Pension Fund Regulatory and Development Authority (PFRDA) was established by the Government of India on August 23, 2003 to promote old age income security by establishing, developing and regulating pension funds, to protect the interests of subscribers to schemes of pension funds and for matters connected therewith or incidental thereto.
The NPS is a new vouluntary contributory pension scheme introduced by the Central Government . Under the new pension system , individuals can open a personal retirement account and can accumulate a pension corpus during their work life to meet financial needs post retirement. These contributions would grow and accumulate over the years, depending on the returns earned on the investment made. When the person retires, he will be able to use these savings to take care of the needs and expenses of his family during old age.The subscribers may use the accumulated pension wealth under the scheme to purchase a life annuity from a life insurance company. Alternatively, depending on the age of the subscriber, a part of the wealth may be withdrawn as lump-sum.
ICICI Securities Limited (I-Sec) has obtained the Point of Presence (POP) Registration Certificate from PFRDA to offer NPS accounts. Any individual customer of icicidirect.com desiring to open an NPS account can do so by clicking on �Subscribe NPS� and fulfilling the prerequisite process. The offer document containing details of the NPSfor opening NPS account are available on the website of PFRDA (http://www.pfrda.org.in/) as well as icicidirect.com.
Under NPS, following two types of accounts will be available to you:
Tier I account : You shall contribute your savings for retirement into this non-withdrawable account. Tier I account is available online and you can apply by logging in to your ICICIdirect.com Account (Click "Subscribe NPS" link under the NPS section). You can also open the account by visiting the nearest store of ICICI Direct
Tier II account : This is a voluntary savings facility. You will be free to withdraw your savings/redeem your Tier II units from this PRAN account whenever you wish. To open this account an active Tier I account is a prerequisite.
PFRDA is also offering NPS Swavalamban Scheme - This scheme also known as �Swavalamban Yojna� is a scheme floated by Govt. Of India , which grants an incentive of Rs.1000 to all eligible NPS Accounts. It will be applicable to all citizens in the unorganized sector who join the New Pension System (NPS) administered by the Interim Pension Fund Regulatory and Development Authority (PFRDA).
You can also open the account by visiting the nearest store of ICICI Direct.
Frequently Asked Questions (FAQ's)
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.
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. Contributions made by NRI are subject to regulatory requirements as prescribed by RBI and FEMA from time to time. Presently, I-Sec is offering the NPS product to Resident Indians only.
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
How do I invest in NPS?
To invest in NPS, you will be required to open an account with a Point of Presence (POP) [For instance ICICI Securities Limited ] and obtain a a Permanent Retirement Account Number (PRAN). This is the unique identification number given to your NPS account
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 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 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
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 at anytime before 60 years of age, you would be required to invest atleast 80% of your pension wealth to purchase a life annuity from any IRDA - regulated life insurance company. You may withdraw the remaining 20% of your pension wealth as a lumpsum.
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.
The facility to open Tier II accounts is presently not offered on http://www.icicidirect.com/.
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.
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.
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.
How can I apply for the Tier I and Tier II NPS accounts through http://www.icicidirect.com/?
You can open an online Tier I account by logging in into your http://www.icicidirect.com/ trading / investment account and visiting the "Subscribe NPS" link on the NPS page.
The facility to open an online Tier II accounts is presently not offered on http://www.icicidirect.com/ but will be offered shortly. You may approach our centers to open an offline Tier II account. To open a Tier II account, you must have an active Tier I account.
How will I know my PRAN?
After your NPS / permanent retirement account is opened, CRA shall intimate you about your PRAN by issuing a PRAN allotment letter.
You will also receive a Telephone Password (TPIN) and Internet Password (IPIN). 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 (http://www.npscra.nsdl.co.in/) on a 24 x 7 basis.
Will I get a PRAN Card when I open an NPS account through http://www.icicidirect.com/?
No. If you are opening an NPS account by making an online application on http://www.icicidirect.com/, you will be provided PRAN allotment letter by CRA and not the PRAN Card.
You can apply for the PRAN card by submitting the necessary documents in hard copy/ physical form .
What is the process for applying for a physical PRAN Card when I open an NPS account through http://www.icicidirect.com/?
In case you wish to obtain the physical PRAN card, you will have to submit a duly filled physical PRAN request form available on the "Place Service Request" page of the NPS page and send 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
How will I know about the status of my PRAN application form?
You can track the status of your application by logging in to your http://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, I-Sec shall intimate you of the same through email and also provide the reasons for rejection of your application as provided by the CRA.
Further, I-Sec shall also refund to you, your contribution money together with processing fees and taxes deducted upfront.
How can I make contributions into the NPS Tier I account through http://www.icicidirect.com/?
To make a contribution to your Tier I NPS account, you will need to allocate funds by visiting the "Modify allocations" link of the NPS page of your http://www.icicidirect.com/ account under the option 'MF, IPO, Insurance, NPS and others'.
Are there any conditions for making contributions to the NPS account?
Yes. PFRDA has specified the minimum contribution that is to be made in a financial year 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 year - Rs. 6,000/
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 Balance to be maintained at the end of the Financial Year - Rs. 2,000/-
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.
Can I make contributions to my NPS accounts through the Payment gateway facility on http://www.icicidirect.com/?
No. Presently, Payment Gateway (PG) facility is not enabled for NPS investments. This facility will be offered on http://www.icicidirect.com/ shortly.
Will the government also contribute anything to my NPS account?
No. The Government will not be making any contribution to your NPS account.
The Government of India may however, make contributions to the accounts of NPS account holders who opt for Swavalamban scheme subject to conditions stated in Swavalamban scheme.
The facility to opt for Swavalamban scheme is presently not offered on http://www.icicidirect.com/.
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 per year of default and further CRA will mark your NPS account as dormant on the last date of that financial year.
2. To reactivate your account, you will have to pay the aggregate of the outstanding amount of the minimum contribution due for each year that your account is dormant and the applicable penalty amount per year. For instance, if your account has become dormant due to non payment of minimum contribution and you have already contributed say Rs. 3000/- during the year to your NPS account. Now, to reactivate your account, you will have to contribute the outstanding minimum contribution ie Rs. 6,000/- less Rs. 3000/- = Rs. 3000/- plus penalty of Rs. 100/-
3. 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.
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.
Can I transfer my savings amount from NPS Tier II account to NPS Tier I account or vice versa?
No. You cannot transfer savings from one NPS account to the other.
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 Charge Head Service Charges * Method of Deduction
CRA PRA Opening Charges Rs.50 Through Cancellation of units
Annual PRA maintenance cost per account Rs.350
Charge per transaction Rs.10
POP (maximum permissible charge for each subscriber) Initial Subscriber registration and contribution upload Rs.40 To be collected upfront
Any Subsequent Transaction** Rs.20
Trustee Bank, Custodian and PFM will charge prescribed fees in addition to the above by way of adjustment in the net Asset Value (NAV) of the fund.
*Service Tax and other levies, as applicable, will be levied as per existing laws in addition to the above charges.
** These include
1. Regular Subscriber's contribution
2. Change in subscriber details
3. Change of investment scheme/ fund manager
4. Processing of withdrawal request
5. Processing of request for subscriber shifting
6. Issuance of printed account statements
7. Any other subscriber services as may be prescribed by PFRDA
8. The charges levied by CRA are subject to change depending on the number of accounts created as per the table mentioned below:
No. Particulars Annual PRA maintenance cost per account Charge per transaction Remarks
1 Upto 9,99,999 accounts Rs.350 (exclusive of Service Tax and other Charges) Rs.10 The charges include for maintaining
2 Between 10,00,000 to 29,99,999 accounts Rs.280 (exclusive of Service Tax and other Charges) Rs.6
3 30,00,000 accounts and more Rs.250 (exclusive of Service Tax and other Charges) Rs.4
The fee structure may change as may be decided by the PFRDA/ NPS Trust from time to time
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 contribution amount and the balance amount will be invested in your NPS account.
Please login to your http://www.icicidirect.com/ trading / investment account and refer NPS Service Charges link for further details.
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 6 PFM identified by PFRDA.
Can I select more than one PFM to manage my savings?
No. You can select only one PFM.
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 http://www.icicidirect.com/ too
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
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.
Can I change my investment choice ?
Yes, you can change your Investment Option [Active or Auto].
However, these changes can be made only during the period as specified by CRA / PFRDA. PFRDA will announce the period (from and to dates) during which you can make the said changes. We will intimate clients of such processes after the same is finalized by CRA.
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.
The returns earned by the PFM on the scheme selected by you will be credited to your account.
Kindly refer the NPS Tier I Offer Document for details on the risks associated with your investments.
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
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".
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).
Can I change the Pension Fund Manager for my pension savings?
Yes, you can change your Pension Fund Manager .
However, these changes can be made only during the period as specified by CRA / PFRDA. PFRDA will announce the period (from and to dates) during which you can make the said changes. We will intimate clients of such processes after the same is finalized by CRA.
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.
Who are the Annuity Service Provider for NPS accounts?
PFRDA is in process of appointing the Annuity Service Provider(s) for the NPS accounts. Upon appointment of the same, you will be able to select any Annuity Service Provider for your account as per your choice at the time of withdrawal of contribution from your NPS Tier I account or on attaining 60 years of age.
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. The link to the page is also available on the "Unit Holdings" link on NPS page of your http://www.icicidirect.com/ trading / investment account.
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.
Are there any conditions / formalities to be completed for withdrawing money from my NPS Tier I account?
Yes. 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 atleast 40 % of your accumulated savings (pension wealth) to purchase a life annuity from any IRDA - regulated life insurance company.
You may choose to purchase an annuity for an amount greater than 40%. The remaining 60 % of your pension wealth can either be withdrawn in lump sum on attaining the age of 60 or in a phased manner, between age 60 and 70, at the option of the subscriber. In case you opt for phased withdrawal, please note: 1. Minimum 10% of the pension wealth should be withdrawn every year 2. Any amount lying to the credit at the age 70 should be compulsorily withdrawn in lumpsum
Death due to any cause In such an unfortunate event, option will be available to the nominee to receive 100% of the NPS pension wealth in lump sum. However, if the nominee wishes to continue with the NPS, he/she will have to subscribe to NPS individually after following due KYC procedure.
What will happen to my savings if I decide to retire before age 60?
To withdraw from your Tier I account at anytime before 60 years of age, you would be required to invest atleast 80% of your pension wealth to purchase a life annuity from any IRDA - regulated life insurance company. You may withdraw the remaining 20% of your pension wealth as a lumpsum.
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 http://www.icicidirect.com/.
How can I register a SIP request for my NPS investment?
To place a SIP request, you will have to login to your http://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.
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.
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.
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.
Can I appoint nominees for the NPS Tier I Account?
Yes. You can appoint upto 3 nominees for your NPS Tier I 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%.
What is the process for making a nomination on http://www.icicidirect.com/?
The process of nomination has been included in the registration process on http://www.icicidirect.com/. At the time of applying for registration on http://www.icicidirect.com/, the system will ask you to choose the option for making a nomination.
The online NPS registration process on http://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.
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 of your account & update nominations details.
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 http://www.icicidirect.com/ trading / investment account.
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.
What is the transmission process to be followed by a nominee in case of death of the NPS account holder?
Incase 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 may continue with NPS .
In case the nominee (s) opt to withdraw the pension wealth, the nominee (s) are required to submit the withdrawal request to CRA directly with the supporting documents specified in the withdrawal request form.
However, if the nominee wishes to continue with the NPS, he/she will have to subscribe to NPS individually after following due KYC procedure.
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 indicate their nominee. CRA is in the process of defining the procedure for transmission in case of NPS account holders who have not selected a nominee.
We will intimate clients of such process after the same is finalized by CRA.
In such cases, the legal heir of the deceased NPS account holder may approach CRA for guidance regarding withdrawal of the pension wealth.
How do I place various NPS related service requests on http://www.icicidirect.com/
You can place a service request by visiting the "Place Service Requests" option on the NPS page of your http://www.icicidirect.com/ trading / investment account.
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 http://www.icicidirect.com/ trading /Investment Account. Once the same is done, I-Sec shall forward the request to CRA for updation in your NPS account also.
Click here to know the process for updating your address in your http://www.icicidirect.com/ account.
How can I raise my queries / complaints for matters relating to my NPS accounts / savings?
In case of any queries / complaints for matters relating to your NPS account(s) , please feel free to contact us at our Click here to get our Customer Care Number.
You may also walk in to your nearest ICICIDirect centre to seek clarifications / express your grievances.
Alternatively, you can write to us at the below address by filling the Subscriber Grievance Registration form
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
Pease ensure that you have mentioned your PRAN in your grievance letter.
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 or by registering the grievance on http://www.npscra.nsdl.co.in
