Central Bank of India is a PSU bank which is managed and owned by the Government of India. The bank was formed in the year 1911 and has been offering complete banking solutions to individuals ever since its inception. The bank has also been authorized by the Pension Fund Regulatory and Development Authority (PFRDA) to offer individuals the facility of investing in the NPS scheme through the branches of the bank or through its online web portal.
In this article
The NPS scheme – Overview
The National Pension System (NPS) was launched by the Indian Government as a scheme of retirement planning and pension payments. The scheme has been in effect since 1st May 2009 and is administered and managed by the PFRDA. It is a long term investment scheme through which individuals can accumulate a retirement corpus. Moreover, after maturity, the NPS scheme also offers pension payments at a guaranteed rate throughout the lifetime of the investor. This helps the investor create a regular source of income even after retirement and lead a comfortable life.
Features of NPS scheme
The features of the NPS scheme include the following –
- The scheme is market linked in nature and allows you to earn attractive returns on your investments
- This is a regular investment scheme wherein you are required to make contributions to the NPS account every financial year
- Partial withdrawals are allowed for meeting your emergency financial requirements
- On maturity of the scheme, you can avail up to 60% of the corpus in a lump sum. This lump sum withdrawal would also be free from tax
- There are two types of investment accounts – Tier I and Tier II. Tier I is mandatory if you subscribe to the NPS scheme. Tier II, however, is optional
- There are two types of investment strategies – Active Choice and Auto Choice. Under Active Choice, you manage your investments while under the Auto Choice your investments are allocated in a predetermined manner
- There are four types of investment funds. One is an equity fund, two are debt funds and the last fund is one which invests in alternative investment instruments
- Switching is allowed to change your investment funds and/or your investment strategy
- There are eight pension fund managers to manage their investments. You would have to choose one pension fund manager when investing in the scheme. The fund manager can also be changed during the investment tenure
Eligibility to open Central Bank of India NPS account
In order to invest in the National Pension Scheme in Central Bank of India, the following eligibility parameters would have to be met –
- You should be aged 18 to 60 years
- For opening the Tier I Account, the first contribution should be at least Rs.500. Thereafter, for every contribution, the minimum amount would be Rs.500. You would have to make at least one contribution in one financial year and the account balance at the end of the financial year should be at least Rs.6000
- If you choose to open CBI NPS Tier II Account, the first contribution should be at least Rs.1000. Thereafter, every subsequent contribution should be at least Rs.250 and the account balance at the end of the financial year should be at least Rs.2000. You would be required to contribute at least once every financial year for running the account
- If you open both Tier I and Tier II CBI NPS Accounts, the minimum contribution would be Rs.1500
Documents required for opening Central Bank of India NPS account
To invest in the Central Bank of India NPS scheme, the following documents would be required when applying for the scheme –
- Application form, which would be available online or at the authorized branch of the bank
- Photo identity proof like your Aadhaar card, PAN Card, Voter’s ID Card, driving license, passport, etc.
- Date of birth proof like your Aadhaar card, PAN Card, Voter’s ID Card, passport, birth certificate, etc.
- Address proof like your Aadhaar card, Voter’s ID card, passport, rent agreement, utility bills, etc.
- Coloured photographs
Central Bank of India NPS charges
The bank levies certain charges when you register for the Central Bank of India NPS account and also for subsequent transactions done in the account. These charges are as follows –
- Registration charge – Rs.100
- Ad valorem transaction charge for the first contribution to NPS – 0.25% of the contribution amount subject to a minimum amount of Rs.20 and a maximum of Rs.25,000
- Transaction charge for subsequent contributions – 0.25% of the contribution amount subject to a minimum amount of Rs.20 and a maximum of Rs.25,000
- Any other NPS related transaction excluding contributions – Rs.20
How to open Central Bank of India NPS account?
To invest in the National Pension Scheme in Central Bank of India, you have the following options –
- Investing through the bank’s branch
Central Bank of India has designated 1006 of its branches to act as a POP-SP (Point of Presence Service Provider). You can visit any of these designated branches and apply for an NPS account. At the branch, fill up the application form and attach the relevant documents. Submit the form and the documents and pay the applicable charges for opening then CBI NPS account. Also, pay the initial contribution to open the NPS account. Your application form and documents would be assessed by the bank and if everything is found to be in order, the NPS account would be opened in your name.
- Investing online
Central Bank of India also allows online NPS subscriptions. To do so, visit https://www.centralbank.net.in/jsp/NPS.html and select ‘NPS Registration – Click Here’. A new page would open wherein you should click on ‘Registration’. Provide your details in the registration form and pay the applicable charges and the contribution amount online. Scan and upload your KYC documents to complete the online registration process. The bank would, then, verify your details and open your CBI NPS account when the verification is completed.
Investing in the National Pension Scheme in Central Bank of India is easy but you should know the application steps, the eligibility parameters, charges involved and the documents required so that your application can be processed easily and successfully.