National Pension System India

What is NPS?

National Pension System

National Pension System (NPS) was introduced by the Government of India with an objective to extend old age security coverage to all citizens. Launched in January 2004 the scheme is now more than 10 years old. At inception the scheme was made compulsory for all new Central Government employees (excluding Armed forces) by scrapping the old pension structure for them and that was soon followed by the State Government employees as well. It was only in May 2009, that the scheme was made available for all citizens of India.

In the basket of investment tools currently available in the market NPS clearly stands out. It offers subscribers the option to choose service providers, fund managers & investment schemes along with flexibility to switch amongst the same if desired. The NPS account is fully portable and offers an online platform that enables subscribers to access their account details 24X7. The NPS contributions also provide subscribers with an additional tax savings under section 80 CCD (2) benefit as per the Income Tax 1961.

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