Procedure & Subscription How can one contribute to NPS? To contribute in Tier I and Tier II account, the subscriber needs to deposit the contribution amount along with duly filled NCIS (NPS Contribution Instruction Slip) to any POP-SP. How much does a subscriber need to contribute? Subscriber is required to make contributions subject to the following conditions: Minimum amount at the time of Account opening - Rs 500 Minimum amount per contribution - Rs 500 Minimum contribution per year - Rs 6,000 Over and above the mandated limit of a minimum of one contribution, a subscriber may decide on the frequency of the contributions across the year as per his / her convenience. No maximum limit has been mandated. For Tier II, minimum contribution requirements: Minimum contribution at the time of account opening - Rs.1000 Minimum amount per contribution - Rs.250 Maintain minimum balance of Rs.2000 at the end of each financial year. How many contributions to be made? n both Tier I and Tier II account has to be at least one contribution in a financial year. What is Swavalamban Scheme? It is applicable to all citizens in the unorganized sector who can join the NPS administered by the PFRDA. What are the benefits of Swavalamban Scheme? Under the scheme, Govt. will contribute Rs.1000 per year to each NPS account opened in the year 2010-11 and for the next three years. As a special case and in recognition of their faith in the NPS, all NPS accounts opened in 2009-10 will be entitled to the benefit of Government contribution if they fulfill the eligibility criteria prescribed under these guidelines. What is the contribution amount for Swavalamban Scheme? Minimum contribution should be Rs. 1,000 per annum (Financial year) in Tier I account and maximum contribution should be Rs. 12,000 per annum (Financial year) in both Tier I as well as Tier II account together. Who cannot join NPS? The following applicants cannot join: Undischarged insolvent: Individuals who are not granted an ‘order of discharge’ by a court. Individuals of unsound mind: An individual is said to be of unsound mind for the purposes of making a contract if, at the time when he makes it, he is incapable of understanding it and of forming a rational judgment regarding its effect upon his/ her self-interest. Pre- existing account holders under NPS. What is CRA? CRA stands for “Central Record Keeping Agency”; it is the core infrastructure for the National Pension System. It is managed by NSDL & main function is Record keeping, Administration and customer service functions for all subscribers of the NPS. Issuing of unique Permanent Retirement Account Number (PRAN) to each subscriber, maintaining a database of all PRANs issued and recording transactions relating to each subscribers PRAN. How can one exit from NPS before the age of 60? In the event of death of the subscriber, the beneficiary submits a withdrawal request to the associated POPSP who will enter the request in the CRA system. After the request is processed, a cheque is issued favoring the beneficiary and forwarded to the associated POP.