal regulations which shall govern the exit and

withdrawal options from National Pension System. The legal heir(s)/nominee(s) has an an

option to receive 100% of the NPS pension wealth of the deceased NPS account holder in

lump sum or they may opt for buying annuity from the Annuity Service Provider.

The nominee(s) or legal heir(s), as the case may be, will have to fill-in Form 303 (in

BLACK INK) and has to submit along with the under mentioned documents to POP:

1. Original Death certificate of NPS account holder (Subscriber).

2. ORIGINAL copy of PRAN card and if the same is not available then the subscriber has

to submit the notarised Affidavit as to the reasons of non-submission of the PRAN Card.

3. Incase of No Nominee: Certified photocopy of family member's certificate issued by

Executive Magistrate.

4. Legal Heir Certificate (if applicable).

5. Cancelled Cheque or Bank Certificate of the claimant/s and Nominee(s).

6. Pre-signed receipt (signature across on Re.1 Revenue stamp) acknowledging the receipt

of proceed. Kindly note each nominee/legal heir has to pre-sign the receipt.

7. Self certified photo copy of additional Proof of Identity document (PAN card, Aadhaar,

Passport etc) and Proof of Address (PAN card, Aadhaar, Passport etc). (Refer instruction

4 of the said form).

58. How do I place various NPS related service requests on www.icicidirect.com?

You can place a service request by visiting the "Place Service Request" option on the

NPS page under Services section of your www.icicidirect.com trading / investment

account.

59. What is the process for changing the correspondence address and bank account

details for my NPS account?

To change your address in the NPS account, you will have to first update the new address

in your www.icicidirect.com trading /Investment Account. Once the same is done, you

need to send the physical form (UOS-S2 subscriber details change form) available on

www.npscra.nsdl.co.in ,with the attachments (self certified photo copy of the address proof (as

mandated by PFRDA), bank account statements. etc.) to the below address:

ICICI Securities Ltd, NPS Operations Dept,

Shree Sawan Knowledge Park,

Ground Floor, Plot No. D-507, T.Ts Ind Area, M.I.D.C, Turbhe,

Opp. Juinagar Railway Station, Navi Mumbai – 400705

60. How can I raise my queries / complaints for matters relating to my NPS

accounts / savings?

In case of any queries for matters relating to your NPS account(s), please feel free to contact us at our

Customer Care Number which are stated on www.icicidirect.com or you can mail your query to us on

npshelpdesk@icicisecurities.com

For complaints, we request you to refer process as mentioned in our Grievance Redressal Policy. http://content.icicidirect.com/mailimages/Grievance_redressal_policy.pdf

You may also walk in to your nearest ICICIDirect centre to seek clarifications/

express your grievances.

Please ensure that you have mentioned your PRAN in your grievance letter.

61. Can I raise my queries / 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 at toll free telephone number 1-800-

222080 or by registering the grievance on https://cra-nsdl.com.

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.

62. 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 www.npscra.nsdl.co.in

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.

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

If you do not receive any response within 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 as under: 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,

Email: grcpfrda@gmail.com

64. What is Swavalamban scheme?

Swavalamban scheme has been launched by the Government of India to provide a

pension scheme to persons employed in the unorganised sector.

Accordingly, any Indian citizen between the age of 18 to 60 years, working in the

unorganised sector, who have opened National Pension System (NPS) accounts in the year

2010-11 and who fulfills the eligibility criteria laid down by the Government of India can opt

for the Swavalamban scheme also called as "Swavalamban Yojana”.

As per PFRDA circular PFRDA/ 2013/15/POP/1 dated 17th September 2013 no new NPS-

Swavalamban subscriber registration would be allowed through POP’s on the all citizen

model (UOS) on or after 01/10/2013. Hence, we will not be able to provide the same under

NPS Lite.

65. How can I opt out of the Swavalamban Scheme?

Currently, there are few NPS account holders who have opened the NPS accounts under the

NPS Swavalambam option with us are required to migrate their NPS accounts to POP who

are registered under NPS Lite in case they want to continue to hold the NPS accounts with

Swavalambam option.

In case you want to opt out of the Swavalamban scheme, then follow the below

mentioned steps:

1. Log in to your online ICICIDirect.com trading account and visit the "Place

Service Request" page under NPS product.

2. Click on the link "Opt out of Swavalambhan"

3. Select the "Confirm" to switch out from Swavalamban to non-swavalamban by accepting

the declaration for opting out from Swavalamban Scheme.

Subsequent to the above, the benefit of government contribution will not accrue to your

NPS account after the date on which you become ineligible.

66. What is the timeline of the processing of the NPS Contribution?

The timelines for processing of the NPS Contributions and the credit of the units in your

NPS account are dependent on successful funds settlement and processing of the

transaction by the Trustee Bank (currently - Axis Bank) and Central Record Keeping Agency(

NSDL).

67. Can I place the service request online?

You can place following service request online by visiting the www.icicidirect.com and

logging in to your account:

Change of PFM

Change of Investment option(Active/Auto) and allocation

Opt out of Swavalamban Scheme

NPS Tier II withdrawals

Other service requests are available in the offline mode:

Registration / Change of Nominee (form No.UOS-S2)

Issuance of IPIN/TPIN Issuance and Re-issue of PRAN Card (Form No. UOS-S2)

Unfreezing of PRAN (Form No. UOS-S10 A)

Photo signature modification (Form No. UOS-S7)

Address updation (Form No. UOS-S2)

Bank account updation (Form No. UOS-S2)

68. What is the TAT of the processing of the NPS Contribution?

The TAT of the processing of the NPS Contributions and the credit of the units in your NPS

account are dependent, post the funds settlement and processing of the transaction

has been successfully processed by the Trustee Bank (Axis Bank) and Central Record Keeping

Agency (NSDL).