SBI National Pension Plan

National Pension Plan scheme is a social security scheme of Indian government. It is a contributory system which provides market linked returns to the pensioner. Initially pension was meant for only government employees now private sector employees and self employers can also receive pension. The amount they contribute is stored in national pension account. Every pensioner is allotted a permanent retirement account number by central record keeping agency. The money invested earns market returns until maturity date. Certain percentage can be withdrawn after retirement. The national pension scheme account can be opened at point of presence service provider bank which is provided by SBI. Initially we need to submit the application form and documents required to SBI

Types of SBI NPS accounts

There are two types of account variants

Tier 1 account

It is an elementary premium account which everyone needs to open to apply for national pension scheme. You cannot withdraw the amount till the maturity date that is till the account holder is 60 years of age. The pensioner should annuitize 40% of the accumulated pension. The remaining 60% can be commuted or withdrawn in lump sum. The pensioner can withdraw up to 25% after completing 10 years. However this account is mandatory for every pensioner

Tier 2 account

This type of account is opened on a voluntary basis for investment purposes. In tier 2 account you can withdraw amount during any time and there is no limit for withdrawal.  You will have a lower minimum contribution and minimum account balance.

Features of National Pension Plan

  • National pension scheme account can be opened any branch of state bank


    National pension scheme can be extended 70 years of age

  • A total of 40% of pension is tax free

  • Unilateral transfer of funds are allowed between tier 1 and tier 2

  • A low cost investment scheme is charged for 0.01%

  • Partial withdrawal of 25 % is allowed in tier 1 after 3 years

  • In tier 2 there is no restriction in withdrawing amount

  • Standing instruction facility is available for all pensioners

  • On superannuation one time transfer is also available

  • When the total amount is less than 2lacs you can withdraw the amount

  • This scheme is flexible that is the customer can choose between various options available

National Pension Scheme for NRI’S

National pension scheme can be opened for non resident Indians except overseas citizen of India and persons of Indian origin. NRI can apply for tier account and enjoy all benefits. While opening an account, NRI can appoint a nominee that nominee will receive the accumulated pension in case of death. The pension will be paid in Indian rupee. You can choose between repatriation and non repatriation account. For repatriation account contribution can be made through non resident rupee account. For non repatriation account contribution can be made through non resident ordinary account. But we cannot shift this option.

Eligibility criteria for Pension Scheme

  • The applicant should be an Indian citizen aged between 18-65

  • In case of NRI should be aged between 18 to 65

  • Know your customer process should be completed before opening of account

  • NRI cannot avail tier 2 account

  • Tier 2 account can be opened only if the customer has tier 1 account

Application process for NPS account

  • Go to the official website of national pension system

  • Select registration option and you will find online subscriber registration page

  • Now you can start registering and enter the required details like name, age and pan number

  • You need select state bank of India among the list of banks

  • To your registered mobile number you will receive an OTP

  • After entering the personal details you need to generate acknowledgement number

  • You need to select auto mode of investment or active mode of investment

  • Later you need to assign nominees to receive your pension

  • Later upload a passport size and scanned image of signature

  • Pay the initial subscriber contribution through online mode and PRAN number will be generated.  Finally enter  OTP to get your AADHAR authenticated

  • Documents required to open national pension account are aadhar card, pan card, passport size photo, signature and address proof

  • For NRI you would require a copy of your passport, address proof and passport size colour photo

FAQs

Q1.What is NPS?

National pension scheme is a social security scheme offered by the government they provide pensions for retired individuals

Q2. What are the benefits of NPS?

Ans- Pensions play an important role after retirement. They are received on a monthly basis. They can be used for long term purposes and the application process is also simple

Q3. What are Tier 1 and Tier 2 accounts?.

Ans- Tier 1 account is mandatory for every individual while tier 2 account is opened on a voluntary basis

Q4. What is the minimum and maximum age?

Ans- The applicant’s age should be from 18 to 65 years of age

Q5. How to pay premium?

Ans- You can pay premium through online mode. You can pay through credit card, debit card and neft. Premium is the monthly payment payed by the customer

Q6. How to check the policy status?

Ans- The policy status can be cheeked through the website of SBI national pension scheme

Q7.What is renewal and cancellation process?

Ans- Your policy can be renewed by entering the policy details and your policy number in the renew option. In the SBI website there will be an option for cancellation in the tab.