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National Pension Scheme with SBI : A Complete Guide

National Pension Scheme with SBI : A Complete Guide

National Pension Scheme with SBI (i.e. SBI NPS)

India these days neighborhood countrywide pension arrangement: Tax deduction and retirement benefits of subscribing to NPS.
National Pension Scheme with SBI is among the best authorized alimony schemes within the country.
The arrangement became initiated by means of the govt in.
Personnel working in the public and personal sector organizations can subscribe beneath the arrangement, and comfortable their retirement.  

There are 2 types of SBI NPS accounts – Tier 1 and Tier 2. While Tier 1 account is the primary SBI NPS account aimed at creating a retirement corpus, Tier 2 account is more like a voluntarily savings account which offers more flexibility in terms of deposits and withdrawals.

Also Read National Pension System : Secure Your Retirement without Stress

State Bank of India (SBI) is one of the banks where you can open an National Pension Scheme account easily.

Features of SBI NPS

Eligibility
Any Indian citizen between 18 & 65 years of age.
An NRI can also join SBI NPS.
Individuals covered under any pension scheme.

Documents Required

  • Photo Id proof like Pan Card, Voter Id card, Aadhar card etc.
  • Date of birth proof like Passport, Aadhar card etc.
  • Address proof like Aadhar card, Driving license etc.
  • Application form.


NPS Tier I Account
A Tier-1 SBI NPS account can be opened with a minimum investment of Rs. 500. Thereafter, you can invest Rs. 1000 or more every financial year to create a retirement corpus.
Upon attaining the age of 60, you are allowed to withdraw up to 60% of your total accumulated corpus. The remaining 40% of the investment will be used to purchase annuities to provide regular pension to you.

NPS Tier II Account
A Tier II account is a voluntary account which you can open only if you have an existing NPS Tier 1 account.
As compared to a Tier 1, these accounts offer more flexibility in terms of deposits and withdrawals.
You can open a Tier 2 account with a min investment of Rs. 1,000. However, unlike a Tier 1 account, it’s not mandatary to invest at least once every financial year in a Tier 2 account.
Also, you can withdraw from this account anytime just like a normal savings account or SIP.

What is Benefit of SBI National Pension Scheme Account?

  1. The Subscriber (Tier 1) of NPS can claim tax benefit under Section 80 CCD (1) with in the overall ceiling of Rs 1.5 lac under Sec 80 CCE.
    An additional deduction for investment up to Rs 50,000 in NPS is available exclusively to subscribers under sub-section 80CCD (1B).
  2. The Subscribers can choose their own investment options and pension fund and see their money grow.
  3. The NPS Subscribers can operate their account(Tier 1 and 2) from anywhere, even if they change the city and/or employment.
  4. National pension System is regulated by PFRDA – Pension Fund Regulatory and Development Authority, with transparent investment norms and regular monitoring and performance review of fund’s managers by NPS Trust.
  5. A NPS Subscriber can contribute at any point of time in a Financial Year and also change the amount he wants to set aside and save every year.

Also Read Tax Benefits of NPS: Enjoy 1.5L + 50K Extra Benefit | New & Old Regime

SBI Pension Fund Tier I Account – Performance

Scheme5 Year Return
A Scheme
In this asset class, investments are being made in instruments like CMBS, REITS, AIFs, etc.
C Scheme
Scheme invests in Bonds issued by Public Sector Undertakings, Public Financial Institutions, Infrastructure Companies and Money Market Instruments.

9.70%
E Scheme Equity Market.7.70%
G Scheme
Scheme invests in Securities issued by Central Government, State Governments and Money Market Instruments.
10.20%

SBI Pension Fund Tier II Account – Performance

Scheme5 Year Return
A Scheme
In this asset class, investments are being made in instruments like CMBS, REITS, AIFs, etc.
C Scheme
Scheme invests in Bonds issued by Public Sector Undertakings, Public Financial Institutions, Infrastructure Companies and Money Market Instruments

9.50%
E Scheme Equity Market7.60%
G Scheme
Scheme invests in Securities issued by Central Government, State Governments and Money Market Instruments.
10.10%

Opening an NPS Account Online with SBI

Following documents will require before start the Online process

Documents Required for National Pension Scheme with SBI

  1. PAN No and a Scanned Copy (in .jpeg, .jpg, .pdf Format, Size should be between 4KB and 2MB)
  2. Scanned Copy of a CANCELLED CHEQUE (in .jpeg, .jpg, .pdf Format, Size should be between 4KB and 2MB)
  3. Photograph (in .jpg Format, Size should be between 4KB and 12kB)
  4. Scanned copy of your Signature (in .jpg Format, Size should be between 4KB and 12kB)
  5. Aadhar Card or PAN number (These must be linked with your SBI account)
  6. Net-banking facility or debit card of SBI Account.

Also ReadNPS benefits: 12 Reasons For Investing In NPS

Important Points

  1. If you try to create an NPS account with PAN number, then details will be validated online with the IT dept. If PAN records matches with the information provided during NPS registration, you will get PAN Details confirmation message.
  2. Fields marked with “*” are mandatory. Click on “Save & Proceed” button in short intervals to avoid data loss due to session expiry. Click on “Reset” button to clear the unsaved data.
  3. Majority of data will be automatically fetched from Aadhaar database or PAN details.

Steps for New Registration

Time needed: 5 minutes.

Below are the steps you have to follow for opening the NPS account online.

  1. Login

    Log on to the NPS website (i.e. https://enps.nsdl.com/eNPS/NationalPensionSystem.html)

  2. Registration

    From below screen you chose the option “New Registration”.

  3. New Registration using PAN Card

    You need the below basic details when considering to open your National Pension Account with SBI
    Applicant Type – Individual Subscriber.
    Status of Applicant – Citizens of India.
    Register With – PAN Number
    Account Type – Tier I only
    Enter your PAN Number (Provide exact customer Income Tax PAN).
    Select the State Bank of India and Click Continue.

  4. Personal Details

    Fill all the personal details that you need to continue filling all mandatory information (i.e. Name as per PAN Card, Date of Birth, Mobile Number, email id, Family Details and Proof of Identity, etc.).
    This window looks like below.

  5. POP up window

    Click Continue (Immediately a POP up shows you on the screen with Acknowledgement number and the same sent to you on your registered mobile number)

  6. Paperless offline eKYC

    Enter your Present/Permanent Address, Contact details, Bank Details and Nomination.

  7. Document Upload

    You have to upload the Documents, Photo and Signature image. Once, everything over, then you have to confirm.

  8. Payment through SBI

    Once that is done you have to make an online payment of a minimum of INR 500/- into your newly created pension account.
    Click Save & Proceed (To complete the registration process)

  9. PRAN Number

    Once you do the payment, then you will receive the PRAN (i.e. Permanent Retirement Account Number) to your email and mobile number.

Final step (eSign/ Print Registration Form)

  1. Finally, click on the eSign submit button which will complete your successful registration of online NPS account.
    If you select “eSign” option, your account will be opened paperless (you are not required to send the physical copy of form to NSDL-CRA).
  2. Print the Account Opening Form(AOF) on A4 size white papers. Attach the required documents, such as photographs and proof of identity and address, as mentioned in the AOF.
    The photograph should not be stapled or clipped to the form.
    The form should be sent within 30 days from the date of allotment of PRAN to CRA at the following address or else the PRAN will be ‘frozen’ temporarily.

    Central Recordkeeping Agency (eNPS)
    NSDL e-Governance Infrastructure Limited,
    1st Floor, Times Tower,
    Kamala Mills Compound, Senapati Bapat Marg,
    Lower Parel, Mumbai – 400 013

Complete Pending NPS Registration

The below screenshot is to complete the pending NPS registration. You will have to fill your Acknowledgement No, Acknowledgement Date, First Name, Date of Birth and Email.

New Charges/Fees Structure of National Pension Scheme with SBI

Type of ServiceService charges to be paid to the Point of Presence (POP) by the Subscriber (excluding GST)
Initial Subscriber Registration/per subscriberRs .200/-
Initial Contribution amount / per subscriberAd valorem 0.25% of the contribution amount (Minimum: Rs.20/- & Maximum: up to Rs.25000/-).
Subsequent Contribution Transaction Charge/ per subscriberAd valorem 0.25% of the contribution amount (Minimum: Rs.20/- & Maximum: up to Rs.25000/-).
Any other transaction not involving a contribution from subscriber/ per subscriberRs. 20/-
PersistencyRs 50/- per annum (only for NPS- All citizen model) – recovered through cancellation of units.
Source SBI

Also Read NPS calculation

Bottom Line

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NPS is a very long-term investment product, so make sure you understand the implications and the working of NPS before opening an account.

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