New Delhi | Jagran Business Desk: For a better tomorrow of traders and self-employed employees, the Government of India is running the National Pension Scheme to benefit the people after their retirement. National Pension System (NPS) is an investment tool that addresses the requirements of a senior citizen. On the occasion of the second anniversary of this scheme celebrated on September 12 every year, let us know in detail about its features.

What is NPS scheme?

The National Pension Scheme is a social security initiative by the Central Government. This pension program is open to employees from the public, private, and even the unorganised sectors except those from the armed forces. The scheme encourages people to invest in a pension account at regular intervals during the course of their employment. After retirement, the subscribers can take out a certain percentage of the corpus. You will receive the remaining amount as a monthly pension post your retirement.

Benefits of the scheme?

Under this scheme, the benefit of a guaranteed pension of Rs 3000 is received every month after the age of 60 years. Apart from this, voluntary and contributory pension is available in this scheme. The person taking advantage of this facility has to contribute Rs 55 to Rs 200 every month. The Government of India also contributes to this scheme. The pension in this plan is paid by LIC. The latest update from the government says that the entire NPS withdrawal corpus is exempt from tax.

How to apply?

You can apply online to take advantage of the National Pension Scheme. For this, you should be a user of the net banking facility. You will be required to provide your mobile number, email id, and bank account. Along with this, Aadhar and PAN card details are also necessary to apply online.

Here's the step by step process of online application:

  • First login to the NPS Trust website and select the option of registration.
  • Then click on the option that reads 'Personal'.
  • Now, enter the details of your Aadhaar and PAN card. After that, an OTP will come on your registered mobile number.
  • Choose the account you want to open according to your choice.
  • If you have opted for Aadhaar, you will need to enter the OTP for authentication.
  • If you have opted for PAN, there will be a charge of Rs 125 for verifying bank details.
  • Once this is done, fill in your personal details and click on submit.
  • Then choose from any of the eight pension funds.
  • Choose the mode of investment and assign your nominee.
  • Make the payment by uploading your photo and sign.
  • After this, you will be allotted Permanent Retirement Account Number (PRAN).

Posted By: Sugandha Jha