Retirement planning is an important aspect of financial planning. For a healthy and happier life after retirement, you need to plan well in advance. There are various retirement plans available to help you build significant wealth and secure your golden days post-retirement. One of the most preferred retirement products among them is the National Pension System (NPS).
National Pension System (NPS) is a voluntary retirement savings scheme sponsored by the government of India. NPS was introduced in 2004 for government employees and then opened to all eligible citizens in India in 2009.
NPS aims to provide an adequate source of income after retirement by allowing you to invest regularly and systematically during your working years. NPS offers you the flexibility to invest your money in a diversified portfolio comprising treasury bills, government bonds, corporate bonds and equities and is being professionally managed by the fund managers.
National Pension System (NPS) is administered and regulated by the PFRDA (Pension Fund Regulatory and Development Authority) under the PFRDA Act 2013. You can subscribe to the National Pension System with PFRDA-appointed Point of Presence –Service Providers (PoP-SP). RBL Bank is also one of the PoP-SP for the NPS, appointed by PFRDA.
Any Indian citizen between the age group of 18 years and 65 years of age and is compliant with Know Your Customer (KYC) norms are eligible to subscribe to the NPS scheme in RBL.
National Pension System allows you to invest via two types of accounts mentioned below.
Tier I is the primary account which is mandatory if you want to avail the benefits of National Pension System (NPS). A unique identification number called Permanent Retirement Account Number (PRAN) will be issued to you when you subscribe to a tier I NPS account. The minimum amount required to subscribe to a tier I account is Rs. 500. Your yearly contribution helps in building a retirement corpus. On attaining the retirement age 60 years, you can partially withdraw the retirement corpus and the remaining can be used for annuity payouts.
There are 8 fund options to choose from to make an investment. You can also choose between active choice and auto choice.
Tier-II account is the voluntary account which you can open only if you have tier 1 account and Permanent Retirement Account Number (PRAN). The minimum investment requirement in this account is Rs. 1,000 and the subsequent investments into the account can start with a minimum investment amount of Rs. 250. The account offers more flexibility in terms of investment and withdrawal.
Subscribing to the NPS scheme in RBL is quite simple. Here are a few simple steps to follow –
Following are the KYC documents to be submitted-
Proof of identity (photocopy of any one of these)
Proof of address (photocopy of any one of these)
National Pension Scheme RBL gives you the flexibility to choose from below eight funds –
A maximum of 50% of your contribution can be invested in inequities. As a subscriber, you can choose between two options –
Subscribing to the NPS scheme in RBL is quite simple and easy. RBL NPS is a cost-effective retirement option that does not help you build a significant retirement corpus.