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	Click here for Online NPS Registration Click here for NPS subsequent contribution
PFRDA prescribed Forms	Subscriber registration Form NPS registration form for NRI Form for Activation of Tier-II account under NPS NPS Contribution Instruction Slip Pan and Aadhaar Updation Form NPS Partial Withdrawal Form NPS Normal Tier 1 Withdrawal Form NPS Premature Withdrawal Form NPS Scheme-Preference-Change NPS Modification Form Tier - II withdrawal form Fatca Self Declaration Form Inter Sector Shifting(ISS) Form
Brochures	NPS - English
Other links	Revised Guidelines issued by PFRDA wef from 1st July 2023 Grievance redress Mechanism

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

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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.

NPS caters to the Central Government (CG) Sector, State Government (SG) Sector, Corporate Sector and All Citizen Sector.
Individuals subscribing to NPS voluntarily are classified / categorized under All Citizen Sector.

NPS has a unique unbundled architecture wherein each intermediary (PoP, Pension Fund, Central Recordkeeping Agency, Trustee Bank, Annuity Service Provider, Retirement Advisors, Custodian, NPS Trust) is assigned a specialized activity by the Regulator. This ensures economies of scale and operational/intermediation costs at bare minimum to subscribers.
This unique structure safeguards subscribers’ interest as the role of a particular intermediary is limited to the functions assigned to it and no single intermediary/entity has complete control over NPS as a System.

Each intermediary is entitled to recover the following prescribed charges from the subscriber towards the services rendered by them:

Charge Head	Revised Service Charges*	Method of Deduction
Initial Subscriber registration	Rs 400/-	To be collected upfront
Initial Contribution	Up to 0.50% of contribution, subject to Min Rs 30/- and max Rs 25000/-	To be collected upfront
All Subsequent transactions	-	-
All Non-Financial transactions	Rs 30/-	-
Persistency Charges	Rs 50/- per annum for annual contribution Rs 1000/- to Rs 2999/-Rs 75/- per annum for annual contribution Rs 3000/- to Rs 6000/-Rs 100/- per annum for annual contribution above Rs 6000/-	Through cancellation of units
e-NPS (subsequent contribution)	0.20% of the contribution, subject to Min Rs 15/- & Max Rs 10,000/- (Only for NPS All Citizen and Tier-II Accounts)	To be collected upfront
Processing of Exit/Withdrawal	@0.125% of corpus with Min Rs 125/- and max Rs 500/-	To be collected upfront

*GST or other Govt. taxes as applicable to be collected additional to the above charges
Additional Charges by Intermediaries:

Central Recordkeeping Agency

Charge Head	NSDL	Karvy
Account Opening charges (One Time)*	Rs 40	Rs 39.36
Account Maintenance Charges (Per Annum)	Rs 95	Rs 57.63
Charge per transaction (Financial/Non-Financial)	Rs 3.75	Rs 3.36

Pension Fund Investment Management Fee: 0.0467% – 0.09% (adjusted in NAV)
NPS Trust Reimbursement of Expenses: 0.005 % p.a. of Assets Managed
Custodian Asset Servicing Charges: 0.0032% p.a. assets in custody

If a subscriber opts not to have a physical PRAN Card or Welcome Kit, reduced account opening charges of CRA are applicable as under:

CRA	Account opening with Physical PRAN card (in Rs.)	Account opening with ePRAN card (in Rs.)
NSDL eGov	40.0	35.00 (Welcome kit sent vide email only) / 18.00 (No kit)
Kfintech	39.36	39.36 (email) / 4.00 (No kit)

Tier-II transaction charges are same as Tier-I.

An NPS account can be opened through:

Points of Presence (PoP) registered with PFRDA in Online or Physical mode
- PoPs (Banks) are the distribution channel and first point of contact.
- Services include: registration, KYC, contributions, account updates, choices, withdrawals, grievances, etc.

Online platforms (myNPS - for Residents only)
- www.southindianbank.com -> Online Services -> Instant NPS Account Opening
- www.southindianbank.com -> Value Added Services -> National Pension System -> Instant NPS Account Opening
- SIB Mirror+ -> Requests & Services -> National Pension System

Under NPS account there are two types of accounts – Tier I & Tier II.
Tier-I is the Individual Pension Account, which is the default pension account having all the tax incentives under Income Tax Act.
Tier-II is an optional investment account available to a subscriber having an active Tier-I account. This account has no withdrawal restrictions and tax benefits. Tier-II is not a Pension Account.

Tier – I	Tier – Il
Individual Pension Account	Optional Account – Require an active Tier-I
Withdrawal as per rules/regulations only	Unrestricted withdrawals
Min. Contribution Rs.500	Min. Contribution to open Rs.1000
Min. Contribution per year Rs.1000	Min. Contribution Rs.250
Tax benefits are available	No tax benefits on contribution/gains
Any Citizen aged between 18-70 is eligible	NRIs/OCIs are not eligible
Choose any Pension Fund / Investment Pattern	Choose any Pension Fund / Investment Pattern*

*Subscriber can select different Pension Fund and Investment Option for Tier I and Tier II.

Refer to form for accepted documents.
For Residents:

Photograph, PAN, Proof of Address, Proof for Bank Account

For NRIs/OCIs:

PAN, Passport/OCI card, address proof, NRE/NRO account proof

Point of Presence (PoP)
CRA (NSDL/Karvy)
Pension Fund
Investment Choice:
- Active Choice (E/C/G/A with % limits)
- Auto Choice (LC25, LC50, LC75)

PoP: Anytime
CRA: Twice/year
Pension Fund: Once/year
Investment Choice: Four times/year

You’ll receive an Acknowledgement No. and a kit within ~2 weeks.

A unique Permanent Retirement Account Number, unchanged across employment or sector.

PoP, CRA website/app, or Phone (Toll-free: NSDL 1800 222 080 / Kfintech 1800 208 1516)

Via PoP (cheque/cash) or online (web, app). Invested per fund/asset choice.

Within 3 working days. SMS/email confirmation sent. Statement sent annually.

As per asset guidelines by PFRDA:

E: Equity
C: Corporate Bonds
G: Govt. Securities
A: Alternate Assets

Your account becomes ‘frozen’, but can be reactivated.

Submit Form S2 / ISS to PoP with proof (if required).

Check the statement via CRA web/mobile login. Also sent by email/physical.

Compare using NPS Trust website:

Returns: npstrust.org.in/returncalc
Fund performance: npstrust.org.in/return-of-nps-scheme
Portfolio: npstrust.org.in/content/scheme-portfolio

You can withdraw in the following ways:

Partial Withdrawal: After 3 years, withdraw up to 25% of your contributions for:
- Illness
- Disability
- Child's education/marriage
- Property purchase
- Starting a venture

(Allowed max 3 times in total)

Premature Withdrawal:
- After 5 years or 3 years (if joined NPS after age 60)
- Withdraw 20% lump sum; 80% must go to annuity
- If corpus < Rs.2.5 lakh, full amount is given as lump sum
Normal Withdrawal:
- On or after age 60 (or 3 years after joining post 60)
- Withdraw up to 60% lump sum; at least 40% must go to annuity
- If corpus < Rs.5 lakh, full amount is given as lump sum
Additional Options:
- Continue in NPS till age 75
- Defer lump sum or annuity till age 75
On Death:
- Nominee/legal heir can withdraw entire corpus or buy annuity.

Your account continues automatically till 75. You can exit any time before that. Mandatory exit at 75.

Higher education of children
Marriage of children
Purchase/construction of house
Treatment of specified illnesses
Disability >75%
Skill/self-development
Own venture/start-up

Online via NPS login
Offline via PoP with documents

More info: PFRDA link

14 ASPs are empanelled, including:

LIC, SBI Life, HDFC Life, ICICI Pru, Bajaj Allianz, Tata AIA, Max Life, etc.

Types of annuity plans include:

Pension for life
Pension for fixed term + life
Increasing pension
Pension to spouse on death (50% / 100%)
Pension with return of purchase price

Compare plans at: cra-nsdl.com/CRAOnline/aspQuote.html

Directly from the ASP, as per the annuity plan selected and purchased.

No restrictions; withdraw anytime
Tier-II can be transferred to Tier-I (one-way only)
On Tier-I closure, Tier-II balance is also withdrawn to bank account

File online via Central Grievance Management System (CGMS) through your NPS login
Intermediaries must resolve within 30 days
Escalation possible if unsatisfied with resolution

Tier-I account – Tax benefits on Contributions

U/S 80CCD(1): Deduction up to 10% of salary (or 20% of gross income for self-employed) within Rs 1.5 lakh limit u/s 80CCE
U/S 80CCD(1B): Additional Rs.50,000 deduction
U/S 80CCD(2): Employer contributions up to Rs 7.5 lakh (with EPF, Superannuation) deductible

Tier-I account – Tax on Withdrawals / Exit

60% lump sum is tax-free u/s 10(12A)
Annuity portion (40–100%) is tax-free u/s 80CCD(5)
No GST on annuity purchase
Partial withdrawals tax-free u/s 10(12B)

Tier-II account

No tax benefits on contributions or returns
Taxable as per individual’s income tax slab

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