The Government of India established the NPS Lite. It is a pension plan for low-income people. There are 76 entities that are authorized to act as NPS Lite Aggregators. The Government of India established NPS Lite, a low-income pension system, to enhance the welfare of the economically disadvantaged. This scheme provides retirement benefits to millions of people who are not covered by standard retirement schemes and plans. It is suitable for the hardworking worker from the unorganized sector because of its high returns and inexpensive investment alternatives. Subscription to this plan is available through a list of aggregators that cater exclusively to the needs of the low-income segment.
Function of Aggregators
Through their NLOO/NLAO/NLCCs, the Aggregator shall perform the following functions:
|A. Compliance:||The aggregator shall ensure that all transactions by subscribers are maintained and reported in compliance with the requirements of the Prevention of Money Laundering Act, 2002, including modifications and rules established thereunder from time to time, as applicable.|
|B. Subscriber Servicing||The NPS-Lite system is intended to keep track of subscribers who have enlisted in NPS-Lite/Swavalamban at the time of contribution processing. The following services are available to NPS-Lite members from Aggregator:
1. Aggregator shall carry out changes in subscriber details if the subscriber has made a request by submitting the subscribers details change request form, as prescribed by PFRDA, for all changes as listed below to be implemented in the NPS-Lite system on a T+5 basis, where T is the date of receipt of the request:
Name Change: Prescribed supporting papers must be supplied, as well as a copy of the PRAN card.
Address Update: Appropriate supporting papers and a copy of the PRAN card must be supplied.
No further papers are necessary for the update of phone numbers, mobile phone numbers, and email addresses.
Update of the subscriber’s bank details: All necessary supporting papers must be supplied along with a copy of the PRAN card. In the event of bank details, the Aggregator should check that the Subscriber’s bank data are complete and that the details (bank name and bank account number) match the bank details supplied in the form.
Changes to the nomination’s specifics: a copy of the PRAN card
Switch/Scheme preference change request of the subscriber.
2. The aggregator shall accept withdrawal requests from subscribers and submit them by logging into NPS Lite on a T+5 basis, where T is the date of receipt of the request.
3. The aggregator will respond to the subscriber’s request for PRAN card re-issuance on a T+5 basis, where T is the date of receipt of the request.
|C. Subscription contribution processing||1. Acceptance of contribution: Following the collection of contributions, the Aggregator issues a receipt (ideally an electronic receipt) to the NPS-Lite/Swavalamban subscriber with the relevant acknowledgment number.
2. Deposit of contribution amount: On a T+1 basis, the Aggregator should deposit the contribution collected from the subscriber (cash/cheque) by the collecting center into their collection account. (T is the day on which the Aggregator collects money from the subscriber.)
3. Upload of SCF: After receiving clear funds, the Aggregator must create and upload SCF into the CRA system on or before T+2, where T is the date of receipt of clear funds by the Aggregator.
4. Remittance to Trustee Bank: On T+2, the Aggregator shall transfer the money to the NPS Trust account held with Trustee Bank, where T is the date of Aggregator’s receipt of cleared funds.
|D. Grievance Redressal:||1. Internally, Aggregator should establish an adequate Grievance Redressal Mechanism in accordance with the PFRDA (Redressal of Subscriber Grievances) Regulations, 2015 for resolving concerns regarding the services provided to NPS-Lite/Swavalamban subscribers. The subscriber shall be given the name and phone number of the aggregator’s authorized Grievance Redressal officer. The appointed officer is responsible for ensuring that subscriber concerns are properly addressed.
2. If a consumer believes that his or her complaint has not been resolved properly, he or she may contact the Oversight office (NLOO) and Accounting office (NLAO) of the relevant aggregator for a redress of his or her grievance.
3. Aggregator should perform the following actions in relation to receiving, entering grievances in NPS-Lite, verifying and resolving grievances from subscribers and other NPS-Lite Intermediaries:
a. Receiving grievances submitted by subscribers against Aggregator or any other NPS Intermediary in a specified manner and daily uploading of all grievances in the CRA light Central Grievance Management System (CGMS). The CRA light CGMS system would send the complaints to the appropriate NPS intermediates.
NPS Contact Number
Individuals who have questions or want more information about the plan should call the scheme’s toll-free number, 1800 110 708. They can also dial 1800 222 080 to reach the CRA phone center.
NPS Lite Aggregators List
A total of 76 entities have been authorized to act as NPS Lite aggregators, the full list of which is provided below.
- Union Bank of India
- United Bank of India
- UTI Infrastructure Technology and Services Ltd
- Vijaya Bank
- The South Indian Bank Ltd
- UCO Bank
- State Bank of Patiala
- State Bank of Travancore
- Swayamshree Micro Credit Services
- Syndicate Bank
- Sarva Haryana Gramin Bank
- Shree Kshetra Dharmasthala Rural Development Project
- Shri Mahila Sewa Sahakari Bank Ltd
- Society for Elimination of Rural Poverty
- State Bank of Bikaner and Jaipur
- State Bank of Hyderabad
- State Bank of India
- State Bank of Mysore
- Samhita Community Development Services
- Saptagiri Grameena Bank
- Saptrishi Consultancy Services Ltd
- Oriental Bank of Commerce
- Pallavan Gramin Bank
- Parvatiya Gramin Bank
- Puduvai Bharathiar Grama Bank
- Punjab and Sind Bank
- Punjab National Bank
- Margdarshak Financial Services Ltd
- Nainital-Almora Kshetriya Gramin Bank
- North Malabar Gramin Bank
- Karnataka State Unorganised Workers Social Security Board, Bangalore
- Karnataka Vikas Gramin Bank
- Krishna Grameen Bank
- LIC Housing Finance Ltd
- LIC of India
- Madhya Bihar Gramin Bank
- Janlakshmi Financial Services Pvt Ltd
- Jhabua Dhar Kshetriya Gramin Bank
- Jharkhand Building and other Construction Workers Welfare Board, Ranchi
- India Infoline Finance Ltd
- Indian Bank
- Indian Overseas Bank
- IDBI Bank Limited
- Indur Intideepam MACS Federation Limited
- Jagaran Microfin Pvt Ltd
- Gujarat Infotech Ltd
- IFMR Holdings Pvt Ltd
- IL&FS Securities Services Ltd
- Corporation Bank
- CSC E-governance Services India Ltd
- Dena Bank
- Department of Women and Child Development, Government of Karnataka
- ESAF Microfinance and Investments Pvt Ltd
- Grameen Financial Services Pvt Ltd
- Cashpor Micro Credit
- Central Bank of India
- Centre for Development Orientation and Training (CDOT)
- Bank of Maharashtra
- Baroda Gujarat Gramin Bank
- Baroda Rajasthan Kshetriya Gramin Bank
- Building and other Construction Workers Welfare Board, Rajasthan
- BWDA Finance Ltd
- Canara Bank
- Bandhan Financial Services Pvt Ltd
- Bank of Baroda
- Bank of India
- Allahabad Bank
- Allahabad U.P Gramin Bank
- Assam Gramin Vikash Bank
- Andhra Bank
- Axis Bank Ltd
- Banaskantha Dist. Co-op Milk Producers Union Limited
- Abhipra Capital Ltd
- Adhikar Microfinance Private Limited
- Alankit Assignments Ltd
- A.P Building and other Construction Workers Welfare Board
FAQs on NPS Lite
Q1. Who is an NPS Lite subscriber?
Subscribers between the ages of 18 and 60 can join NPS – Lite through the aggregator and contribute until they reach the age of 60.
Q2. Is there a difference between NPS and NPS lite?
NPS Lite, an offline service, is intended to keep administrative and transactional costs to a minimum for investors. Swavalamban (self-reliance) advantages are provided by both NPS and NPS Lite. NPS-Lite allows subscribers to contribute as little as Rs. 100 per month.
Q3. Who Introduced NPS?
The Central Government implemented the National Pension System (NPS) on January 1, 2004. (except for armed forces). The Pension Fund Regulatory and Development Authority (PFRDA), the NPS’s regulatory authority, has chosen NSDL as the National Pension System’s Central Recordkeeping Agency (CRA).
Q4. What does a Tier 1 NPS account mean?
Tier 1 NPS accounts are the most basic type of NPS account. Employees in both the public and commercial sectors are able to participate in the NPS. These accounts allow investors to deposit as little as Rs 1,000 each year. Section 80CCD allows investors to claim an extra tax deduction of Rs 50,000. (1B)
Q5. Can money be withdrawn by NPS?
When an NPS member achieves the age of superannuation, i.e., 60, he or she can take 60% of the accrued corpus as a lump payment tax-free. However, if the total cumulative pension corpus is less than or equal to 2 lakh, a subscriber may withdraw the whole lump sum payment.