National Pension System

National Pension System (NPS), is an investment tool designed to help you save money while you are employed and ensure a regular stream of income post-retirement. Backed by the Indian government, NPS is designed to suit the varied requirements of different classes of citizens. NPS offers the opportunity to invest in asset classes such as equity and debt and offers market-linked returns. Additionally, tax saving is another inherent feature of this investment avenue that is regulated by the Pension Fund Regulatory and Development Authority (PFRDA). Read more to learn about this retirement planning tool, its features and benefits, and other details.

Features & Benefits
Eligibility
Steps to Open NPS Account
Fees & Charges
NPS Vatsalya
Downloads
FAQs

What is the National Pension System (NPS)? 

The National Pension System (NPS) is a government-initiated scheme designed to provide financial security during retirement. It offers systematic savings throughout your working life, with attractive tax benefits and investment flexibility tailored to your needs.

Secure income for old ageThe NPS helps create a retirement safety net by encouraging disciplined savings during your working years. With tax benefits and market-linked growth, NPS ensures you have a substantial corpus for your old age.

Choice of investment modelsSelect between Auto Choice (lifecycle-based) and Active Choice (self-directed) investment options to suit your risk tolerance and retirement objectives.

Two account options

Tier I: A mandatory, tax-advantaged account for retirement savings.
Tier II: A voluntary account with withdrawal facilities, ideal for short-term savings and investments

Dual benefit for investors  Enjoy market-linked returns and tax benefits under Section 80CCD(1B), which allows an additional ₹50,000 tax deduction beyond the ₹ 1.5 lakh limit under Section 80C.

Features & Benefits

Ensure Income security in your old age 

With systematic contributions, NPS helps build a substantial retirement corpus for financial independence in your later years.

All citizens model 

Available to all Indian citizens, regardless of employment status, ensuring inclusive retirement planning.

Corporate sector model 

Employers can contribute to employee NPS accounts, providing additional tax benefits.

Minimal Contribution 

A minimum annual contribution of ₹1,000 is required for Tier I accounts, allowing you to start saving for retirement with ease.

Scheme preference 

You can choose from multiple investment options, including equity (E), corporate bonds (C), government securities (G), and alternative investments (A), depending on your risk tolerance.

Withdrawals 

Upon reaching 60, you can withdraw up to 60% of the accumulated corpus as a lump sum, with the remaining 40% required to be used for purchasing an annuity.

Eligibility Types of NPS Account

Eligibility for NPS

Age Eligibility: Applicants must be between 18 and 70 years old at the time of application submission.
KYC Compliance: Applicants must comply with Know Your Customer (KYC) norms.
Eligibility for NRI and OCI: As per NPS rules, NRIs (Non-Resident Indians) and OCIs (Overseas Citizens of India) are eligible to open an NPS account.No Pre-existing Account: The applicant should not already have an NPS account.
No Pre-existing Account: The applicant should not already have an NPS account.

Types of NPS Accounts - Two account types are available to subscribers:

Tier I Account: The applicant shall contribute his/her savings for retirement into his restricted withdrawable account.This is the retirement account and applicant can claim tax benefits against the contributions made subject to the Income Tax rules in force.
Tier II Account: Opening of this account is optional for investment purpose.The subscriber has the flexibility to can withdraw from this account as per their requirements.

Steps to open NPS Account Online

You can start your retirement planning and save for your retirement corpus by opening an NPS account online using these simple steps:

Steps to access your National Pension System Account

01
Go to the official NPS website or visit a Point of Presence (POP) like a bank for a new NPS Account opening.
02
Select the type of pension account between Tier I and Tier II and create an NPS account. Note that a Tier I account is mandatory for opening an NPS account.
03
There are 11 Pension Fund Managers (PFM) listed under the NPS; choose the preferred one.
04
You can choose between two modes - Auto and Active. If you opt for Auto Choice, your portfolio will be adjusted based on the current trends, and if you go for Active Choice, you can choose the assets yourself.
05
Fill out the online registration form by entering your personal details, contact information, and nominee details.
06
Provide Know Your Customer (KYC) documents, which include identity proof, address proof, a photograph, etc.
07
Deposit the first pension contribution amount as specified by the chosen type of account. For example, the minimum contribution for a Tier I account is ₹500.
08
After you submit your details successfully, you will receive a Permanent Retirement Account Number (PRAN), which is required for future reference.

Registering via Axis Bank NPS portal

You can also create an NPS account through the Axis Bank website by following these simple steps:

01
Visit Axis Bank’s official website.
02
Navigate to the "National Pension System" page, available under the "Explore Products" dropdown menu.
03
Click on "Apply Now" and accept the terms and conditions. You will then be redirected to a third-party website to complete the registration process.
04
Carefully read the instructions and complete the registration using your preferred method:
- Aadhaar Paperless Offline e-KYC
- Aadhaar or Driving License through DigiLocker
By following these steps, you can easily create your NPS account through Axis Bank’s platform.

Fees and charges of NPS

Axis Bank’s NPS platform provides precise details of applicable fees, including charges for account opening, management, and other administrative services. These fees are designed to be minimal, ensuring that your retirement savings grow efficiently over time.

Fees and charges of NPS

Intermediary	Service	Charges*	Method of Deduction
Point of Presence (PoP)	(i) Initial Subscriber Registration	Upto maximum ₹400/-	To be collected upfront
	(ii) Initial Contribution	Upto 0.50% of the contribution, subject to maximum ₹25000/-
	(iii) All Subsequent Contribution	Upto 0.50% of the contribution, subject to maximum ₹25000/-
	(iv) All Non-Financial Transaction	Upto maximum ₹30/-
	(v) Persistency*	₹50/- p.a. for annual contribution ₹1000/ to ₹2999/- ₹75/- p.a. for annual contribution ₹3000/ to ₹6000/-	Through cancellation of units
		₹100/- p.a. for annual contribution above ₹6000/- (Only for NPS All Citizen model)
	(vi) e-NPS (for subsequent contribution)	Upto 0.20% of the contribution, subject to maximum ₹10,000/- (Only for NPS All Citizen and Tier - II Accounts)	To be collected upfront
	(vii) Trail commission for DRemit Contributions	Upto 0.20% of the contribution subject to maximum ₹ 10,000/- (Only for NPS All Citizen and Tier - II Accounts)	Through unit deduction on periodical basis
	(viii) Processing of Exit/Withdrawal	Upto 0.125% of Corpus subject to maximum ₹500/-	To be collected upfront
*1. Persistency charges is payable to such POPs to which the subscriber is associated for more than six months in a financial year. 2. Minimum contribution per transaction is ₹500/- and minimum annual contribution is ₹1000/- 3. GST or other taxes as applicable, shall be additional.

NPS Vatsalya Scheme

The NPS Vatsalya scheme, introduced in the Union Budget 2024, is a government-backed initiative under the National Pension System aimed at securing the financial future of minors. It allows parents or legal guardians to invest in a pension account on behalf of a child below the age of 18, promoting long-term savings and early financial planning.

Key Features

Targeted for Minors: Specifically designed for Indian citizens under 18 years of age, providing early access to structured financial planning.
Voluntary Participation: Enrollment is completely optional and can be initiated by the child’s parent or guardian.
Contribution Flexibility: A minimum annual contribution of ₹1,000 is required, with no upper cap — allowing flexible savings.
Long-Term Savings: Encourages financial discipline and builds a long-term corpus for the child through compounding returns.
Transition to Regular NPS: When the child turns 18, the account transitions to a regular NPS Tier I account after completing a re-KYC process.
Investment Options: Offers Default (life-cycle), Auto, or Active choice options for investment allocation.

Smart investment option for a secured future

Downloads and Circulars

Axis Bank has designated branches for NPS. You can visit your nearest Axis Bank branch with all the required documents and fill out the national pension system application form. You can download NPS application form below:

Frequently Asked Questions

The NPS pension plan is a pension reform tool designed to enable every citizen of this country to invest for their retirement and enjoy the benefits at pension maturity. It is a government scheme which offers different models and types of investments for anyone between 18 and 70 years of age.

The wealth you accumulate depends on your contribution, asset allocation, and market performance. Regular contributions and a long-term approach can help build substantial wealth

NPS offers higher returns than PPF, particularly with equity exposure, making it a more attractive option for those seeking higher growth. PPF offers fixed returns but with lower risk.

NPS is not entirely risk-free, as it involves market-related risks, especially if you opt for equity investments. However, it is considered less risky than other market-linked investment products due to its diversified options

NPS returns depend on your chosen investment options and the market conditions. Historically, NPS offers returns ranging from 9% to 12% annually.

The best type of NPS depends on your risk appetite. For those with a higher risk tolerance, Active Choice may be the ideal option, while those seeking a more conservative approach can choose Auto Choice.

Any citizen in the age group of 18-70 years (as on the date of submission of his / her application to the POP-SP) can join NPS except for the government subscribers who are mandatorily covered under NPS

No, a subscriber cannot open more than one account.

There is no restriction in terms of frequency of contribution. Subscriber has the option to make the contribution in any mode – monthly, quarterly, half yearly or yearly. Also, Subscriber can make ad–hoc contribution as well.

Yes, NPS offers this flexibility. Subscribers are allowed to alter the contribution amount as per the suitability.

Under NPS account there are two types of accounts - Tier I & Tier II

Tier I account - It is mandatory account. The applicant shall contribute his/her savings for retirement into this conditional & restricted withdrawable account. Tax benefits can be claimed against the contributions made in Tier I account
Tier II account - This is voluntary savings facility. The applicant will be free to withdraw his/her savings from this account. This is not a retirement account and applicant can’t claim any tax benefits against contributions to this accounts

Yes, subsciber can switch the asset allocation pattern under Active Choice twice in a financial year.

Yes, subsciber gets this flexibility. This can be done twice in a financial year

Yes, subscriber on completion of 3 years in NPS is permitted to partially withdraw from his/her account subject to maximum of 25% of the contributions made by the subscriber for the following purposes:

For higher education of his/her children
For marriage of his/her children
For purchase or construction of residential house or flat
For treatment of specified illnesses

There is a provision of withdrawal in case of early withdrawal

No , a subsciber cannot change the annuity service provider.

No, there is no provision for loans, advances, or marking a lien under the National Pension System (NPS)

Employee can shift the corpus to new employer with same PRAN a/c if the new employer is already a registered entity under NPS. But if not, then employee can continue the PRAN a/c under All Citizen Model

In case of unfortunate event, the nominee will receive 100% of the NPS pension wealth in lump sum.

No, NPS account can be opened only in individual capacity and cannot be opened or operated jointly or for and on behalf of HUF

Subscriber is allowed to register up to three nominees in NPS. Yes, minor can be a nominee

NPS Charge Schedule

Intermediary	Request Type	Charges*		Frequency of charges and mode of deduction
Point of Presence (POP)	Subscriber Registration	₹400/-		One time and collected upfront from the subscriber**
	Contribution Processing	0.50% subject to minimum ₹30/- and maximum ₹25000/-		On each transaction and collected upfront from the subscribers
	Non - financial service request	₹30/-
	Persistency Charges^	₹50/- for annual contribution ₹1000/- to ₹2999/- ₹75/- for annual contribution ₹3000/- to ₹6000/- ₹100/- for annual contribution above ₹6000/		Through cancellation of units
		Protean (NSDL)	Kfintech
Central Recordkeeping Agency (CRA)	New Account Opening (Physical PRAN card)	₹40/-	₹39.36/-	One time through cancellations of units
	PRA Maintenance	₹69/-	₹57.63/-	Annually through cancellation of units
	Financial / Nonfinancial transactions	₹3.75/-	₹3.36/-	On each transaction through cancellation of units
Pension Funds	Investment Management	Up to 0.09% of AUM		Adjusted from NAV
Custodian	Asset Servicing	0.000000001770% of AUM
NPS Trust	Trust Management	0.005% of AUM
Trustee Bank	Trustee Bank charges	No charges levied by Trustee Bank

*The above charges are exclusive of GST charges

**Subscriber Registration charges for the corporate subscribers are deducted from the first contribution deposited by the Employer

^Applicable for subscribersregistered under all citizens’ model

For NPS accounts opened onine from Axis Bank portal Contribution is credited in PRANs on Transaction day + 2 days (T+2) basis (subject to receipt of clear funds from Payment Gateway Service Provider).

The Office of Ombudsman
Pension Fund Regulatory and Development Authority,
Tower E, 5th Floor, E-500, World Trade Center
Nauroji Nagar, New Delhi - 110029
Phone No.: 011-4071 7900
Email id: ombudsman@pfrda.org.in

The NPS is regulated by the Pension Fund Regulatory and Development Authority (PFRDA), ensuring that the system remains secure, transparent, and aligned with the interests of investors.

Yes, NRIs are eligible to invest in NPS. They are entitled to the same tax benefits as Indian residents, provided they comply with specific guidelines for foreign investments.