Yes Bank is a private banking institution which was formed in the year 2004. The bank offers banking solutions to retail customers, MSMEs as well as corporates. Among the different types of banking products offered by Yes Bank, the NPS scheme is one such product that is available for retail as well as corporate customers of the bank.
What is the NPS scheme?
The National Pension System, or NPS scheme, was launched by the Government to promote retirement savings among individuals. Initially, the scheme was targeted at Government employees only but later, in 2009, the scheme was made public to all. The NPS scheme is a defined contribution pension scheme that is market-linked in nature allowing you to accumulate a good corpus for your retirement with regular savings.
Yes Bank NPS scheme
The Pension Fund Regulatory and Development Authority (PFRDA) administers the NPS scheme and appoints financial institutions which can allow individuals to invest in the scheme. Yes, Bank is one such bank that has been appointed by the PFRDA to offers NPS investments to individuals. You can, therefore, apply for NPS scheme in Yes Bank through the specified branches of the bank. Yes, Bank has designated branches that serve as POP-SPs (Point of Presence Service Providers) and through which you can open a Yes Bank NPS account. The list of these branches is available on the website of the company at the link https://www.yesbank.in/personal-banking/yes-individual/wealth-management/national-pension-system-nps/list-of-authorised-yes-bank-branches.
To apply for the NPS scheme in Yes Bank, here are the steps which you should take –
- Locate the nearest branch of the bank which is the POP-SP for NPS investments
- Visit the branch and fill up the subscriber registration form which is available there. You should provide complete information in the form and fill it completely to avoid any problems in the account opening
- Also, fill up the NPS Contribution Instruction Slip (NCIS) which is available at the branch. Provide the details of your investment in this slip
- Attach your KYC documents and two coloured photographs to the form and the NCIS and submit it at the branch
- Make payment for the amount of contribution which you want to make to open the Yes Bank NPS account and also for the charges applicable for the registration process
- Once you complete these formalities, your NPS account would be opened and you would get a PRAN number (Permanent Retirement Account Number)
- You can, thereafter, continue making the contributions through Yes Bank every financial year
Eligibility criteria for NPS investments
To subscribe to the National Pension Scheme, Yes Bank has some eligibility criteria which you should fulfil. Only those individuals who fulfil the eligibility criteria would be allowed to open a Yes Bank NPS account. The required eligibility criteria are as follows –
- You should be an Indian citizen, whether resident or non-resident
- You should be aged between 18 and 65 years
- You should not be a Government employee who is mandatorily covered under the NPS scheme
- You should be KYC compliant as stated in the KYC norms of the bank
- You can join the NPS scheme in Yes Bank either as an individual or under an employer-employee group
- You should make the minimum contribution of Rs.500 to open Tier I Account
- If you also want to open a Tier II Account, you should make a minimum contribution of Rs.1000 to open the account
- There is no limit on the maximum amount of contribution which you can make
- For KYC documents, you should submit your identity proof, age proof and address proof
Charges under Yes Bank NPS scheme
The bank levies charges when you subscribe to the NPS scheme. Some charges are one-time charges while some are regular charges. The list of these charges is as follows –
|Type of charge||Amount|
|Registration charge levied by Yes Bank||Rs.200 payable one time when registering|
|Contribution processing charge levied by the bank||0.25% of the contribution amount every time the contribution is made. The minimum charge is Rs.20 and maximum is Rs.25,000|
|Non-financial transaction processing charge levied by Yes Bank||Rs.20 for any non-financial transaction request made|
|Persistency charge levied by Yes Bank||Rs.50 every year|
Details about NPS investments
Here are some of the investment details of Yes Bank NPS scheme which you should know about –
Types of accounts
There are two types of Yes Bank NPS accounts. They are as follows –
- Tier I Account – this is a compulsory account which does not allow withdrawals except under special circumstances. Investments into this account earn you tax benefits under Section 80CCD (1) and (1B) up to a maximum of Rs.2 lakhs. A minimum contribution of Rs.1000 should be done in one financial year.
- Tier II Account – this is a voluntary investment account which you can open for additional investments. The tax benefit is not available on investments into this account and this account allows free withdrawals. For Government employees, however, investment into Tier II Account, up to Rs.1.5 lakhs is allowed as a deduction under Section 80C provided that there is a lock-in period of 3 years.
Types of investment options
There are two types of investment options for you to choose from. They are as follows –
- Active Choice – under this option you can invest your money in any of the four available investment funds. You can invest as per your risk appetite and also switch between the funds as and when required.
- Auto Choice – under this option you have to choose your risk appetite. There are three risk appetite options – Conservative, Moderate and Aggressive. Based on the option selected, your investment would be allocated to equity and debt funds in a pre-defined ratio.
Pension fund managers
There are eight pension fund managers and you can choose anyone for managing your investments. You can also change the selected pension fund manager over the investment period if you want.
Your investments would, then, grow with the growth in the financial markets and you can accumulate a corpus for your old age. On maturity, you can commute 60% of the corpus in a lump sum which is tax-free. The remaining corpus would be used to pay pensions at a guaranteed rate. There are different types of pension payment options and you can choose any one option to receive lifelong pensions.
The NPS scheme is, therefore, a beneficial scheme which helps you accumulate a retirement fund and also avail lifelong incomes. Yes, Bank allows NPS investments and you can invest in Yes Bank NPS scheme through the bank’s branches by following the afore-mentioned process.