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).
An Overview of 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.
Eligibility for RBL NPS subscription
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.
Subscription to 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.
How Can You Subscribe To NPS Scheme In RBL?
Subscribing to the NPS scheme in RBL is quite simple. Here are a few simple steps to follow –
- You can visit the nearest RBL Bank branch to obtain the subscriber registration form for National Pension System (NPS). You can download the form also online from RBL Bank’s website.
- Fill in the form with all the required details –
- Select your category – Government sector/Corporate sector/ All citizen model/ NPS site/ Swavalamban
- Fill in your personal details – name, date of birth and gender
- Fill in your identity details – PAN, Aadhaar, passport and voter ID
- Fill in your address, contact details, income, educational and income details
- Provide your bank details with MICR and IFSC code
- Mention complete details of your nomination
- Choose your NPS option – Tick if you are opting for tier II account
- Complete ‘Pension fund selection and investment option’ section by choosing your funds, active/auto choice.
- Submit the duly filled and signed NPS subscriber registration form along with KYC documents.
Following are the KYC documents to be submitted-
Proof of identity (photocopy of any one of these)
- PAN Card
- Aadhaar card
- Passport
- Voter’s ID card
- Ration card
- Bank passbook with photograph
- Certificate of RBL bank for an existing bank customer
- Driving license
- Certificate of identity with photograph signed by a Member of Parliament or Member of Legislative Assembly
- Job cards issued by NREGA which is signed by the state government official
- Photo ID card issued by Paramilitary, Defence and Police department
- Photo credit card
- Ex-serviceman card
- ID card issued by a state or central government, regulatory authorities, PSUs and public financial institutions, etc.
Proof of address (photocopy of any one of these)
- Passport
- Aadhaar card
- Ration card
- Bank passbook
- Voter’s identity card
- Certificate of RBL bank for an existing bank customer
- Driving license
- Letter from any recognised public authority at the level of gazetted officer like the divisional commissioner, district magistrate and judicial magistrate, etc
- Job cards issued by NREGA which signed by the state government official
- Certificate of address with photograph signed by a Member of Parliament or Member of Legislative Assembly
- Any document with an address issued by a state or central government, regulatory authorities, PSUs and public financial institutions, etc.
- Latest water or electricity bill
- Latest telephone bill
- The latest property tax receipt
- The valid registered lease agreement
- Fill in NPS contribution instruction slip. Instruction slip can be downloaded from RBL Bank’s website
- Make initial contribution amount. The minimum amount of Rs. 500 to be contributed for tier I account and Rs. 1,500 to be contributed for both tiers I and tier-II account. The cancelled cheque is compulsory for opening NPS tier II account.
Pension Fund Selection and Investment Option in NPS
National Pension Scheme RBL gives you the flexibility to choose from below eight funds –
- SBI Pension Funds Pvt. Ltd.
- LIC Pension Fund Ltd.
- UTI Retirement Solutions Ltd.
- Kotak Mahindra Pension Fund Ltd.
- Reliance Capital Pension Fund Ltd.
- HDFC Pension Management Co. Ltd
- Birla Sun Life Insurance Co. Ltd.
- ICICI Prudential Pension Fund Management Co. Ltd
A maximum of 50% of your contribution can be invested in inequities. As a subscriber, you can choose between two options –
- Active choice: You can distribute your contribution freely under three asset classes – corporate, gilt and equity
- Auto Choice: Depending on your age, investment is made across three funds as per a pre-defined pattern.
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.