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The National Pension System, commonly referred to as NPS is a voluntary, contribution retirement savings scheme and that has been designed to enable systematic savings during the subscriber's working life.
Bank of Baroda is registered with PFRDA (Pension Fund Regulatory and Development Authority) as POP (Point of Presence) for NPS under All Citizen Scheme and as an aggregator for the purpose of processing NPS Accounts (Tier-I and Tier-II) as well as acceptance of contributions
Those who wish to register under the NPS scheme can visit our branch with identity proof, address proof and age proof and fill the required form. All branches of Bank of Baroda can facilitate the NPS account opening.
The Government of India (GOI) rolled out the NPS scheme for all citizens of India from May 1, 2009, and corporate sector from December 2011.
The person (employee/citizen) who joins the NPS scheme is a "subscriber". Under the NPS, each subscriber opens an account with the Central Recordkeeping Agency (CRA), which is identified through a unique Permanent Retirement Account Number (PRAN).
Under the scheme, two types of NPS accounts are available to subscribers- Tier I & Tier II. The Tier I NPS account is meant for subscribers to contribute their savings for retirement into a non-withdrawable account. These savings can include an employer’s contribution to NPS, in case of the corporate sector.
The Tier II NPS account is a voluntary savings account from which subscribers are free to withdraw their savings whenever they wish. The facility of Tier II account was made available from December 1, 2009, to all citizens of India including government employees and corporate sector subscribers who are not mandatorily covered under the NPS. An active Tier I account is a pre-requisite for opening a Tier II NPS accoun
Any Indian citizen, whether resident or non-resident/ Overseas Citizen of India (OCI), can apply for an NPS account opening. However, those who apply to the NPS scheme must be between 18 to 70 years of age as on the submission date of his/her application to the bank’s branch.
The maximum age up to which an NPS account can be continued is up to 75 years.
Citizens can join the NPS scheme either as employee-employer group(s) (corporates) or individuals, subject to submission of all the required information and know your customer (KYC) documentation.
Opening an NPS account offers several advantages to subscribers. Some of the benefits of the NPS account are mentioned below:
Any individual who is a subscriber of the NPS can claim a tax deduction up to 10% of the gross income under Section 80CCD (1) within the overall ceiling of Rs.1.5 lakh, under section 80CCE.
An additional NPS tax benefit is available to subscribers from the corporate sector under section 80CCD (2) of Income Tax Act. The employer’s NPS contribution (towards the employee) up to 10% of salary (Basic + DA), without any monetary limit, is deductible from the taxable income.
An additional deduction for the NPS investment up to Rs.50,000 (Tier I account) is exclusively available for the NPS scheme under subsection 80CCD (1B). This is over and above the deduction of Rs.1.5 lakh available under section 80C of the Income Tax Act,1961.
NPS account opening is easy, and you can do it either online or offline
The charges involved for NPS Registration and Payment of Initial contribution are as under: