India Post allows subscribers to open new NPS account and make subsequent contributions.India Post or Department of posts, which runs postal network of country, also offers facility of opening accounts under National Pension System (NPS).
NPS or National Pension System is defined as a contribution pension system that provides social security to all citizens of country.
It is administered and regulated by Pension Fund Regulatory and Development Authority (PFRDA).
Under this system, contributions from subscribers along with matching contributions from respective governments as an employer, are collected and accumulated in an individual pension account, which is identified by Permanent Retirement Account Number (PRAN).Services offeredIndia Post allows subscribers to open new NPS (all citizens model) account and make subsequent contributions.
All types of service requests and exit / claim withdrawal requests are also offered, stated India Post its official website-indiapost.gov.in.EligibilityAll citizens who do not come under any NPS sector and are aged between 18 and 64 years of age can open an NPS account with post office, it noted.Types of accountsThere are two types of accounts that are opened under NPS: Tier I and Tier II.
Tier I is a pension account and is mandatory.
Tier II is a savings account and is optional.Finance cap on NPS accountsMinimum Initial Contribution with registrationRs.
500 (excluding taxes)Minimum Subsequent ContributionRs.
500 (excluding taxes)Maximum ContributionsNo limitMinimum Contributions in a Financial YearRs.1,000 in Tier IMinimum transactions in a Financial YearOne(As mentioned onindiapost.gov.in)Transaction chargesRegistration ChargesRs.
200 (excluding taxes).0.25 % of Contribution amount subject to minimum of Rs.20 (excluding taxes) and maximum of Rs.25,000 (excluding taxes)All Service ChargesRs 20 (excluding taxes)Payment modeCash, Cheque, DD subject to realization(As mentioned onindiapost.gov.in)Income Tax benefitsThere is an additional tax benefit up to Rs 50,000 for investment in NPS (All Citizen Model), said India Post.