National Pension System (NPS)
Government Market-Linked Pension Scheme
Min Investment₹500 one-time (minimum to open; ₹1,000/year to keep active)
Service ProviderPFRDA (Government of India)
Entry Age18–70 years
Description
A government-backed, market-linked retirement savings scheme regulated by PFRDA. Contributions build a retirement corpus, part of which can be withdrawn tax-free at retirement, with the rest converted into an annuity.
- Additional tax benefit up to ₹50,000 under Section 80CCD(1B)
- Choice of Active or Auto investment choice
- Portable account across jobs and locations
- Partial withdrawal allowed for specific needs after 3 years
- Indian citizen (resident or NRI) aged 18 to 70 years
- KYC-compliant
- Minimum annual contribution of ₹1,000 required to keep the Tier I account active
Terms & Conditions
At least 40% of the accumulated corpus must be used to purchase an annuity at retirement, per PFRDA regulations. Remaining terms are as per PFRDA's NPS scheme rules.