→ The National Pension System (NPS) is a Government offered retirement cum pension scheme. By investing in NPS, the investors get the dual benefit of tax-saving & retirement planning.
→ Contribution towards an NPS account provides a benefit to individuals by way of a deduction under Section 80C. Not just it secures your retirement planning, but it also saves taxes of up to ₹ 1,50,000 a year.
→ The best part is both Private & Government employees can invest in this retirement planning scheme. In recent months there have been few changes by the Pension Fund Regulatory & Development Authority (PFRDA) in NPS. Let’s see what are these major changes.
1. Transaction in NPS via NACH Mandate :
PFRDA has enabled the National Automated Clearing House (NACH) mandate in NPS transaction in order to curb the existing challenges in fund transfer process. With the help of the NACH mandate, the complete transaction process will become digital for Point of Presence (PoP) & other NPS distributors. PFRDA introduced NACH mandate jointly by Trustee Bank & Central Record Keeping through National Automated Clearing House operated by National Payments Corporation of India.
2. Withdraw Entire Accumulated Pension Wealth :
Now on maturity, the PFRDA has allowed NPS subscribers to withdraw the entire accumulated pension wealth without purchasing annuity if the pension amount is less than ₹ 5 lakh. Currently, the person can withdraw up to 60% of the amount accumulated in the account, while the rest 40% is used to purchase an annuity plan
3. Relaxation in Timelines :
PFRDA has relaxed timelines for activities under NPS & NPS Lite- Swavalamban scheme amid the second wave of the COVID pandemic. Point of Presence (POPs) are advised to undertake NPS related activities within prescribed Turn Around Time (TAT) under the Pension Fund Regulatory & Development Authority (Point of Presence) Regulations, 2018 & guidelines issued there-under, in order to ensure timely & efficient service to subscribers, this the pension regulator mentioned.
4. Partial Withdrawal via self-declaration :
In order to ease the process of partial withdrawal & make it simple, online & paperless in the of the NPS subscribers, it was decided to allow them the partial withdrawal based on self-declaration & thereby doing away with the submission of supporting documents to substantiate the reason for partial withdrawal.
5. Deposit contributions under D Remit :
National Pension System (NPS) subscribers can deposit contributions into their accounts under D Remit (or direct remittance) using IMPS. The pension regulatory said, "PFRDA is pleased to announce the enablement of contribution by subscribers into D Remit by using Immediate Payment System (IMPS), the instant fund transfer facility provided by National Payment Corporation of India (NPCI).
PFRDA has enabled the National Automated Clearing House (NACH) mandate in NPS transaction in order to curb the existing challenges in fund transfer process. With the help of the NACH mandate, the complete transaction process will become digital for Point of Presence (PoP) & other NPS distributors. PFRDA introduced NACH mandate jointly by Trustee Bank & Central Record Keeping through National Automated Clearing House operated by National Payments Corporation of India.
2. Withdraw Entire Accumulated Pension Wealth :
Now on maturity, the PFRDA has allowed NPS subscribers to withdraw the entire accumulated pension wealth without purchasing annuity if the pension amount is less than ₹ 5 lakh. Currently, the person can withdraw up to 60% of the amount accumulated in the account, while the rest 40% is used to purchase an annuity plan
3. Relaxation in Timelines :
PFRDA has relaxed timelines for activities under NPS & NPS Lite- Swavalamban scheme amid the second wave of the COVID pandemic. Point of Presence (POPs) are advised to undertake NPS related activities within prescribed Turn Around Time (TAT) under the Pension Fund Regulatory & Development Authority (Point of Presence) Regulations, 2018 & guidelines issued there-under, in order to ensure timely & efficient service to subscribers, this the pension regulator mentioned.
4. Partial Withdrawal via self-declaration :
In order to ease the process of partial withdrawal & make it simple, online & paperless in the of the NPS subscribers, it was decided to allow them the partial withdrawal based on self-declaration & thereby doing away with the submission of supporting documents to substantiate the reason for partial withdrawal.
5. Deposit contributions under D Remit :
National Pension System (NPS) subscribers can deposit contributions into their accounts under D Remit (or direct remittance) using IMPS. The pension regulatory said, "PFRDA is pleased to announce the enablement of contribution by subscribers into D Remit by using Immediate Payment System (IMPS), the instant fund transfer facility provided by National Payment Corporation of India (NPCI).
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