National Pension System (NPS)

Your Gateway to a Secure Retirement

The National Pension System (NPS) is a government-initiated pension scheme designed to provide financial stability post-retirement. With South Indian Bank, you can open an NPS account with ease and enjoy benefits like tax savings, market-linked returns, and personaliSed investment options. Whether you're a salaried employee or self-employed, our NPS services are tailored to meet your retirement goals.

Features of NPS

Guaranteed Minimum Pension
Enhanced returns
Government contribution
Tax benefits

National Pension System (NPS)

Why Choose South Indian Bank?

South Indian Bank offers a customer-friendly approach with easy account opening, expert guidance, and trusted service. We ensure quick processing, secure transactions, and seamless management of your retirement fund.

Trust & Security
South Indian Bank is a PFRDA-certified Point of Presence (PoP) for NPS accounts. Enjoy secure transactions and a hassle-free experience with our expert team.

  • Tax benefits - Save up to Rs 2 lakh in taxes under Sections 80CCD(1), 80CCD(1B), and 80CCD(2).
  • Retirement corpus growth - Market-linked returns from diversified investments in equities, bonds, and government securities.
  • Flexible investments - Choose your contribution amount and frequency.
  • Portability - Seamlessly manage your account across jobs and locations.
  • Affordable plan - NPS offers one of the lowest fund management fees globally.
Criteria Details
Age 18 to 70 years
Nationality Indian citizens, including NRIs
Account Type South Indian Bank Savings Account
Documents Needed Aadhaar, PAN, Photograph
Tier 1 and Tier 2 NPS Accounts

NPS offers two account types, Tier 1 and Tier 2, each designed to cater to different financial needs and goals.
Note that opening a Tier 2 account requires an active Tier 1 account.
Tier 1 NPS Account

 

  • Designed for retirement - Mandatory account focused on building a retirement corpus.
  • Tax benefits - Enjoy deductions of up to Rs. 2 lakh annually under Section 80C and 80CCD(1B).
  • Withdrawal rules - Restricted withdrawals before retirement; a portion of the corpus is used for annuity purchase.
  • Lock-in - Funds remain locked until retirement, ensuring disciplined long-term savings.

Tier 2 NPS Account

  • Flexible savings option - Voluntary account offering the flexibility to save and withdraw anytime.
  • No tax benefits - Contributions do not qualify for tax deductions.
  • Unlimited withdrawals - Offers higher liquidity with no lock-in period.
  • Eligibility -Requires an active Tier 1 account for opening.
  • Ideal for - Short-term investments and market-linked returns without the constraints of retirement-focused planning.

Choosing the Right NPS Account

  • Tier 1: Perfect for those aiming for disciplined, tax-efficient retirement savings.
  • Tier 2: Best suited for individuals seeking flexible investment options, but Tier 1 is mandatory to access it.

Both accounts provide professional fund management and a balanced portfolio across equity, corporate bonds, and government securities, ensuring growth and stability.

The National Pension System (NPS) offers a variety of funds to cater to the diverse investment needs of subscribers. These funds are managed by professional fund managers and provide a mix of equity, debt, and government securities. Subscribers can choose the allocation of their investments among these funds based on their risk appetite and financial goals.

Equity (E) fund

  • Invests primarily in equity markets to generate higher returns over the long term.
  • High risk due to market volatility, but offers the potential for higher growth.
  • Best for young investors with a long investment horizon and higher risk tolerance.

Corporate debt (C) fund

  • Invests in high-rated corporate bonds and debentures.
  • Moderate risk with relatively stable returns compared to equity.
  • Best for investors seeking a balance between risk and return.

Government securities (G) fund

  • Invests in government bonds and securities, ensuring maximum safety.
  • Low risk but offers lower returns compared to equity and corporate debt.
  • Best for risk-averse investors looking for capital preservation.

Alternative investment (A) fund (Available for NPS private sector only)

  • Invests in alternative investment instruments like Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs).
  • High risk due to the nature of alternative investments.
  • Best for investors with a higher risk appetite seeking portfolio diversification.

Investment choice options

  • Active choice
    • Subscribers decide the percentage allocation among E, C, G, and A funds based on their preferences.
    • Offers complete control over portfolio allocation.
  • Auto choice
    • Investments are allocated automatically based on the subscriber's age, with equityexposure reducing as they get older.
    • Best for those who prefer a hands-off approach to portfolio management.

The variety of fund options under NPS ensures flexibility and caters to the needs of investors with varying risk profiles and financial objectives. Whether you're looking for growth, stability, or diversification, NPS provides a structured and efficient way to build your retirement corpus.

Online Application: Fill out the NPS Account Form and upload your documents.
Or

  • Branch Visit: Visit your nearest South Indian Bank branch for in-person assistance.
  • KYC Verification: Complete your KYC with Aadhaar and PAN.
  • Start Investing: Customise your investment strategy and start building your retirement corpus.
Category Required Documents
Indian Residents Identity Proof, Address Proof, Passport Photo, Aadhaar, PAN
NRIs Valid Passport, Visa, NRE/NRO account statements

Prepare your documents in advance to enjoy a hassle-free application process.

 

Charges
  • Contribution Charges: Nominal fees based on investment choice.
  • Fund Management Fees: Lowest in the industry.

View detailed fee structures and calculate your potential corpus with our NPS Calculator. View Charges

 

Forms:
Openings forms
PFRDA prescribed Forms
Brochures
Other links

 

Other details
POP Nodal Officer: Name : Mr. John C Lazar
Mob No. : 8197 183 338
Email ID. : johnclazar@sib.co.in
Designation : Deputy General Manager / POP Nodal Officer
Department : Retail banking Department
POP Name : The South Indian Bank Ltd.
POP Reg No. : POP74092018 / 5000192
POP Compliance Officer : Name : Ms. Katyayini A
Mob No. : 9442174525
Email ID. : katyayini@sib.co.in
Designation : Assistant General Manager / POP Compliance Officer
Department : Banking Operations Group
POP Name : The South Indian Bank Ltd.
POP Reg No. : POP74092018 / 5000192

 

QUESTIONS & ANSWERS

Frequently Asked Questions

To get answers to the frequently asked queries

National Pension System (NPS) is a defined contribution pension. NPS is voluntary for subscription by an individual to make contributions to his/her Individual Pension Account during the working life for creating a pension corpus from which regular income will be generated after retirement / working age.
NPS is mandatory for the Central Government recruits w.e.f. 1st Jan 2004 (except armed forces) which replaced the earlier defined benefit pension and has been subsequently adopted by almost all State Governments for their employees.

  • Regulated - NPS is regulated by PFRDA, which is established through an Act of Parliament. (PFRDA Act 2013)
  • Pension for All - can be voluntarily subscribed by any Indian Citizen (resident/nonresident/overseas citizen).
  • Low Cost – NPS is one of the lowest cost pension schemes in the world.
  • Flexible - Subscribers have choices of Point of Presence (PoP), Central Recordkeeping Agency (CRA), Pension Fund and Asset Allocation. The choices exercised can be changed subsequently.
  • Portable – NPS account can be transferred across employment, location/geography.
  • Tax efficient – Tax incentives are available to subscribers under the Income Tax Act 1961.
  • Optimum returns – Market linked returns based on investment choice made by the subscriber.
  • Transparent – Subscribers can access their NPS accounts online 24X7 and public disclosures mandated.

  • Any Indian Citizen (resident or non-resident) and Overseas Citizen of India (OCI)
  • Aged between 18–70 years
  • Compliant to Know Your Customer (KYC) norms.

Hindu Undivided Families (HUFs) and Persons of Indian Origin (PIOs) are not eligible for subscribing to NPS.
NPS is an Individual Pension Account and cannot be opened on behalf of a third person. The applicant should be legally competent to execute a contract as per the Indian Contract Act.

Yes. NPS can be voluntarily subscribed along with any other pension scheme(s). However, an individual cannot have multiple NPS accounts.

The amount of pension will depend on the amount of contributions made, accrual/returns on the investments and the portion of corpus utilised by the subscriber for purchasing annuity plan from any of the Annuity Service Providers empanelled with PFRDA.

Under NPS, there is no implicit or explicit assurance of benefit and the investments are subject to market conditions.

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