NPS offers wide range of benefits to individuals, making it a unique investment opportunity. Some of the salient features of NPS are

• Portable Account – the NPS account (PRAN) remains the same irrespective of change of employment or geography.
• Online platform – On joining NPS, each Subscriber gets log in ID and Password of NSDL system for accessing NPS details online.
• It offers choice of Service Providers, Funds, Investment Options, Pension Fund Manages, Annuity Service Provides and Annuity Plans to Subscribers
• It offers Subscribers freedom to switch the Service Provider, Fund, Investment Option and Pension Fund Manager
• Flexible contribution mechanism – Amount and frequency of contribution can be changed as per the Subscriber requirement
• Prudently regulated - NPS is regulated by PFRDA, with transparent investment norms and regular monitoring and performance review of fund managers by NPS Trust
• Efficient grievance management through CRA / PFRDA Website, Call Center, Email or Postal Mail
• Transparent investment norms – Investment Portfolio under each asset class can be viewed on respective Pension Fund Manager's website.
• Extremely Low Cost of operations – with 0.01% as Fund Management Charge, NPS is one of the World's least cost investment options​

Any Individual

A citizen of India, whether resident or non-resident can join NPS, subject to the following conditions:

1. Subscriber should have age between 18 – 60 years as on the date of submission of his/her application to the Point of Presence (POP) / Point of Presence–Service Provider -Authorized branches of POP for NPS (POP - SP).

2. Subscriber should comply with the Know Your Customer (KYC) norms as detailed in the Subscriber Registration Form.

The following applicants cannot join NPS:

1. Un-discharged insolvent

2. Individuals of unsound mind

3. Pre-existing account holders under NPS​

Corporate:

Below types of Corporate are also eligible to join NPS and offer it as one of the employee benefit schemes

• Entities registered under Companies Act
• Entities registered under various Co-operative Acts
• Registered Partnership Firms
• Registered Limited Liability Partnership (LLP) Firms
• Central Public Sector Enterprises
• State Public Sector Enterprises
• Proprietorship Concerns
• Trust / Societies
• Foreign Companies registered u/s 591 to 608 of the Companies Act for having place of business in India
• Anybody incorporated under any act of Parliament or State legislature or by order of Central / State Government

​Under NPS following two types of accounts are available:

Tier - I:
Subscriber shall contribute their savings for retirement into this non-withdrawal account. Tier-I account available from May 1, 2009.

Contribution
Subscribers are required to make their NPS contribution to Tier - I, subject to following conditions:
Minimum amount per contribution - Rs 500
Minimum total amount of contribution per year - Rs 6000.
Minimum number of contributions made each year - 1

Tier - II:

This is a voluntary savings facility. Subscriber will be free to withdraw their savings from this account whenever he/she wishes. The facility of Tier-II account is being offered from 1st December, 2009. This account would enable the existing PRAN holders to build savings through investments over & above those in the Tier - I account. An active Tier-I account will be a pre-requisite for opening of a Tier-II account.

 
Key Features of Tier-II account:

1. No. additional CRA charges will be levied for account opening & annual maintenance in respect of Tier-II.
2. There will be no limits on the number of withdrawals.
3. There will be facility for separate nomination and scheme preference in Tier-II.
4. The subscriber would have the same choice of PFMs and schemes as in the case of Tier-I account in the unorganized sector.
5. Contributions can be made through any POP/POP-SP.
6. There will be facility of one-way transfer savings from Tier-II to Tier-I.
7. Bank details will be mandatory for opening a Tier-II account.
8. No separate KYC for Tier-II account opening will be required; the only requirement is a pre-existing Tier-I account.​

​Minimum contribution at the time of account opening - Rs. 1,000

Minimum amount per contribution - Rs 250
Minimum account balance at the end of financial year - Rs. 2,000
Minimum number of contributions made each year - 1
(Minimum one contribution in case a subscriber joins in the last quarter)
Penalty of Rs. 100 to be levied on the subscriber for not maintaining the minimum account balance and/or not making the minimum number of contributions​

​Subscriber can withdraw on attaining the age of 60 years and up to 70 years from the pension system. At exit, the subscriber would be required to invest at least 40 percent of pension wealth to purchase a life annuity from any IRDA - regulated life insurance company. The remaining pension wealth can either be withdrawn in a lump sum on attaining the age of 60 or in phased manner between age 60 and 70 at the option of the subscriber.

An unfortunate event like death of subscriber due to any cause, option will be available to the nominee to receive 100% of the NPS pension wealth in lump sum. However if the nominee wishes to continue with the NPS, he/she shall have to subscribe to NPS individually after following due KYC norms. 

Any subscriber desires to withdraw before 60 years of age; he/she would be required to invest at least 80% of the pension wealth to purchase a life annuity from any IRDA-regulated life insurance company. Rest 20% of the pension wealth may be withdrawn as lump sum.​​

​Active Choice

Subscriber has the option of 3 types of funds under NPS – Scheme E (Equity), Scheme C (Corporate Bonds) and Scheme G (Government Securities).

Scheme E- Investment would be in equity market instruments

Scheme C- Investment would be in credit risk bearing Fixed Income instruments

Scheme G- Investment would be in Government securities

​Subscriber can decide on his own the asset mix. However, the exposure to Equity is restricted to maximum of 50% of the Contribution amount.

Auto Choice 

Subscriber also has an option of Life Cycle Fund which is also known as Auto Choice. Under this mode, investment across three funds is done as per the age of the employee. At the lowest age of entry (18 years) the auto choice will entail investment of 50 % of pension wealth in Scheme "E" , 30% in Scheme "C" and 20% in Scheme "G". These ratios of investment will remain fixed for all contributions until the subscriber reaches the age of 36. From age 36 onwards, the weight in "E" and "C" scheme class will decrease to 48% and 29%, respectively and the weight in "G" class will increase to 23% as shown in the table below:

Subscriber can change the asset mix / pension fund manager once in a financial year.

Subscriber can have different Investment choice (Auto / Active) / pension fund manager for Tier I and Tier II account.

​Content for Point 1 (b) (vii) is as below.​

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