- What is PFRDA?
- Timeline:
- Two accounts
- NPS: Eligibility
- What is PRAN?
- Players in the NPS game
- NPS-lite
- Swavalamban Scheme
- Why NPS is not popular?
- Why Swavalamban/NPS-lite is not popular?
- NPS Corporate Sector Model
- Mock Questions
What is PFRDA?
- Pension Fund Regulatory and Development Authority (PFRDA)
- Union Government created this body via an executive order. (2003)
- To regulate and develop the pension sector in India.
- PFRDA is not a statutory body yet. (Because bill related to PFRDA is yet to be passed).
Timeline:
2003 | PFRDA established |
2004 | (compulsory) New Pension System (NPS), for the new recruits in Government of India (except the armed forces). |
2009 | New Pension System (NPS) is opened up for any citizens in India who wanted to subscribe, even if they are not in Government service. |
Just like we’ve NPS in India, In USA, they’ve a pension scheme for all citizens called “401 (K)”.
Two accounts
In New Pension scheme, there are two types of account
Tier-I | Tier II |
Compulsory for every subscriber | Optional.You can open Tier II, only if you’ve opened a Tier I account first. |
You cannot Premature withdraw money before retirement age. | Can |
NPS: Eligibility
Who can join? | Who cannot join? |
Any citizen of India (age 18-60) | Below 18 and above 60 |
NRI can also join, if he has account in Indian bank. |
|
What is PRAN?
- When you subscribe to New pension scheme, you’re given a unique account number. Known as “Permanent Retirement Account Number (PRAN)”
- Recall that UID/Aadhar also gives you a unique number. But there are differences:
Aadhar vs PRAN: Difference
UID/Aadhar |
PRAN |
Any resident of India | Only Indian citizen |
Any age | Only 18-60 |
Free | You’ve to make regular payments. |
|
PRAN number gives you pension. |
Mentally-unsound and insolvent can get. | Can’t. |
Voluntary | Compulsory for new recruits in Government service (minus armed forces). |
Aadhar vs PRAN: Similarity
- For a private citizen, both are voluntary.
- NRI can apply for both.
Players in the NPS game
Subscriber | Person who joins for New pension scheme.. |
PFRDA | Pension Fund Regulatory & Development Authority. Main boss for NPA. |
CRA |
|
Fund manager | ICICI, UTI, SBI, Kotak etc are the fund managers for NPS.You can decide which fund manager you want to pick up.When you contribute money to NPS, it goes to these fund managers. They invest your money in following*
*You can decide how much you want to invest in each of them. (with some caveats). |
NPS doesn’t provide “uniform” or “guaranteed” return on your investment. Why?
- It varies according to how much of your money is invested in Debt or Equity.
- You can only tell the fund manager how much % to invest in debt / equity but it is upto the fund manager whether he invests in company X or Company Y. Each fund manager has different preference for companies.
Thus different NPS account holders will end up earning different % on their investment. On the other hand, the EPFO (Employees’ provident Fund) offers uniform 8.5% interest rate to all account holders.
NPS-lite
- So far you know that NPS was originally meant for Government employees. Later it was extend to all residents citizens of India. Let’s call that “NPS main”.
- Government of India + PFRDA, also initiated another scheme called “NPS-lite”.
- “NPS-lite” is meant for weaker and economically disadvantaged sections of society.
- How is it different from the “main” NPS?
(main) NPS |
NPS-lite |
Target audience= (mostly) middle class and upwards. | Poor and lower middle class. |
You’ve to give minimum Rs.500 per contribution. | Only Rs.100 |
You need to visit your agent/bank/fund manager/website and pay the money. | An aggregator (e.g. NGO or Microfinance agent) will come to you and collect money. |
you get to decide the proportion of money you want to invest debt vs equities (with some conditions). | by default 85% of your money is invested in debt and 15% in equities. |
Swavalamban Scheme
Started in |
|
Target audience | People working in unorganized sector. |
Condition? |
|
What is the benefit? |
|
Ok, everything sounds well and good with NPS but then
Why NPS is not popular?
Main reason = Commi$$ion.
- Because NPS offers very low Commission to Fund managers (ICICI, SBI, UTI etc.)
- So those players (ICICI, SBI) rather prefer to market their own pension, insurance, retirement plans rather than promoting NPS among their (regular) bank customers.
- Same goes for financial advisor, insurance agents etc. They get more Commission by promoting pension/insurance/retirement plans of private companies to their clients compared to NPS.
Other reasons
- In NPS, there are multiple actors: PFRDA, CRA and fund managers. NPS doesn’t offer uniform rate of return. Common people find this setup difficult and unsecure, unlike tried and trusted LIC or PPF.
- Income Tax benefits under NPS are not significantly higher than the existing investment options.
- NPS is not spending lot of money on ads with film stars / cricketers.
Why Swavalamban/NPS-lite is not popular?
Chindu | @PFRDA chairman, I want you to subscribe more and more poor people in the Swabhiman pension scheme because elections are incoming. |
PFRDA chairman | Forgive me Sir but you’re confusing Swabhiman with Swavalamban.
|
Chindu | Ya ya Swabhiman, Swavalamban… whatever man….I’m not giving UPSC exam so I don’t need to worry about such things. Our job is to harass those aspirants with these catchy terms- not ourselves, Got it? Coming back to the main topic: I want you to get more and more poor people in whatever pension scheme we are running, because general elections are coming. |
PFRDA chairman | I already tried everything I could, but it’s just not working! |
Chindu | Then hold meetings Jholachhap NGOs and bogus microfinance companies and tell them to use their network of grassroot workers to form more self help groups (SHG) and get more and more subscribers. |
PFRDA chairman | It is Easier said than done because
|
Chindu | Man Are you suggesting that I should stop MNREGA and Direct cash transfer so people can put more money in NPS???????? |
PFRDA Chairman | You’re putting words in my mouth. But yes, sounds like a good idea. |
Chindu | Well it is definitely not a good idea sir-ji. Because MNREGA, Direct benefit transfer and food security act are the three main selling points of our party’s election campaign. |
Jokes apart, when it comes to MCQs, DONOT make silly mistakes the schemes starting with “S”
Swavalamban |
Government gives subsidy on NPS account of unorganized sector. |
Swabhiman |
Increase banking penetration in remote rural areas. |
Sabla |
(Rajiv Gandhi) Scheme for Empowerment of Adolescent GirlsGives them food, skill-training and health education. |
Swadhar |
This provides food, shelter, support, counseling to women in difficult circumstances e.g.
|
Swajaldhara |
Improving drinking water availability in the rural areas |
STEP |
Support to Training and Employment Programme. |
NPS Corporate Sector Model
- Started in 2011.
- Helps firms in organized sector, to move their employees to the New pension scheme.
Mock Questions
- Correct Statement about NPS?
- Initially it was meant for employees in central service and armed forces.
- PFRDA, a statutory body, is responsible for implementation of NPS.
- Only nationalized banks can work as fund managers of NPS.
- None of above
- PRAN is the account number of _______ subscriber.
- EPFO
- ESIC
- NPS
- LIC
- Correct Chronology (older to newer)
- Swabhiman, NPS, Swavalamban
- NPS, Swavalamban, Swabhiman
- Swabhiman, Swavalamaban, NPS
- None of above
- An NRI is eligible for
- Aadhar card
- New pension scheme
- Voting from his respective constituency in India
- All of above
- None of above
- What is the purpose of Swavalamban scheme?
- Provide scholarships to poor girls pursing higher education
- Provide financial assistance to self help groups in rural areas.
- Increase subscription of NPS
- Improve banking penetration in rural areas
- What is the purpose of Swabhiman scheme?
- Provide scholarships to poor girls pursing higher education
- Provide financial assistance to self help groups in rural areas.
- Increase subscription of NPS
- Improve banking penetration in rural areas
Q7. Who among following, will definitely lose his job/position if he is declared insolvent?
- Central Vigilance Commissioner
- Chairman/ member of NHRC
- Judge of supreme court
Choices
- Only 1 and 2
- Only 2 and 3
- Only 1 and 3
- None of above
Q8. Correct statement
- Every NPS account holder is eligible for Aadhar.
- Every Aadhar card holder is eligible for NPS.
Choices:
- Only 1
- Only 2
- Both
- None
Q9. Incorrect Match
- Sabla: Widows
- Swabhiman: Physically Challenged
- Swavalamban: Unorganized Sector
- Swadhar: Women In Difficult Circumstances
Choices
- Only 2 and 3
- Only 1 and 2
- Only 3 and 4
- All of them
Mains
- Swavalamban (5m)
- Write a note on New Pension Scheme and its salient features (12m)
- Discuss various pension schemes launched by Government of India for the weaker sections of society. (15m)
Interview
- What are the flaws in NPS? If you were the chairman of PFRDA, how would you correct them?
- If LIC can be successful, why can’t NPS?
- Government shouldnot increase FDI in pension sector because it’ll hurt NPS. Agree/disagree?
pran card details call me 9851 772793 air cell ..9679065988 air tell
mail news2bm@gmail.com… bkmnews@hotmail.com
NPS IS GOOD PLAN FOR AGED PERSON IF U DEPOSITE Rs 1000 + GOVT . ANUDAN 1000 X 12% EG COMPOUND INTEREST GET 2 U UP 2 60 RS
NPS IS GOOD PLAN FOR AGED PERSON IF U DEPOSITE Rs 1000 + GOVT . ANUDAN 1000 X 12% EG COMPOUND INTEREST GET 2 U UP 2 60 YRS
NATIONAL PENSION SYSTEM
Government of India established Pension Fund Regulatory and Development Authority (PFRDA)- External website that opens in a new window on 10thOctober, 2003 to develop and regulate pension sector in the country. The National Pension System (NPS) was launched on 1st January, 2004 with the objective of providing retirement income to all the citizens.NPS aims to institute pension reforms and to inculcate the habit of saving for retirement amongst the citizens.
Initially, NPS was introduced for the new government recruits (except armed forces). With effect from 1st May, 2009, NPS has been provided for all citizens of the country including the unorganised sector workers on voluntary basis.
Additionally, to encourage people from the unorganised sector to voluntarily save for their retirement the Central Government launched a co-contributory pension scheme, ‘Swavalamban Scheme- External website that opens in a new window’ in the Union Budget of 2010-11. Under Swavalamban Scheme- External website that opens in a new window, the government will contribute a sum of Rs.1,000 to each eligible NPS subscriber who contributes a minimum of Rs.1,000 and maximum Rs.12,000 per annum. This scheme is presently applicable upto F.Y.2016-17.
NPS offers following important features to help subscriber save for retirement:
• The subscriber will be allotted a unique Permanent Retirement Account Number (PRAN). This unique account number will remain the same for the rest of subscriber’s life. This unique PRAN can be used from any location in India.
PRAN will provide access to two personal accounts:
• Tier I Account: This is a non-withdrawable account meant for savings for retirement.
• Tier II Account: This is simply a voluntary savings facility. The subscriber is free to withdraw savings from this account whenever subscriber wishes. No tax benefit is available on this account.
Sir,
I want to make pran card for peoples without making franchisee what amount I have to pay for that and what is the procedure.
9011940366
REGULATOR AND ENTITIES FOR NPS
Pension Fund Regulatory and Development Authority (PFRDA) : Pension Fund Regulatory and Development Authority (PFRDA)- External website that opens in a new windowis an autonomous body set up by the Government of India to develop and regulate the pension market in India.
Point of Presence (POP) : Points of Presence (POPs) are the first points of interaction of the NPS subscriber with the NPSarchitecture. The authorized branches of a POP, called Point of Presence Service Providers (POP-SPs), will act as collection points and extend a number of customer services to NPS subscribers. The Pension Fund Regulatory and Development Authority (PFRDA)- External website that opens in a new window has authorized 58 institutions including public sector banks, private banks , private financial institutions and the Department of Posts- External website that opens in a new window as Points of Presence (POPs) for opening the National Pension System (NPS) accounts of the citizens.
Central Recordkeeping Agency (CRA) : The recordkeeping, administration and customer service functions for all subscribers of the NPS are being handled by the National Securities Depository Limited (NSDL)- External website that opens in a new window , which is acting as the Central Recordkeeper for theNPS.
Annuity Service Providers (ASPs) : Annuity Service Providers (ASPs)- PDF file that opens in a new window would be responsible for delivering a regular monthly pension to the subscriber after exit from the NPS.
• NPS Trust- External website that opens in a new window
• Trustee Bank- External website that opens in a new window
• Pension Fund Managers- External website that opens in a new window
• FAQs on Regulator and Entities of NPS- External website that opens in a new window
WHO CAN JOIN NPS?
Central Government Employees
NPS is applicable to all new employees of Central Government service (except Armed Forces) and Central Autonomous Bodies joining Government service on or after 1st January 2004. Any other government employee who is not mandatorily covered under NPS can also subscribe to NPS under “All Citizen Model” through a Point of Presence – Service Provider (POP-SP).
• Procedure to subscribe
• Contribution to NPS
• Withdrawal
State Government Employees
NPS is applicable to all the employees of State Governments, State Autonomous Bodies joining services after the date of notification by the respective State Governments. Any other government employee who is not mandatorily covered under NPS can also subscribe to NPS under “All Citizen Model” through a Point of Presence – Service Provider (POP-SP).
• Procedure to subscribe
• Contribution to NPS
• Withdrawal
Corporate
A Corporate would have the flexibility to decide investment choice either at subscriber level or at the corporate level centrally for all its underlying subscribers. The corporate or the subscriber can choose any one of Pension Fund Managers (PFMs)- External website that opens in a new window available under “All Citizen Model” and also the percentage in which the funds are allocated in various asset classes.
• Benefits to Corporate
• Benefits to Subscribers
• Procedure to Subscribe
• Contribution to NPS
• Withdrawal
Individual
All citizens of India between the age of 18 and 60 years as on the date of submission of his / her application to Point of Presence (POP) / Point of Presence-Service Provider (POP-SP) can join NPS.
• Procedure to Subscribe
• Contribution
• Withdrawal
Unorganised Sector Workers – Swavalamban Yojana
A citizen of India between the age of 18 and 60 years as on the date of submission of his / her application, who belongs to the unorganized sector or is not in a regular employment of the Central or a state government, or an autonomous body/ public sector undertaking of the Central or state government, can open NPS -Swavalamban account. The subscriber of NPS -Swavalamban- External website that opens in a new window account should not be covered under social security scheme like Employees’ Provident Fund and miscellaneous Provisions Act, 1952, The Coal Mines Provident Fund and Miscellaneous Provisions Act, 1948, The Seamen’s Provident Fund Act, 1966, The Assam Tea Plantations Provident Fund and Pension Fund Scheme Act, 1955 and The Jammu and Kashmir Employees’ Provident Fund Act, 1961.
• Procedure to register for Swavalamban Yojana
• Contribution
• Withdrawal
BENEFITS OF NPS
Some of the benefits of the National Pension System (NPS) are:
• It is transparent – NPS is transparent and cost effective system wherein the pension contributions are invested in the pension fund schemes and the employee will be able to know the value of the investment on day to day basis.
• It is simple – All the subscriber has to do, is to open an account with his/her nodal office and get a Permanent Retirement Account Number (PRAN).
• It is portable – Each employee is identified by a unique number and has a separate PRAN which is portable i.e., will remain same even if an employee gets transferred to any other office.
• It is regulated – NPS is regulated by Pension Fund Regulatory and Development Authority- External website that opens in a new window, with transparent investment norms & regular monitoring and performance review of fund managers by NPS Trust- External website that opens in a new window.
TAX BENEFITS
Presently, the tax treatment for contribution made in Tier I account is Exempted-Exempted-Taxed (EET) i.e., the amount contributed is entitled for deduction from gross total income upto Rs.1.00 lakh (along with other prescribed investments) as per section 80C (as per the provisions of the Income Tax Act, 1961 as amended from time to time).
The appreciation accrued on the contribution and the amount used by the subscriber to buy the annuity is not taxable. Only the amount withdrawn by the subscriber after the age of 60 is taxable.
sir i want to detail informationb about this
for agency pl cont 9216898999 kk gautam
1. d
2. c
3. b
4. d
5. c
6. d
7. c
8. a
9. b
please correct me, if wrong.
I want to do the schem but ,i cant know how i will do first , pls give me details. thanks
08607678974 pawan kumar
Dear Sir
I am the director of Leading Organisation For rural development( LORD ) ,Dhenkanal,Odisha interested in work with NPS scheme. Please send details information about ngo involved with NPS to our mail id lorddirector@gmail.com
Sir,
I want to franchisee what amount I have to pay for that and what is the procedure.
Telephone: 7415518883, 7509886655
PHONE NO.: -0731-4288473
Registered Head Office: 202, CLASSIC CENTER,IN FRONT OF TI MALL,M.G.ROAD,INDORE ( M.P ), India. – 452001
Sir,
I want to franchisee what amount I have to pay for that and what is the procedure.
Telephone: 7415518883, 7509886655
PHONE NO.: -0731-4288473
Registered Head Office: 202, CLASSIC CENTER,IN FRONT OF TI MALL,M.G.ROAD,INDORE ( M.P ), India. – 452001
I wanted to know the what is the relation of SAGA trip in Swavalamban Yojana. After I joined to Swavalamban Yojana I got a mail from Sagatrip about the joining, even though I didn’t joined. Please give the details about this
I am 41 years old. I am working in private sector. I want to joint Swavalamban scheme (NPS). Please tell me the procedure, so I secure my future.
I am 41 years old. I am working in private sector. I want to joint Swavalamban scheme (NPS). Please tell me the procedure, so I secure my future.call me 9658037037
..
Please details in marathi
May i have please send me total information nps because i dont no about this nps lite programme
i want to join pran kindly give the full details about joining and the amount to pay and the benefits.
Trustee Bank: initially Bank of India now Axis Bank(wef 01/07/2013)
Custodian: Stock Holding India Limited
NPS Trust(share same office with PFRDA same address)
kya mai yah jan sakta hu ki, yah pran card ka kam maharashtra ke liye softconcept company ko diya hai kya
sir,kya shwavalaban me agency lekar mai kam kar sakata hu ,please repplay may email id srv.shekhar2yahoo.com,or call me 08187909555,09670048506,
sir ji this is an education site. this NPS topic is given here for bank/IAS exam preparation. If you have particular querries related to opening NPS agency, i suggest you check their official site.
sir,kya shwavalaban me agency lekar mai kam kar sakata hu ,please repplay may email id srv.shekhar@yahoo.com,or call me 08187909555,09670048506,
sir,kya shwavalaban me agency lekar mai kam kar sakata hu ,please repplay may email id
sir,kya shwavalaban me agency lekar mai kam kar sakata hu ,please repplay may email id pruthvienet@gmail.com
sir i want to take agency of pran account send me detail and eligibility to do this work.
i am in mandya district where i contact about this PRAN CARD
Sir I want take the Agentship to Promote Shwavalaban in the People need as the pension gettin every person. Im now unemployee It useful to growth of my employment oppurtunity.
ThankingSir,
Pls sir give me one answer
why all bank sector unknowledge about NPS. EX- SBI,PNB,CENTER BANK ICICI ETC.
Giveme kannada mahithi
let me know the details vis e-mail
mera age 45 year hai,mai 1000 per month deposit karna chhahta huin
mujhe 15 year bad pension kitna milega please answer
hello sir /medam, nps policy is very use full in villege’s and unemploys and employs but how can days and years running the policy this my dout so ple reply me i will try to joining and more people joining this policy mobile no 8374629882
Sir ji , is plan ke bare me kripya hindi me bataye . Kya mai bhi aam janta tak is ko pahucha sakta hu .
sir kya shwavalaban me agency lekar mai kam ker sakata hu please repply my email id yadavop548@gmail.com call me 8904349304
shwavalaban me agency leme ke sambandh me
I am Interested For Franchaisee or Agent Call me 9049999935
Sir,
NPS me jo frinchig ka chal ra h wah sahi h ya fargi h mujhe bataiye plz call me on -7509886655
Good morning sir, can u give all the detail in hindi
plz give me gujrat baroda office address for swavalamban scheme information and i joining this scheme