Want to subscribe to National Payment System? 5 recent rule changes to know - Hindustan Times
close_game
close_game

Want to subscribe to National Payment System? 5 recent rule changes you should know

By, New Delhi
Sep 24, 2022 09:53 AM IST

A voluntary retirement pension scheme, NPS enables its subscribers to make decisions regarding their post-retirement life, through systematic savings while they are actively employed.

The National Pension System (NPS) is a voluntary pension scheme, under which investors can go for both debt and equity exposure via a single investment tool. Under NPS, an investor, at the time of retirement, can choose up to 75% equity exposure and withdraw up to 60% of the maturity amount. The remaining 40% will be used to buy annuity, which will be used for monthly pension payable to NPS account holders.

Representative Image
Representative Image

Recently, the Pension Fund Regulatory Development Authority (PFRDA) and Insurance Regulatory and Development Authority of India (IRDAI) announced some changes to NPS rules. Here are 5 updated rules subscribers should know about:

Hindustan Times - your fastest source for breaking news! Read now.

Trail commission payment through PoP: This rule became effective from September 1. Under this, the trail commission to Points of Presence (PoPs) for D-Remit contributions of the associated subscribers shall be 20% of the contribution amount. As with eNPS, the contribution amount is between 15 and maximum 15,000, including the lower and upper limits.

e-nomination flow: Starting October 1, the nodal office can accept or reject e-nomination request of an account holder. The request will be automatically accepted in the Central Recordkeeping Agencies (CRA) system if the nodal office does not initiate any action on the request within 30 days of allotment.

Buy annuity with the same form: Now, at the time of maturity, no separate form is required for annuity, and, instead, exit from NPS will be considered as proposal to buy annuities from life insurance companies. IRDAI has taken this step to make the onboarding process easier for new subscribers to this voluntary retirement scheme.

Submitting life certificate digitally: To ease submission process, IRDAI has directed insurance firms to use Aadhaar-based authentication.

No credit card payment for tier-2 account holders: PFRDA has stopped the use of credit cards to pay for subscription of NPS contribution in tier-2 accounts.

Unlock a world of Benefits with HT! From insightful newsletters to real-time news alerts and a personalized news feed – it's all here, just a click away!- Login Now!
Stay informed on Business News along with Gold Rates Today, India News and other related updates on Hindustan Times Website and APPs
SHARE THIS ARTICLE ON
Share this article
  • ABOUT THE AUTHOR
    author-default-90x90

    Follow the latest breaking news and developments from India and around the world with Hindustan Times' newsdesk. From politics and policies to the economy and the environment, from local issues to national events and global affairs, we've got you covered.

SHARE
Story Saved
Live Score
OPEN APP
Saved Articles
Following
My Reads
Sign out
New Delhi 0C
Thursday, March 28, 2024
Start 14 Days Free Trial Subscribe Now
Follow Us On