Indian National Pension Scheme

8/2/2019 Indian National Pension Scheme

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NatioNal PeNsioN system

tHe ReGUlatoR

Pension Fund Regulatory & Development Authority

tHe NPs tRUst

tHe CeNtRal ReCoRDKeePiNG aGeNCy (CRa)National Securities Depository Limited (NSDL)

tHe CUstoDiaN

Stock Holding Corporation o India Limited

tHe tRUstee BaNK

Bank o India

tHe PeNsioN FUNDs (n phbc rdr)

ICICI Prudential Pension Funds Management Company Limitedy

IDFC Pension Fund Management Company Limitedy

Kotak Mahindra Pension Fund Limitedy

Reliance Capital Pension Fund Limitedy

SBI Pension Funds Private Limitedy

UTI Retirement Solutions Limitedy

PoiNts oF PReseNCe (in alphabetical order)

APPLICANT SHOULD NOTE THAT:

This Oer Document sets orth concisely the inormation about NPS that an applicant oughty

to know. Applicant should careully read the Oer Document.

This Oer Document remains eective until a material change occurs. Material changes will bey

notied by Pension Fund Regulatory and Development Authority (PFRDA) to all subscribers.

PFRDA has been established to promote old age income security by establishing, developingy

and regulating pension unds, to protect the interests o subscribers to schemes o pension

unds and or matters connected therewith or incidental thereto.

NPS, regulated by PFRDA, is a dened contribution pension system which is now being oeredy

on voluntary basis to all citizens o India other than Government employees covered by NPS.

Abhipra Capital Limitedy

Alankit Assignments Ltdy

Allahabad Banky

Axis Bank Ltd.y

Bajaj Capital Ltd.y

Central Bank o Indiay

Citibank N.Ay

Computer Age Management Services Pvt. Ltd.y

ICICI Bank Limitedy

ICICI Securities Ltdy

IDBI Bank Limitedy

IL &FS Securities Services Ltdy

India Post NPS Nodal Ocey

Integrated Securities Ltdy

Kotak Mahindra Bank Limitedy

Marwadi Shares and Finance Limitedy

Muthoot Finance Limitedy

Oriental Bank o Commercey

Reliance Capital Limitedy

State Bank o Bikaner and Jaipury

State Bank o Hyderabady

State Bank o Indiay

State Bank o Mysorey

State Bank o Patialay

State Bank o Travancorey

Steel City Securities Ltdy

Stock Holding Corporation O India Ltdy

Syndicate Banky

The South Indian Bank Ltd.y

Union Bank o Indiay

UTI Asset Management Company Limitedy

UTI Technology Services Ltd.y

Yes Bank Ltdy

Zen Securities Limitedy


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tb Cnn

Abbreviations and Denitions 3

Abbreviations 3

Denitions 3

NPS Features 4

Who can join? 4

Who cannot join? 4

How to enroll in the NPS? 4

How much does a subscriber need to contribute? 4

What are the benets o joining the NPS? 5

When can a subscriber withdraw the amount? 5

Tax Benets 5

What investment choice does the subscriber have? 5

Charges 7

Other Matters 8

Power to make guidelines and give directions 8

Investment Guidelines 8

NPS Architecture 8

PFRDA 8

NPS Intermediaries 9

NPS Trust 9

Functions o NPS Trust 10

Services provided by CRA to Subscribers 10

Functions o Trustee Bank 10

Functions o POPs 11

Services to Subscribers 12

Terms & Conditions 13

Risks 13

Explanatory note on specic risks in debt markets and capital markets 14

Risks associated with Debt / Money Markets (i.e. Markets in which

Interest bearing Securities or Discounted Instruments are traded) 14

Risks associated with Capital Markets or Equity Markets (i.e. Markets in

which Equity Shares or Equity oriented instruments are issued and traded) 15

NPS Tier -II Account 15

Table summarizing the main eatures o Tier-II account 16

Swavalamban Scheme: Operational Guidelines 17


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abbrvn nd Dnn

In this Oer Document, the ollowing words and expressions shall have the meaning specied below,

unless the context otherwise requires:

abbrvn

ASP Annuity Service ProviderCGMS Centralised Grievance Management System

CRA Central Recordkeeping Agency

DC Dened Contribution

GRC Grievance Redressal Cell

GRM Grievance Redressal Mechanism

IMA Investment Management Agreement

IPO Initial Public Oer

KYC Know Your Customer

NPS National Pension System

NRA Normal Retirement Age

PFs/PFMs Pension Funds/Pension Fund Managers

PFRDA Pension Fund Regulatory and Development Authority

POP Point o Presence

POP-SP Point o Presence Service Provider (Authorized branches o POP or NPS)

PRA Permanent Retirement Account

PRAN Permanent Retirement Account Number

TB Trustee Bank

FEMA Foreign Exchange Management Act

Dnn

Applicable NAV Unless stated otherwise in the Oer Document, Applicable NAV is the Net

Asset Value at the close o a Working Day.Applicant An individual who has expressed interest in joining NPS and has duly completed

all ormalities.

Custodian Agency responsible or holding assets o the NPS Trust. Reers to the

Stockholding Corporation o India Limited (SHCIL)

IMA Investment Management Agreement, entered into between NPS Trust and

the Pension Funds .

Oer Document This document, issued by PFRDA, making an oer to potential applicants to

subscribe to NPS.

RBI Reserve Bank o India, established under the Reserve Bank o India Act, 1934.

Subscriber An individual who has become a member o the NPS

Unit holder Subscriber is also reerred to as unit holder with respect to the units he/she

owns.Trust Deed The Trust Deed entered into between the NPS Trust and PFRDA, as amended

up to date, or as may be amended rom time to time.

Trust Fund The corpus o the Trust and all property belonging to and/or vested in the

Trustees.

Working Day A day other than any o the ollowing (i) Saturday or Sunday (ii) a day on

which banks including the Reserve Bank o India are closed or business or

clearing and (iii) a day on which the Purchase and Redemption o Units is

suspended.


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NPs Fur

Pension Fund Regulatory and Development Authority (PFRDA) has been established by the Government o

India, Ministry o Finance vide Notication F.No.5/7/2003-ECB & PR dated 10th October, 2003 to promote

old age income security. The Government authorized PFRDA vide Ministry o Finance, Department o

Financial Services letter No. 11(11)/2008-PR dated 29th July 2008 to extend NPS on a voluntary basis to

all citizens o India including workers o the unorganized sector.

NPS is now available to all citizens o India with eect rom May 1, 2009, other than Government

employees already covered under NPS.

Under NPS ollowing two types o accounts will be available to you:

Tier-I account: You shall contribute your savings or retirement into this non-withdrawable account.y

Tier-II account: This is a voluntary savings acility. You will be ree to withdraw your savings rom thisy

account whenever you wish.

While Tier-I account is available rom May 1, 2009, the acility o Tier II account is oered rom December

1, 2009 to all citizens o India including Government employees mandatorily covered by NPS.

th d nnd n h r dcun prn bh tr-i & tr ii ccun.

For details o Tier-II please see page - 15y

Wh cn jn?A citizen o India, whether resident or non-resident, subject to the ollowing conditions:

You should be between 18 60 years o age as on the date o submission o his/her application toy

the POP/ POP-SP.

You should comply with the Know Your Customer (KYC) norms as detailed in the Subscriber Registrationy

Form. The Subscriber Registration orm attached with this Oer Document should be duly lled-in by

the applicant and all terms and conditions mentioned therein should be duly complied with. All the

documents required or KYC compliance need to be mandatorily submitted.

Wh cnn jn?

The ollowing applicants cannot join:

Undischarged insolvent: Individuals who are not granted an order o discharge by a court.y

Individuals o unsound mind: An individual is said to be o unsound mind or the purposes o making ay

contract i, at the time when he makes it, he is incapable o understanding it and o orming a rational

judgment regarding its eect upon his/ her sel-interest.

Pre-existing account holders under NPS.y

Hw nr n h NPs?

To enroll in the NPS, you need to submit the attached Composite Registration Form (UOS-S1) to the POP-

SP o your choice. The list o POP SPs is available on the PFRDA website www.prda.org.in, on the CRA

website www.npscra.nsdl.co.in and on the website o the concerned POP. You may also contact the POPs

listed at page11 o this oer document.

NRIs should have an account with a bank based in India to open an account under NPS. The contributions

made by the NRI would be subject to regulatory requirements as prescribed by RBI rom time to time and

FEMA requirements.

Ater the account is opened, CRA shall mail a Welcome Kit to you containing the subscribers unique

Permanent Retirement Account Number (PRAN) Card and the complete inormation provided by

the subscriber in the Subscriber Registration orm. This account number will be the primary means o

identiying and operating the account.

You will also receive a Telephone Password (TPIN) which can be used to access your account on the call

centre number (1-800-222080). You will also be provided an Internet Password (IPIN) or accessing your

account on the CRA Website (www.npscra.nsdl.co.in) on a 24X7 basis.

Hw uch d ubcrbr nd cnrbu?

Fr tr-i

You are required to make your rst contribution at the time o applying or registration at any POP - SP.

You are required to make contributions subject to the ollowing conditions:

Minimum amount per contribution - Rs 500y

Minimum contribution per year - Rs 6,000y

Minimum number o contributions -01 per yeary


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Over and above the mandated limit o a minimum o 1 contribution, you may decide on the requency o

the contributions across the year as per your convenience.

Fr d cnrbun tr ii rr pg 15.

th ubcrbr cn cnrbu h un hrugh ch, c chqu, dnd dr r ecrncyCrng s (eCs) h/hr chn PoP-sP.

N un chqu h b ccpd.y

There will be a time lag between the time you deposit Cash/ Demand drat/cheque/ Electronic ClearingSystem (ECS) with the POP-SP and the time o credit o units to the PRA, which may range upto 15

working days at the time o initial registration and upto 7 working days or subsequent contributions.

PFRDA will impose penalties on intermediaries in case o delay beyond this period.

Wh r h bn jnng h NPs?

It is voluntary- NPS is open to every Indian citizen. You can choose the amount you want to set asideyand save every year.

It is simple- all you have to do is to open an account with any one o the POPs and get a PRAN.y

It is fexible- You can choose your own investment option and Pension Fund Manager and see yourymoney grow.

It is portable- You can operate your account rom anywhere in the country, even i you change yourycity, job or your pension und manager.

It is regulated- NPS is regulated by PFRDA, with transparent investment norms and regular monitoringyand perormance review o und managers by NPS Trust.

on nng h Nr Rrn ag (NRa) 60 ry You will be required to compulsorilyannuitize at least 40% o your pension wealth and the remaining 60% can be withdrawn as a lumpsum or in a phased manner; in case, you opt or a phased withdrawal:

Minimum 10% o the pension wealth should be withdrawn every year.y

Any amount lying to the credit at the age 70 should be compulsorily withdrawn in lump sum.y

Whdrw n br 60 r gy In such case, you will have to compulsorily annuitize 80%

o your accumulated pension wealth. The remaining 20% can be withdrawn as a lump sum.

Whn cn ubcrbr whdrw h un?

Vng Crr Bn

At any point in time beore 60 yearso age

You would be required to invest at least 80% o the pensionwealth to purchase a lie annuity rom any IRDA regulatedlie insurance company. Rest 20% o the pension wealth maybe withdrawn as lump sum.

On attaining the Age o 60 years andupto 70 years o age

At exit you would be required to invest minimum 40 percento your accumulated savings (pension wealth) to purchase alie annuity rom any IRDA-regulated lie insurance company.

You may choose to purchase an annuity or an amount greaterthan 40 percent. The remaining pension wealth can either bewithdrawn in a lump sum on attaining the age o 60 or in aphased manner, between age 60 and 70, at the option o thesubscriber.

Death due to any cause In such an unortunate event, option will be available to thenominee to receive 100% o the NPS pension wealth in lumpsum. However, i the nominee wishes to continue with theNPS, he/she shall have to subscribe to NPS individually aterollowing due KYC procedure.

tx BnTax benets would be applicable as per the Income Tax Act, 1961 as amended rom time to time.

Wh nvn chc d h ubcrbr hv?The NPS oers you two approaches to invest your money:

Active choice - Individual Funds (Asset Class E, Asset Class C, and Asset Class G )y

Auto choice - Liecycle Fundy


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ag a C e a C C a C G

49 years 22% 16% 62%

50 years 20% 15% 65%

51 years 18% 14% 68%

52 years 16% 13% 71%

53 years 14% 12% 74%

54 years 12% 11% 77%

55 years 10% 10% 80%

*in c au Chc, rcn ng h c h k pc n h d brh h ubcrbr.

N a Vu (NaV) w b rd n rgur b h u b b k nrddcn.

The system or scheme preerence change has been made available with eect rom 1st June, 2010. Thewindow or scheme change preerence shall remain open throughout the year. The subscriber shall beallowed to excercise the choice only once, at any time during the nancial year.

Nhr h acv Chc nr h au Chc prvd urd rurn.

ChrgNPS oers Indian citizens a low cost option or planning their retirement. A 0.0009%* ee (based onassets under management) or managing your wealth, makes pension unds under NPS perhaps theworlds lowest cost money managers. Following are the charges under NPS:

inrdr Chrg hd srvc chrg* mhd Dducn

CRA PRa opnng chrg Rs. 50 thrugh cncn un

annu PRa mnnncc pr ccun

Rs. 2801

Chrg pr rncn Rs. 61

POP

(MaximumPermissibleCharge or eachsubscriber)

in ubcrbrrgrn nd

cnrbun upd

Rs. 40 t b ccd uprn

an ubqunrncn2

Rs. 20

Trustee Bank Pr rncnnng r RBicn

Pr rncnnng r nn-RBi cn4

zero

Rs. 15

thrugh NaVdducn

Custodian5

(On asset value in

custody)

a srvcng chrg 0.0075% p.a or Electronicsegment & 0.05% p.a. or

Physical segment

thrugh NaVdducn

PFM charges invn mngnF3

0.0009% p.a. thrugh NaVdducn

*srvc x nd hr v, ppcb, w b vd pr h xng x w. thr r nddn CRa chrg r h nnnc tr ii ccun. Fr dd cprn tr-i &tr ii, rr Pg16.

1 The number o accounts in CRA reaches 30 lakh the service charges, exclusive o Service Tax and other

taxes as applicable, will be reduced urther to Rs 250 (Rupees two hundred and ty only) or annual

PRA maintenance per account and Rs. 4 (Rupees our only) or charges per transaction. CRAs charge

or maintenance o your permanent retirement would include charges or maintenance o electronic

inormation o the balances in your PRA, or incorporating changes to PRA details received by the CRA

in electronic orm, or sending annual account inormation once a year in printed orm etc.2 These include

1. Regular subscribers contribution.2. Change in subscriber details.3. Change o investment scheme/und manager4. Processing o withdrawal request5. Processing o request or subscriber shiting


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6. Issuance o printed Account statement,7. Any other subscriber services as may be prescribed by PFRDA

3 The Investment Management Fee is inclusive o all transaction related charges such as brokerage,transaction cost etc. except custodian charges and applicable taxes. The Investment Management Feeis calculated on the average monthly assets managed by the pension und.

4 Trustee Bank charges are not charged to subscriber directly. Transaction reers to the entire chain oactivities starting rom receipt o electronic instructions/ receipt o physical instrument to transer o

unds to the designated PFMs. On the outfow side, it would include all activities leading to credito beneciary account.

5 Charges or Demat/Remat, Receipt o shares & SEBI charges are extra.

ohr mrPwr k gudn nd gv drcn

PFRDA may, rom time to time, issue such directions and Guidelines to NPS intermediaries as may benecessary or protecting the interests o the subscribers.

invn Gudn

The PF will manage 3 separate schemes, each investing in a dierent asset class, being:a c e (qu rk nrun) The investment in this asset class would be subjectto a cap o 50%. This asset class will be invested in index unds that replicate the portolio oeither BSE Sensitive index or NSE Nity 50 index. These schemes invest in securities in the sameweightage comprising an index.

a c G (Gvrnn scur) This asset class will be invested in Central Governmentbonds and State Government bonds.

a c C (crd rk brng xd nc nrun) This asset class will be invested in theollowing instruments:

(i) Liquid Funds o AMCs regulated by SEBI with the ollowing lters:

AMCs are SEBI regulated, with Average total assets under management (AUM) or they

most recent six-month period o, at least, Rs.5000 crores.

All assets that are permitted or investment into liquid unds by SEBI.y(ii) Fixed Deposits o scheduled commercial banks with ollowing lters:

Net worth o at least Rs.500 crores and a track record o protability in the last three years.y

Capital adequacy ratio o not less than 9% in the last three years. Net NPA o under 5% as ay

percentage o net advances in the last year.(iii) Debt securities with maturity o not less than three years tenure issued by Bodies Corporate including

scheduled commercial banks and public nancial institutions [as dened in Section 4 (A) o theCompanies Act].

Provided that at least 75% o the investment in this category is made in instruments having aninvestment grade rating rom at least one credit rating agency.

(iv) Credit Rated Public Financial Institutions/PSU Bonds

(v) Credit Rated Municipal Bonds/Inrastructure Bonds

NPs aRCHiteCtURePFRDa

PFRDA is the prudential Regulator or the NPS. PFRDA was established by the Government o India, Ministryo Finance, vide Notication F.No.5/7/2003-ECB & PR dated 10th October, 2003 to promote old ageincome security. PFRDA has been authorized by the Central Government vide Notication F.No.1 (6)2007-PR dated 14th November 2008 to appoint/establish various intermediaries in the system such as CentralRecordkeeping Agency (CRA), Pension Funds (PFs), Points o Presence, Trustee Bank, NPS Trust, Custodian,etc. or operationalizing the NPS roll out to unorganized sector subscribers.

th prn cnun h PFRDa Brd undr :

1. sH. yoGesH aGaRWal

CHAIRMAN

PH- (D)-91-11-26897937


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2. smt. maDHUliKa P. sUKUl

PART-TIME MEMBER

PH-(D)-91-11-23093283

3. sH. taRUN BaJaJPART-TIME MEMBERPH-(D)-91-11-23747507

oFFiCials oF tHe aUtHoRity:

1. smt. RaNi s. NaiR

EXECUTIVE DIRECTOR

PH-(D)-91-11-26130189

2. sH. P.K. tiWaRi

EXECUTIVE DIRECTOR

PH-91-11-26897939

3. sH. Kamal KR. CHaUDHRy

CHIEF GENERAL MANAGER

PH-(D)-91-11-26897942

4. sH. PUsKal UPaDHyay

GENERAL MANAGER

PH-(D)-91-11-261305685. smt. DeePa KotNis

GENERAL MANAGER

PH-(D)-91-11-26897934

NPs inrdrNPs tru

PFRDA has established the NPs tru under Indian Trust Act, 1882 and appointed NPS Board o Trustees

in whom the administration o the National Pension System vests under Indian Law. The Trust is

responsible or taking care o the unds under the NPS. The Trust holds an account with the Bank o India

and this bank is designated as the NPS Trustee Bank.

tru

N nd addr

mR. yoGeNDRa NaRaiN (Formerly Secretary General Rajya Sabha)

CHAIRMAN TRUSTEE

H. No.7, Shivalik Houses,

Sector- 61, Near Sai Baba Mandir,

Noida - 201 301

mR. N. R. RayalU (Former Deputy Comptroller and Auditor General o India)

TRUSTEE

C-7/1, M.S. Flats,

Sector - 13, R. K. Puram,

New Delhi - 110 066mR. G.N. BaJPai (Former Chairman, SEBI)

TRUSTEE

131, Shaan Apartments,

K.D. Marg, Opp. Kirti College,

Prabha Devi,

Mumbai- 400 028.

mR. NaResH Dayal (Frr scrr Gvrnn ind)

TRUSTEE

C-II/83, Moti Bagh-I,

New Delhi

mR. UmRaomal PURoHit

TRUSTEEC-37,Ground Floor,

South Extension II

New Delhi -110049


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Funcn NPs tru

To call or any inormation, report etc. rom PFM(s), Trustee Bank and Custodian.y

To issue directions to PFM(s) or protecting the interest o subscribers.y

To appoint a panel o independent auditors to undertake compliance audit.y

To veriy that Trustee Bank is perorming its unctions as per the provisions o the Agreement withy

NPS Trust.

To veriy that PFM(s) are strictly ollowing the terms and condition o Investment ManagementyAgreement (IMA) with NPS Trust.

Cnr Rcrdkpng agnc (CRa):

National Securities Depository Limited (NSDL) has been appointed as the CRA. The recordkeeping,

administration and customer service unctions or all subscribers o the NPS shall be centralized and

perormed by the CRA. The CRA shall also provide periodic, consolidated PRAN statements to each

subscriber.

srvc prvdd b CRa subcrbr

The ollowing services would be provided by CRA to the subscribers:

> Sending Annual Account statements: Providing subscribers with periodic PRAN account statements

detailing the total contribution, time-wise credits into the account and other relevant inormation.

> Grievance Redressal report: Subscriber can register grievances through the web interace. Alternatively,subscriber can send grievances through other channels also. CRA registers all complaints in electronic

orm and sends the status o Grievance/Redressal to Subscriber.

> Investment Scheme and Switching: Acting on/transmitting instructions o subscribers in respect o :-

Investment option selection;y

Switching over options;y

Conrmation report.y> Retirement Account Inormation to be provided to subscribers:

Pension wealth accumulated in their PRA.y

Amount that can be withdrawn by subscriber in lump sum.y> Web enabled services: CRA provides subscribers with a web based interace to view detailed history o

transactions o PRA. In due course subscriber shall be able to give switching instructions through thisinterace.

NPs tru Bnk:

Bnk ind is unctioning as NPS Trustee Bank. It would manage the banking o the Pension Funds

in accordance with applicable provisions o the NPS, the schemes the guidelines/notications, issued by

PFRDA, Ministry o Finance, and Government o India rom time to time as per applicable law.

Funcn tru Bnk1. The Bank would interace with Pension Fund Managers or

Transer o unds to the PFMs bank account based on the instructions received rom CRA andy

inormation fow or same.

Receipt o unds rom the PFMs bank account to the NPS Trust Banks account based on they

instructions received rom CRA and inormation fow or same.

Report on discrepancies, i any, to/rom the PFM regarding und transer/receipt o undsy

based on inormation fow received rom PFM/CRA and actual und transer.

2. The Bank would interace with the CRA or

Upload o details o contribution received rom Pay and Accounts oce in specied ley

ormat to CRA.

Transer o unds based on the instructions received rom CRA during the settlement processy

to various entities.

Conrmation report by CRA to the bank and the discrepancy report by CRA to the Bank .y

Electronic Fund Transer/ Preparation o cheques or disbursement rom withdrawal accounty

and orwarding it to CRA.

Upload o statement o closing balance o the NPS Trust account with the Bank to the CRA system.y

Daily reconciliation between balances in various CRA related accounts o the Bank with they

details available in CRA system.

Downloading o incremental PAO Master le and Transaction id list le.y

Transer o unds based on the instructions o CRA to the Bank to Annuity Service Providery

and or to the withdrawal account.

3. The Bank would interace and provide such reports as may be required by Trustees, Custodian and

other entities o the NPS architecture as may be prescribed by PFRDA rom time to time.


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Pnn Fund (PF)/Pnn Fund mngr (PFm):

Appointed PFs would manage the retirement savings o subscribers under the NPS. The PFs are required

to invest strictly in accordance with guidelines issued by the Government/PFRDA.

The NPS allows you to choose rom any one o the ollowing six entities ( in alphabetical order) to manage

your pension und:-

ICICI Prudential Pension Funds Management Company Limitedy

IDFC Pension Fund Management Company Limitedy

Kotak Mahindra Pension Fund Limitedy

Reliance Capital Pension Fund Limitedy

SBI Pension Funds Private Limitedy

UTI Retirement Solutions Limitedy

Pn Prnc (PoP):

Points o Presence (POPs) act as the customer interace or non-Government subscribers/individual citizens

who wish to open Permanent Retirement Account (PRA) with Central Recordkeeping Agency (CRA) or

the purpose o subscribing to the NPS. You may choose any one o the ollowing service providers (in

alphabetical order) appointed as Points o Presence (POPs) by PFRDA:-

(t r nubr/cnc nubr)1. Abhipra Capital Ltd. 1800-3001-7777

2. Alankit Assignment Ltd. 011-42541234/42541771/17733. Allahabad Bank 033-221047544. Axis Bank Ltd. 1860-425-8888*5. Bajaj Capital Ltd. 1800-3000-6000/1800-3000-90006. Central Bank o India 022-221536917. Citibank N.A 1800-180-01238. Computer Age Management Services Pvt. Ltd. 044-30611606/07/089. ICICI Bank Limited 022-2830811010. ICICI Securities _11. IDBI Bank Limited #1800-22-1070/^180-200-194712. IL & FS Securities Services Ltd., 022-4249300013. India Post _14. Integrated Securities Ltd. 044-2814081515. Kotak Mahindra Bank Limited 1800-116-022 rom North India/ 1800-226-022

rom rest o India+912266006022 rom abroad

16. Marwadi shares & Finance Ltd. 0281-2332001/717. Muthoot Group _18. Oriental Bank o Commerce 1800-180-1235/0124-234094019. Reliance Capital Limited 022-3046230020. State Bank o Bikaner and Jaipur 1800-180-600521. State Bank o Hyderabad 040-2338747122. State Bank o India 022-22740832/2274282123. State Bank o Mysore 1800-425-224424. State Bank o Patiala 1800-180-2010/0172-264801125. State Bank o Travancore 1800-425-556626. Steel City Securities Ltd. _

27. Stock Holding Corporation o India Ltd. 011-26425335/6/728. Syndicate Bank _29. The South Indian Bank Ltd. 1800-843-1800/0484-235192330. Union Bank o India 1800-022-224431. UTI Asset Management Company Limited 022-66786410/1800-221-23032. UTI Technologies 022-6793108733. Yes Bank _

34. Zen Securities Ltd. _

Each o these above mentioned 34 entities would have authorized branches (POP-SPs) or accepting

your application and contributions. The POP-SPs shall also be responsible or providing a wide range o

services to NPS subscribers, as prescribed by PFRDA rom time to time. th cp PoP-sP

vb PFRDa wb(www.prd.rg.n), h CRa wb (www.npcr.nd.c.n) nd h

wb h cncrnd PoP.Funcn PoP1. To receive the duly lled application orm along with the KYC documentation as may be applicable

rom time to time.

2. To veriy KYC documents as may be required rom time to time.


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3. To collect and veriy contributions that may be received through cash/cheque/Demand Drat/

Electronic Clearing System (ECS).

4. To collect/deduct NPS application processing ees and issue o receipt to the Subscriber against

the same.

5. To submit complete and accepted orms on a daily basis, to CRA/CRA Facilitation Centre (FC).

6. To upload the subscriber contribution les into CRA system and simultaneously arrange to transer the

unds into the account o the NPS trust maintained with the Trustee Bank.

7. To maintain and report records o all transactions in accordance with the provisions o PML Act, 2002

and Rules ramed thereunder, as may be applicable, rom time to time.* Accessible rom BSNL/MTNL numbers only. Local call charges will be applicable# For MTNL/BSNL subscribers^ other than MTNL/BSNL

8. Regular subscriber contribution upload

Veriy PRAN card details on the deposit slip, the ormat or which shall be prescribed by PFRDA.y

Collection and verication o contributions that may be received through cash/cheque/Demand Drat/yElectronic Clearing System (ECS).

Collection/deduction o contribution processing ee and issue o receipt to the subscriber againstythe same.

Uploading subscriber contribution details online into the CRA system, in respect o subscribers ory

whom clear unds are available, on a daily basis.Remit clear unds into the account o the NPS trust maintained with the Trustee Bank on at leastyT+1 basis.

Maintain hard copies o deposit slips.y

9. Subscriber servicing

Carry out changes in subscriber details on request by subscriber subject to the conditions stipulatedyby PFRDA.

Receiving switch request or change in PFM and/or investment option rom subscriber and transmittingythe same to CRA.

Receiving withdrawal requests rom subscriber and transmitting the same to CRA. For this purpose,ysubscriber would put in a withdrawal request to PoP-SP. The subscribers pension wealth would becredited directly to his bank account by trustee bank, on receiving instructions rom CRA, through RTGS/NEFT or by way o a pay order where his/her personal bank details are not available.

Attending to subscribers request or shit to another PoP-SP.y

Any other NPS account related service as may be prescribed by PFRDA rom time to time.y

10. Grievance handling

Receiving o grievances submitted by the subscriber against PoP / PoP-SP or any other NPS Intermediaryyin the ormat prescribed by PFRDA and uploading o all grievances in the Central Grievance ManagementSystem (CGMS) o CRA on a daily basis. The CGMS system o CRA would route the grievances torespective NPS intermediaries.

Receiving grievances raised by the subscriber against PoP/PoP-SP through the CRA call centre/CGMSyo CRA by accessing the CGMS.

annu srvc Prvdr (asP):

ASPs would be responsible or delivering a regular monthly pension to the subscriber or the rest o his/her lie.

seRViCes to sUBsCRiBeRs1. subcrbr srvc

It is the endeavour o PFRDA / NPS Trust to provide consistently high quality service to NPS subscribers.

PFRDA / NPS Trust strive to upgrade the quality o services through implementation o technology and

through ensuring quality consciousness amongst all service personnel and associated NPS intermediaries.

2. subcrbr Grvnc Rdr mchn

NPS has a multi-layered Grievance Redressal Mechanism which is easily accessible, simple, quick, air,responsive and eective.

You have the option o registering grievance/complaint through the ollowing alternatives:

y C Cnr/inrcv Vc Rpn s (iVR)

You can contact the CRA call centre at toll ree telephone number 1-800-222080 and register the grievance.You will have to authenticate yoursel through the use o T-pin allotted to you at the time o opening a


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Permanent Retirement Account under the NPS. On successul registration o your grievance, a token numberwill be allotted by the Customer Care representative or any uture reerence.

y Wb bd nrc

You can register the grievance at the website www.cra-nsdl.co.in with the use o the I-pin allotted to youat the time o opening a Permanent Retirement Account. On successul registration, a token number willbe displayed on the screen or uture reerence.

y Phc rYou can submit the grievance in a prescribed ormat to the POP SP who would orward it to CRACentral Grievance Management System (CGMS). You will have to mention your PRAN as the means oauthentication. Upon submission o orm with the POP-SP, you will get an acknowledgement receipt.The token number would be emailed to you (i the email id is mentioned), otherwise the same will beemailed to the concerned POP-SP. You can get the token number rom the POP-SP upon presentation othe acknowledgement receipt.

Hw chck h u h Grvnc?

You can check the status o the grievance at the CRA website www.cra-nsdl.co.in or through the CallCentre by mentioning the token number. You can also raise a reminder through any one o the modesmentioned above by speciying the original token number issued.

I you do not receive any response within 30 days or are not satised with the resolution by CRA, you can

apply to the Grievance Redressal Cell (GRC) o PFRDA.Grievances received by the GRC directly rom the subscribers only shall be entertained. GRC shall notentertain any complaints written on behal o the subscribers by advocates, agents or third parties unlessormally authorized by the subscriber.

Cp ddr h GRC PFRDa undr:

Grvnc Rdr C

Pension Fund Regulatory and Development Authority

1st Floor, ICADR Building, Plot No 6, Vasant Kunj,

Institutional Area, Phase II, New Delhi 110070,

Tel no 011 26897948-49, Fax: 011-26892417,

Email: [email protected]

tr & CndnCndn

The subscribers personal inormation shall not be disclosed to a third party (outside NPS) without theexpress or implied consent o the subscriber. The inormation may be used internally or or creatingawareness (telephonic/written) o new services o NPS. However, there are some exceptions, viz. disclosureo inormation under compulsion o law, where there is a duty to the public to disclose and where interesto the NPS requires disclosure.

subcrbr Du

Citizenship status

NPS is only or the citizens o India. I the subscibers citizenship status changes, his/her account underNPS would be closed.

Chrg nd Pn

1. I the subscriber contributes less than Rs. 6,000 in a year, then

He would have to bear a deault penalty o Rs 100 per year o deault and the accounty

would become dormant.

In order to reactivate the account, the subscriber would have to pay the minimum contributions,y

along with penalty, due or the period o dormancy.

A dormant account shall be closed when the account value alls to zero.y2. The ee structure may change as may be decided by PFRDA/NPS Trust rom time to time.

Rkinvn

1. There are no guarantees on investment. NPS is a dened contribution plan and the benetswould depend upon the amounts o contributions invested and the investment growth up to

point o exit rom NPS.

2. You may seek proessional advice to assist you in planning your nances. However, this would be your

own decision and PFRDA would not be responsible or any consequences

3. Past perormance o the Fund Manager does not guarantee uture perormance o the investment.


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4. The name o the Fund does not in any manner indicate either the quality o the investment scheme or

its uture prospects and returns.

5. All investments are subject to market risks and there is no assurance or guarantee that the investment

objectives shall be achieved.

6. Investment involves investment risks such as trading volumes, settlement risk, liquidity risk, deault risk

including the possible loss o principal.

7. Value o your investment in the NPS may go up or down depending upon the orces and actors

aecting nancial markets in general.

8. Tax laws may change, aecting the Return On Investment (ROI).

eXPlaNatoRy Note oN sPeCiFiC RisKs iN DeBt maRKets aND CaPital maRKets

The ollowing is an illustrative list o risks which may be aced by investing in nancial markets:

Rk cd wh Db / mn mrk (.. mrk n whch inr brng

scur r Dcund inrun r rdd)

Crd Rk:y Securities carry a Credit risk o repayment o principal or interest by the borrower. This riskdepends on micro-economic actors such as nancial soundness and ability o the borrower as also macro-economic actors such as Industry perormance, Competition rom Imports, Competitiveness o Exports,Input costs, Trade barriers, Favorability o Foreign Currency conversion rates, etc.

Credit risks o most issuers o Debt securities are rated by Independent and proessionally run rating

agencies. Ratings o Credit issued by these agencies typically range rom AAA (read as Triple Adenoting Highest Saety) to D (denoting Deault), with about 6 distinct ratings between thetwo extremes.

The highest credit rating (i.e. lowest credit risk) commands a low yield or the borrower. Conversely,the lowest credit rated borrower can raise unds at a relatively higher cost.

svrgn rk:y The Government raises money to meet its Capital and Revenue expenditure by issuing Debtor Discounted Securities. Since payment o interest and principal amount has a sovereign status implying nodeault, such securities are known as securities with sovereign credit. For domestic borrowers and lenders,the credit risk on such Sovereign credit is near zero and is popularly known as risk ree security or Zero-Risk security. Thus Zero-Risk is the lowest risk, even lower than a security with AAA rating and hencecommands a yield, which is lower than a yield on AAA security.

Prc-Rk r inr-R Rk:y From the perspective o coupon rates, Debt securities can be classied in

two categories, i.e., Fixed Income bearing Securities and Floating Rate Securities. In Fixed Income BearingSecurities, the Coupon rate is determined at the time o investment and paid/received at the predeterminedrequency. In the Floating Rate Securities, on the other hand, the coupon rate changes - foats - with theunderlying benchmark rate, e.g., MIBOR, 1 yr. Treasury Bill.

Fixed Income Securities (such as Government Securities, bonds, debentures and money marketinstruments) where a xed return is oered, run price-risk. Generally, when interest rates rise, priceso xed income securities all and when interest rates drop, the prices increase. The extent o all orrise in the prices is a unction o the existing coupon, the payment requency o such coupon, daysto maturity and the increase or decrease in the level o interest rates. The prices o GovernmentSecurities (existing and new) shall be infuenced only by movement in interest rates in the nancialsystem. Whereas, in the case o corporate or institutional xed income securities, such as bonds ordebentures, prices are infuenced not only by the change in interest rates but also by credit ratingo the security and liquidity thereo.

Rnvn Rk:y Investments in xed income securities may carry reinvestment risk as interest ratesprevailing on the interest or maturity due dates may dier rom the original coupon o the bond.Consequently the proceeds may get invested at a lower rate.

lqud Rk:y The corporate debt market is relatively illiquid vis-a-vis the Government securities market.There could thereore be diculties in exiting rom corporate bonds in times o uncertainties. Liquidityin an option thereore may suer. Even though the Government Securities market is more liquidcompared to that o other debt instruments, on occasions, there could be diculties in transacting inthe market due to extreme volatility or unusual constriction in market volumes or on occasions whenan unusually large transaction has to be put through.

Prpn Rk:y In the event o prepayments, investors may be exposed to changes in tenorand yield. Also, any Charge os would result in the reduction in the tenor o the Pass through

Certicates (PTCs).


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Rk cd wh Cp mrk r equ mrk (.. mrk n whch equ

shr r equ rnd nrun r ud nd rdd)

Prc fucun nd V:y Investments are subject to market and other risks and there can

be neither a guarantee against loss resulting rom an investment in the NPS nor any assurance that

the objective o the NPS shall be achieved. The NAV o the Units issued under the NPS can go up or

down because o various actors that aect the capital market in general, such as, but not limited

to, changes in interest rates, Government policy and volatility in the capital markets. Pressure on the

exchange rate o the Rupee may also aect security prices.

lqud Rk:y Liquidity in Equity investments may be aected by trading volumes, settlement

periods and transer procedures. These actors may also aect the PFs ability to make intended

purchases/sales, cause potential losses to the investments and result in the PFMs missing certain

investment opportunities.

NPs - tieR- ii ccun1. The acility o Tier II account is available rom December 1, 2009 to all citizens o India including

Government employees mandatorily covered by NPS, who hold a Tier I account.

2. Unlike Tier I which is a non-withdrawable pension account, Tier II is a withdrawable account with

an aim to provide a window o liquidity to NPS subscribers. Both Tier I (Pension Account) and

Tier II (Savings Account) will be pure retirement savings products, the only distinction being that

Tier- I is a non- withdrawable account while Tier-II is a withdrawable account to meet nancial

contingencies.

3. The Tier-II would enable the existing Permanent Retirement Account (PRA) holders to build savings

over and above the investments in the Tier I pension account. An active Tier I account is a pre-requisite

or opening a Tier II account.

K ur tr-ii ccun

i. No additional CRA charges will be levied or account opening and annual maintenance in respect o

Tier II. However, CRA will charge separately or each transaction in Tier II, the charges being identical

to the transaction charge structure in Tier I.ii. There will be no limits on the number o withdrawals rom Tier II account.

iii. There will be acility or separate nomination and scheme preerence in Tier II.

iv. The subscriber would have the same choice o PFMs and schemes as in the case o Tier I account in

the unorganized sector.

v. Contributions can be made through any POP/POP-SP.

vi. There will be acility o one-way transer o savings rom Tier II to Tier I but unds cannot be transerred

rom Tier I to Tier II.

vii. Bank details will be mandatory or opening a Tier II account.

viii. No separate KYC or opening Tier II account will be required; the only requirement is a pre-existing

Tier I account.

mnu cnrbun rqurn:1. Minimum contribution at the time o account opening - Rs.1000/-

2. Minimum amount per contribution - Rs.250/-

3. Minimum Account Balance at the end o FY - Rs.2000/-

4. Minimum number o contributions in a year - 01

Penalty o Rs. 100/- to be levied on the subscriber or not maintaining the minimum account balance and/

or not making the minimum number o contributions.

Chrg srucur r PP:

Cgr a/c pnng Cnrbun prcng

Both Tier I& II (at the same time) Rs.20.00 Rs.40.00*

Tier I only Rs.20.00 Rs.20.00

Tier II only (or existing Tier II subscribers) Rs.20.00 Rs.20.00

*(Rs. 20/- or Tier- I contribution and Rs. 20/- or Tier II Contribution)


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swvbn sch: oprn Gudn

th sch nd ppcb

1. The scheme will be called Swavalamban Yojana. It will be applicable to all citizens in the unorganised

sector who join the NPS administered by the Interim Pension Fund Regulatory and Development

Authority (PFRDA).

Bn undr h sch

2. Under the scheme, Government will contribute Rs. 1000 per year to each NPS account opened in the

year 2010-11 and or the next three years, that is, 2011-12, 2012-13 and 2013-14. The benet will be

available only to persons who join the NPS with a minimum contribution o Rs. 1,000 and maximum

contribution o Rs. 12,000 per annum.

Dnn:

3. Unrgnd cr: For the purpose o this scheme, a person will be deemed to belong to the

unorganised sector i that person:

is not in regular employment o the Central or a State Government, or an autonomous body/y

public sector undertaking o the Central or state Government having employer assisted retirement

benet scheme, oris not covered by a social security scheme under any o the ollowing laws:y

Employees Provident Fund and Miscellaneous Provisions Act,1952y

The Coal Mines Provident Fund and Miscellaneous Provisions Act,1948y

The Seamens Provident Fund Act, 1966y

The Assam Tea Plantations Provident Fund and Pension Fund Scheme Act, 1955y

The Jammu and Kashmir Employees Provident Fund Act, 1961y

4. All other denitions as given in the NPS oer document will apply to the terms used in this scheme.

egb:

5. The scheme will be applicable to all persons in the unorganised sector subject to the condition that the

benet o Central Government contribution will be available only to those persons whose contribution

to NPS is minimum Rs.1,000 and maximum Rs. 12,000 per annum, or both Tier I and II taken together,

provided that the person makes a minimum contribution o Rs. 1000 per annum to his Tier I NPS

account.

6. As a special case and in recognition o their aith in the NPS, all NPS accounts opened in 2009-10 will

be entitled to the benet o Government contribution under this scheme as i they were opened as

new accounts in 2010-11 subject to the condition that they ulll all the eligibility criteria prescribed

under these guidelines.

Fundng

7. The scheme will be unded by grants rom Government o India. The grants would be given such that

monthly payment in the subscriber accounts would be possible.

oprn

8. A person will have the option to join the NPS as an individual as per the existing scheme or through

the CRA Lite approved by PFRDA.

9. At the time o joining the NPS the subscriber will have to declare whether he/she alls within the

denition o unorganised sector as dened in para 3 above and would also declare that his contribution

would range between Rs. 1,000 to Rs. 12,000 per annum. I subsequent to opening the NPS account

it is ound that the subscriber has made a alse declaration about his eligibility or the benets under

this scheme or has been wrongly given the benet o Government contribution under this scheme or

whatsoever reason, the entire Government contribution will be deducted along with penal interest as

may be specied rom time to time.

I the status o the subscriber changes to ineligible ater joining the NPS, he/she should immediately

declare so and the benet o Government contribution will not accrue to the subscribers account

ater the date on which the subscriber becomes ineligible.

10. At the end o each nancial year the CRA will, by 7th April o the ollowing year, send to the PFRDA

details o the NPS accounts opened during the year, showing separately the number o eligible NPS

accounts in which the subscribers contribution has been between Rs. 1,000 and Rs. 12,000. CRA will

also send these details with individual PRAN to the Trustee Bank.


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Documents

Indian National Pension Scheme