New Pension Scheme (NPS)

Allahabad Bank has been appointed as one of the Point of Presences (PoP) for the New Pension System launched on 1st May 2009 by the Government of India. The scheme promoted by the Pension Fund Regulatory and Development Authority (PFRDA).

NPS – An Overview

  • Pension fund Regulatory and Development Authority (PFRDA) has been established by the Government of India to promote old age income security.
  • The Government of India authorized PFRDA to extend NPS on a voluntary basis to all citizens of India including workers of the unorganized sector.
  • NPS is now available to all citizens of India with effect from 1st May 2009, other than Government employees already covered under NPS.

NPS – Salient Features

  • Any Citizen of India, whether resident or non-resident, between 18-60 years of age as on the date of submission of his/her application.
  • To enroll in the NPS a person need to submit the Subscriber Registration Form (UOS-S1) to the any of the 35 designated Branches of our Bank.
  • Types of Accounts
  • Tier I Account – It is a mandatory Savings account. Individual can contribute their savings for pension benefit after retirement into this non-withdrawal account. Minimum contribution requirement per annum into this account is Rs. 6000/-
  • Tier II Account – In addition to the mandatory savings through Tier – I account individuals are free to invest in the Tier – II account. The minimum amount of contribution is Rs. 500/- and there is no maximum limit. The individual can withdraw the amount of savings in Tier – II account at any time whenever required.

Contribution

  • Minimum amount per contribution – Rs. 500/-
  • Minimum contribution per year – Rs. 6,000/-
  • Minimum number of contributions – 1 or more
  • The subscriber can contribute the amount through cash, local cheque or demand draft.
  • No outstation cheques shall be accepted.
  • There is no limit of maximum contribution.

Pension Fund Managers

  • ICICI Prudential Life Insurance Company Limited
  • IDFC Pension Fund Management Company Limited
  • Kotak Mahindra Pension Fund Limited
  • Reliance Capital Pension Fund Limited
  • SBI Pension Funds Private Limited
  • UTI Retirement Solutions Limited.

Investment Options

  • Active Choice – A subscriber will have the option to actively decide as how the NPS pension wealth is to be invested in the following three options :
  • Asset Class E – Investment in predominantly equity market instruments.
  • Asset Class C – Investment in fixed income instruments other than Government securities.
  • Asset Class G – Investments in Government securities.
  • Auto Choice –This offers an easy option for those subscribers who do not have the required knowledge to manage their NPS investments.

Service Charges

Service Charges Method of Deduction
Initial Subscriber Registration Rs.200/- To be collected Upfront
Initial Contribution 0.25% of the Contribution Min.Rs.20/- & Max Rs.25,000/-
All Subsequent contribution
All Non-Financial Transaction Rs.20/-
Persistency Rs.50/- per annum (only for NPS –All Citizen) Through cancellation of units
e-NPS(for subsequent contributions) 0.10% of the contribution Min Rs.10/- & Max Rs.10,000/-(Only for NPS AllCitizen and Tier Upfront from subscriber

System of payment of pension

  • The NPS account subscriber will be paid 60% of his savings in NPS account after attaining the age of 60 years and rest 40% of his savings in NPS account the investor has to purchase annuity policy from the Life Insurance Company of the applicant choice.
  • The Life Insurance Company will pay the monthly pension for rest of the life.
  • To know more please contact for your queries in this regard at (033) 2210 4755. e-mail Id ho.mktg[at]allahabadbank[dot]in