NPS Gives More Power To Pension Savers

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NPS Gives More Power To Pension Savers
NPS Gives More Power To Pension Savers
OLM Desk - 30 November 2022

What Defined 2022?

  • SIP In NPS

One can now start a systematic investment plan (SIP) in NPS through either D-Remit online process or offline process through points of presence (PoPs)

  • Account Opening

An individual can now open an NPS account or modify their existing address using their driving licence stored in DigiLocker. Also, Central Know Your Customer (CKYC) records can be used to open and operate an NPS account

  • Lump Sum Withdrawal

After a one-time online or offline request, NPS subscribers can withdraw lump sum amount on a monthly, quarterly, half-yearly or annual basis for up to 75 years of age

  • Digital Jeevan Praman Patra

After 60 years of age, the option to withdraw and invest a portion in annuity or pension plans from insurance companies is allowed. But insurance companies require a life certificate from the subscriber to continue giving them pension

  • No Separate Form For Buying Annuity

The insurance regulator has done away with the requirement of a separate proposal form for buying annuity products at maturity for NPS investors

  • No Credit Card Payment For NPS Tier-2 Accounts

NPS tier-2 account holders can no longer make contributions to their accounts through credit cards

Tidings For 2023

  • Product Development

Over the years, NPS has become a more customer-friendly and flexible instrument in terms of its features as well as taxability. The product is expected to develop further, with proposals like introduction of guarantees, being discussed in 2022

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