NPS: PFRDA lowers minimum contribution to Rs 1,000 per year
Insurance regulator PFRDA has substantially lowered the minimum annual contribution to Rs 1,000 to keep the account active in order to encourage more people to join the National Pension System.
- Priorly instead of 1000, a subscriber had to contribute at least Rs 6,000 in a financial year to keep the Tier-1 account running.
NPS comprises of two tiers of accounts.
- TIER – I is the non-withdraw able permanent retirement account into which the accumulations are deposited and invested as per the option of the subscriber.
- Tier-II is a savings account; the regulator has decided to waive the requirement of annual minimum contribution of Rs 250 and minimum balance of Rs 2,000 at the end of a fiscal year.
About PFRDA:
PFRDA promotes this lowering with a view to encourage the access of NPS to all segments of the society including the unorganized sector.
- it has been decided to reduce the requirement of minimum contribution to keep the NPS Tier I account active, from Rs 6,000 to Rs 2,000.
- It is noted that NPS has over 1.30 crore subscribers with total Asset Under Management (AUM) of more than Rs 1.37 lakh crores.
Details:
Name – Pension Fund Regulatory and Development Authority
Establishment – 2003
Chairman – Hemant Contractor
