For Indian Citizens including NRI & OCI

The sooner you invest, the stronger your financial future becomes

Open NPS Account

Who can open a
NPS account?

All citizens of India, including self-employed individuals, employees of the private and public sectors, NRIs and OCIs.
Individuals must be between the ages of 18–85 years at the time of registration.
The subscribers must successfully comply with the KYC requirements.

On opening an NPS account, a unique Permanent Retirement Account Number (PRAN) is allotted. PRAN is required to initiate the investments.

Types of NPS

Tier I is the retirement account. Contributions in Tier I are used for pension savings. Tier II is an investment account that offers greater flexibility with no lock-in.

Tier I (Pension Account)

Having this account is mandatory to participate in the NPS. Contributions are restricted from withdrawal and the funds are further invested in a pension once the investor reaches the age of 60.

Tier II (Investment Account)

This is an optional account that individuals can open in addition to their Tier I account. This account is more flexible than the Tier I account, as contributions can be withdrawn at any time.

How NPS works

The process is simple: open, contribute, invest, and choose how you receive your retirement income.

Open account & get PRAN

A unique PRAN is allotted on signup.

Make contributions

Contribute to Tier I and/or Tier II based on your savings goals.

Funds invested across asset classes

Corpus is invested as per your chosen Active or Auto investment option.

Flexible payout on retirement

Choose lump sum, periodic payout, annuity, or a mix.

NPS in action

Long-Term Planning

Building a retirement corpus with Nakul

Nakul starts investing in ₹10,000 / month in NPS at 30 for long-term wealth creation and tax benefits. With systematic monthly contributions and a 10% assumed return, he can build significant corpus over 30 years.

Total corpus on retirement ₹ 2.26 Cr

10% Assumed Returns · 30 Years · Tier I
Living Your Dream

A Europe trip funded by Tier II

Nakul uses NPS Tier II as a medium-term savings tool — investing ₹7,000 monthly toward a Europe trip goal of ₹5 lakhs. At 35, he withdraws freely since Tier II has no lock-in. Retirement savings untouched.

₹5.4L at age 35

₹7,000/mo · 10% assumed returns · 5 years · Tier II

Investment asset classes

NPS invests across three market-linked asset classes, balancing growth potential with stability based on your risk appetite.

Equity & Related Assets

Invest up to 75% in stocks of companies listed on Indian exchanges. Highest return potential over long investment horizons.

Corporate Bonds

Up to 100% in corporate bonds from private and public sector companies. Stable accrual income with credit quality and diversification.

Government Securities

Up to 100% in bonds from Central and State Governments. Capital preservation and portfolio stability against equity volatility.

Investment choices

Investors have two ways to decide how their contributions are allocated based on how involved they want to be.

Active Investment Choice

You decide the allocation

Choose your own allocation across equity, corporate bonds, government securities, and alternatives. You can change the allocation four times a year, within PFRDA-specified limits.

Auto Investment Choice

Age-based automatic rebalancing

Allocation is decided based on your age and risk tolerance. As you approach retirement, the portfolio automatically shifts to lower-risk assets. Choose from four risk levels.

New from Oct 2025

Multi Scheme Framework (MSF)

Hold and manage multiple NPS schemes under a single PRAN. Balance conservative and aggressive strategies simultaneously. Equity cap raised to 100%.

Simplified option

NPS Sanchay

Pre-defined allocation for investors with limited financial advisory access: 25% equity, 45% corp debt, 65% G-Secs, 5% alternatives, 10% money market.

Tax benefits under NPS

NPS offers one of the most generous tax-saving structures available up to ₹2 lakhs in deductions across three sections of the Income Tax Act.

Section 80CCD(1)

Investors can claim a deduction, for contributions made to the NPS, of up to 10% of their salary (for salaried individuals) or 20% of their gross income (for self-employed individuals), subject to a maximum of Rs.1.5 lakhs in a financial year.

Section 80CCD(1B)

An additional deduction of up to Rs.50,000 can be claimed for contributions made to the NPS, over and above the limit of Rs.1.5 lakhs under Section 80 CCD(1).

Section 80CCD(2)

Employer contributions under tax old regime to NPS Tier 1 account up to 10% of the employee’s salary (Basic + DA) under the corporate NPS qualifies for an additional tax deduction. Under new tax regime employer contribution has been increased to 14% of Basic + DA.

NPS Withdrawal Options

Various other exit options are provided to investors before the age of retirement or who want to avail withdrawals earlier:

  1. Partial Withdrawal

    Investors can do partial withdrawal after completing 3 years in the system and up to 25% of their individual contribution. This facility can be availed 4 times with a gap of 4 years during the entire tenure of subscription. These withdrawals are exempted from further taxation. Partial withdrawals are allowed for any of the following purposes only:

    • Higher education of children including a legally adopted child
    • Marriage of children, including a legally adopted child
    • For the purchase or construction of a residential house or flat
    • For medical treatment or hospitalisation of self, spouse and children
    • To meet medical and incidental expenses arising out of the disability or incapacitation
    • Towards settlement of a financial obligation availed by a subscriber from a regulated financial institution against the lien

  2. Premature Exit

    The individual can exit the scheme after 5 years of joining NPS. If the value of total corpus at the time of exit is ₹5 lakhs or less, the investor can withdraw the overall fund. However, if the investor is willing to take pension, a minimum of 80% of the corpus must be invested in a pension plan.

Payout options at retirement

Corpus at retirement Payout options available
Up to ₹8 lakh Full lump sum withdrawal, or periodic payouts via Systematic Lumpsum Withdrawal (SLW) or Systematic Unit Redemption (SUR).
₹8 lakh - ₹12 lakh Up to ₹6L as lump sum; balance via SUR for at least 6 years, annuity, or other PFRDA-approved options.
Above ₹12 lakh Minimum 20% must purchase an annuity for regular pension income. Remainder via lump sum or periodic payout.
Flexible exit Lump sum withdrawal or annuity purchase can be deferred up to age 85. Exit anytime during the deferment period.

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Frequently Asked Question

Here are some frequently asked questions about NPS

National Pension System (NPS) is a pension scheme introduced by the Government of India for the citizens of India to provide them with a regular source of income after their retirement.

NPS is regulated by the Pension Fund Regulatory and Development Authority (PFRDA). Custody of funds and securities is administered through centralized infrastructure controlled by NPS Trust.

NPS is a pension scheme that provides a regular source of income after retirement, while other investment options like mutual funds or fixed deposits are used for wealth creation. NPS also offers a tax-efficient way of saving for retirement.

NPS invests in a mix of assets such as equity, bonds, and alternative investments to ensure adequate returns. It also allows its investors to choose their investment mix based on their risk appetite and investment goals.

Yes, NPS investments can be partially withdrawn for specific purposes such as higher education, housing, and medical emergencies as per the prescribed rules and regulations.