National Pension System (NPS)
Bank of Baroda is registered with PFRDA as POP (Point of Presence) for NPS under All Citizen Scheme and as Aggregator for the purpose of processing NPS Accounts (Tier-I & Tier-II) and acceptance of contributions
Individuals can visit our Branch with ID proof, Address Proof and age proof to fill the form for registration under the schemes above.
*All the branches of our Bank are authorized to open NPS accounts
Introduction to National Pension System (NPS)
The Government of India (GOI) rolled out the NPS for all citizens of India from May 1, 2009 and Corporate sector from December, 2011.
The person (employee/citizen) who joins the NPS will be known as "Subscriber" in the NPS. Under the NPS, each Subscriber will open an account with Central Recordkeeping Agency (CRA) which will be identified through unique Permanent Retirement Account Number (PRAN).
Under NPS, two types of account would be available to subscribers i.e. Tier I & Tier II; Tier I account - where subscribers contribute his / her savings (may include employers contribution in case of Corporate sector) for retirement into a non-withdrawable account, and a Tier II account - a voluntary savings account from which subscribers are free to withdraw their savings whenever he wishes. The facility of Tier II account was made available from December 01, 2009 to All Citizens of India including Govt. employees and Corporate sector subscribers not mandatorily covered under NPS. An active Tier I account will be a pre requisite for opening of a Tier II.
Who can subscribe in NPS scheme?
Any citizen of India, whether resident or non-resident, aged between 18 – 60 years as on the date of submission of his/her application to the Bank’s branch. The citizens can join NPS either as individuals or as an employee-employer group(s) (corporates) subject to submission of all required information and Know your customer (KYC) documentation. After attaining 60 years of age, the subscriber is permitted to make further contributions to the NPS accounts till 70 years of age.
Benefits of NPS
- Voluntary - NPS is open to every Indian Citizen. A subscriber can choose the amount he wants to set aside and save every year.
- Simple - All the subscriber has to do is to open an account with our Bank and get a PRAN.
- Flexible - Subscribers can choose their own investment option and pension fund and see their money grow.
- Portable - Subscribers can operate their account from anywhere in the country, even if they change the city, job or their pension fund manager.
- Regulated - NPS is regulated by PFRDA, with transparent investment norms and regular monitoring and performance review of fund managers by NPS Trust.
Tax Benefits of NPS
Tax Benefit available for Individual:
Any individual who is subscriber of NPS can claim tax deduction up to 10 % of gross income under Sec 80 CCD (1) with in the overall ceiling of Rs. 1.5 lac under Sec 80 CCE.
Tax Benefit available for Corporate Subscriber:
Additional Tax Benefit to Subscribers under Corporate Sector u/s 80CCD (2) of Income Tax Act is also available, the employer's NPS contribution (towards the employee) upto 10% of salary (Basic + DA), without any monetary limit is deductible from taxable income.
Exclusive Tax Benefit for any NPS subscribers u/s 80CCD(1B)
An additional deduction for the investment up to Rs. 50,000 in NPS (Tier I account) has been exclusively available for NPS under subsection 80CCD (1B). This is over and above the deduction of Rs. 1.5 lakh available under sec 80C of Income Tax Act. 1961.
If you are an existing subscriber, you can approach our Bank’s branch or alternatively you can visit eNPS website (https://enps.nsdl.com) for making additional contribution in your Tier I account.
Please note: Tax benefits are applicable for investments in Tier I account only