NPS is a government retirement savings scheme, which was launched by the central government in the year 2004. Since 2009, this scheme was also opened to people working in the private sector.
New Delhi. The Pension Fund Regulatory and Development Authority (PFRDA) has recently made several changes for the National Pension System subscribers and pensioners. Here we are telling 5 changes in NPS rules that NPS account holders should know.
1. Now you will get commission on account opening
Point of Presence (PoP) opening NPS account will get commission. POPs include banks, NBFCs and other entities. They register people in NPS and provide many more facilities to the subscribers. From September 1, 2022, POP will get commission from Rs 15 to Rs 10 thousand on opening the account.
2. Change in the process of e-nomination
As per the new procedure, now the nodal office will have the option to accept or reject the one-time e-nomination request. If the nodal officer does not decide on the e-nomination within 30 days from the date of application, the request will be accepted through the Central Recordkeeping (CRA) system. This new rule is effective from 1 October.
3. No separate form for annuity plan
At the time of maturity, no separate form will be required to buy annuity. IRDAI has taken this decision to relax the onboarding process for APS subscribers. Now exit from the NPS scheme will be considered as an offer to buy annuity from life insurance companies.
4. The process of submitting life certificate will be easy
IRDAI has asked insurance companies to simplify the process of submitting life certificates. It has asked insurance companies to follow Aadhaar based authentication or verification of life certificate.
5. Now you will not be able to contribute to Tier-II account with credit card
PFRDA has decided to stop the facility of payment of contribution through credit cards in a major change in the Tier-II account of APS. PFRDA had given this information through a circulation on August 3. After this decision of PFRDA, the facility of payment by credit card for Tier-I account of NPS will continue, while for Tier-II account payment by credit card will no longer be possible. It is noteworthy that earlier the contribution could also be made through credit card in Tier-II account also.
What is NPS
Significantly, NPS is a government retirement savings scheme, which was launched by the central government in the year 2004. Since 2009, this scheme was also opened to people working in the private sector.
