NPS - Personal Banking

Eligibility

• Individuals aged between 18-85 years
• All citizens of India including RIs and Non-Resident Indians (NRIs)
• Individuals covered under any pension scheme.

Benefits of investing in NPS for securing Post Retirement Life

Tax Benefit available under Tier I Account:

• Sec. 80 C Max. Rs. 1.50 Lacs (including other eligible Investments of 80C) (Old Tax Regime)
• Sec.80CCD (1B) Rs. 50,000 (Exclusive for NPS) (Old Tax Regime)
• Exclusive Tax Benefits on NPS Contributions by Employer
• Sec. 80CCD(2) The individual gets tax benefits on contributions made and borne by the employer
• Under Corporate sector model: Contribution made and borne by employer of up to New Tax Regime10% of Salary (Basic and DA) in the Old Tax Regime and up to 14% of Salary (Basic and DA) in the New Tax Regime towards NPS is eligible for additional tax deduction under section 80 CCD (2) of the Income Tax Act, 1961*

*Kindly note that all contributions by both Employee & Employer under all the sections listed for tax benefits have a maximum limit of ₹7.5 lakhs that include contribution to PF, Superannuation Fund and NPS under Old Tax Regime. However, under new tax regime, the entire limit of Rs. 7.5 lakhs is available under section 80CCD(2)

Exit Option under Tier I :

• On attaining age of 60 years :
  • Min. 20% of the corpus needs to be invested in Annuity Scheme
  • 80% of the corpus can be commuted/withdrawn in lump sum/ staggered anytime upto age of 85 yrs; Amount is tax free.
  • If total corpus is equal or less than Rs. 8.00 Lacs, then entire corpus can be withdrawn
• Before 60 years of age :
  • 20% of the corpus can be withdrawn in lump sum
  • 80% of the corpus will be invested in a ‘Annuity Scheme’
  • If total corpus is equal or less than Rs. 5 Lacs, then entire corpus can be withdrawn

Part Withdrawals under Tier I :

• A partial withdrawal of accumulated pension wealth, not exceeding 25% of the employee contributions, after a lock in period of 3 years.
• Allowed to withdraw only a maximum of four (4) times during the entire tenure subject to conditions prescribed by the Regulator.

How to make subsequent contributions

Subscribers can apply for NPS through the below mentioned routes:

• Online Mode: Subscriber may visit https://www.onlinesbi.sbi.bank.in/ and available under ‘Deposit & Investment’. It is also available under ‘Investment/NPS Contribution’ menu at YONO.
• Subscriber may visit nearest registered State Bank of India branch for NPS and submit NPS Contribution Instruction Slip (NCIS) along with the contribution amount.

Standing Instruction (SI)

Standing Instruction (SI) functionality is available to average cost of purchase just like Systematic Investment Plan (SIP) facility in Mutual Funds. Interested subscribers can give SI/ Auto Debit instructions for processing their monthly contributions either online under ‘Deposit & Investment’ menu available at https://www.onlinesbi.sbi.bank.in/ or under ‘Investment/NPS Contribution’ menu at YONO or by submitting physical request form to a registered Bank branch for NPS

Point of Presence (POP) / Bank Charges:

Following costs are to be borne by the Subscriber at the time of registration and/or performing any transaction through Point of Presence (POP)/ Bank. 

*GST or other taxes as applicable, shall be additional.

Grievance Redressal Policy for NPS & NPS Lite

• Grievance Redressal Policy for NPS & NPS Lite

NPS Vatsalya

• Scheme: A saving-cum-pension scheme regulated and administered by the PFRDA.
• Eligibility: All minor citizens (age below 18 years).
• Operations:
  • Account opened in the name of minor and operated by Guardian
  • Minor to be sole beneficiary
• Where to open account: NPS Vatsalya account can be opened by visiting Nearest SBI branch.
• Document required:
  • KYC of Guardian shall be carried out by submitting Proof of Identity and Address (Aadhaar, Driving License, Passport, Voter ID card, NREGA Job Card, National Population Register).
  • Date of Birth proof of the Minor (Birth certificate, School leaving certificate, Matriculation Certificate, PAN, Passport).
  • NRE / NRO Bank Account (solo or joint) of the minor in case the guardian is NRI.
• Contribution:
  • Account Opening contribution: Min Rs. 250/- and Max no Limit

  • Subsequent contribution: Min. Rs. 10 /- p.a. and Max no Limit

  • Annual contribution: Min. Rs. 250 /- p.a. and Max no Limit

  • Pension Fund Selection: Guardian can choose any one of the Pension Fund registered with PFRDA.

• Benefits:

  • Benefits from compounding over long term.

  • Inculcate Financial Discipline

  • Transparent – 24x7 Account Access

  • Optimum Returns

• Account Transition:
  • After Turning 18 Continue to invest in the scheme for up to 3 years. Additional two partial withdrawals are allowed till 21 years of age. Shift the entire accumulated corpus to NPS (All citizen model or other applicable model) post KYC completion by 21 years of age
• Exit from the scheme:

  • If total accumulated corpus is < ₹8 lakh then full withdrawal allowed

  • If total accumulated corpus is ≥ ₹8 lakh then lumpsum withdraw up to 80% of corpus allowed and minimum 20% to be invested in Annuity

• Partial Withdrawl, and death:

  • Withdrawal up to 25% of contribution after lock-in-period of 3 years allowed for education, specified illness and disability. Max two times

  • On death, entire corpus would be returned to the guardian.