Bank of Baroda National Pension Scheme

What is NPS Bank of Baroda?

NPS is an initiative by the Central Government. It is open to the public, private, and even the unorganized sectors except for the armed force. 'Subscriber' is a person (employee) who pays for the NPS. This scheme encourages the subscribers to invest in a pension account.

You get a guaranteed pension after it matures from the accumulated corpus of the investment period. The NPS BOB is a market-linked scheme wherein the returns accumulate as per the market trends. This scheme is portable for all the jobs and locations with tax benefits under Section 80C and Section 80CCD.

What are the Benefits of BOB NPS?

National Pension Scheme Bank of Baroda offers multiple benefits. Let us explore some of them.

1. Tax Benefits

   • Contributions to the Tier-I account permit a deduction under Section 80 CCD (1). The limit of deduction is Rs.1.5 lakhs which includes under Section 80CCE.

   • An extra deduction under Section 80CCD (1B) goes up to Rs.50, 000 for Tier 1 accounts. This is above the regular 80C deduction for up to Rs. 1.5 lakhs.

   • There are tax benefits for the subscribers of corporate sectors under Section 80CCD (2). Employer's contribution towards the employee up to 10% of basic salary plus dearness allowance (DA) is deductible from the taxable income with no limits.

   • An individual subscriber has a deduction of a maximum of 10% of the gross income as per Section 80CCD (1). It includes the overall ceiling of Rs.1.5 lakhs, under Section 80CCE.

   You can avail of multiple benefits in both ways by investing in the scheme and withdrawing from it.

   *Tax benefit is subject to changes in tax laws. Standard T&C apply.

2. NPS BOB Benefits

   • You can select the NPS contribution amount every year as an account subscriber.

   • You can easily open an NPS account in the Bank of Baroda. It links to the Central Recordkeeping Agency (CRA), which identifies a unique Permanent Retirement Account Number (PRAN).

   • You can choose your fund scheme and investment option. It provides flexible options to invest as per your financial goals.

   • The subscriber can operate the account from any location in India. NPS is portable even after you change your job, city, or manager.

   • The PFRDA Authority monitors and regulates the NPS with investment transparency and strict performance reviews of managers.

NPS Scheme Contributions

BOB NPS accounts are available in two categories as explained below.

1. TIER-I account

   It is mandatory to subscribe to the NPS scheme. This account does not allow withdrawals before maturity. Subscribers get tax benefits. The minimum contribution you can make to open this account is Rs 500. You need to deposit a minimum of Rs.1000 in one financial year to keep the account active. The maximum contribution is limitless.

2. TIER-II account

   You need to have a valid Tier-I NPS account to open a Tier-II account. This account is voluntary, flexible, and you can make free withdrawals. It does not provide tax benefits except for the Central Government employees under specific terms and conditions.

   You need to make a minimum contribution of Rs 1000 to open this account. You need to contribute at least Rs 250 each financial year to keep the account active.

   *Tax benefit is subject to changes in tax laws. Standard T&C apply.

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NPS-Lite Account of BOB

An NPS-Lite account provides a pension scheme for the economically challenged sections of our society. The prime motive of BOB to launch NPS-Lite is to provide financial assistance to marginalized subscribers.

The NPS Lite account ensures a secure retirement plan for the subscribers not covered under any PPF or retirement schemes. For subscribers contributing annually between Rs 1000 and Rs 12000, the Indian Government provides an incentive of Rs 1000.

1. Benefits and Features of NPS-Lite

   Here are some major benefits offered by NPS-Lite:

   • Contributions to the scheme can be regular or monthly basis

   • Subscribers get a PRAN card from NSLD

   • Consists of a nomination facility

   • NPS-Lite allows withdrawal of funds

   • NPS Lite account doesn't qualify for a loan

   • Matures at the age of 60 of the subscriber

   • Offers the received pension as the regular pension to the subscriber

2. Eligibility Criteria for BOB NPS

   The eligibility parameters for opening an NPS account in the Bank of Baroda are:

   • Individuals must be between 18 and 70 years of age on the submission date of application.

   • Up to 75 years of age, you can continue an NPS account.

   • You have to be an Indian citizen, whether a resident or an NRI/OCI.

   • You can join the scheme as a corporate or an individual.

What are the Documents Required?

You need to submit the following documents to register for the NPS scheme. You can also fill the NPS application form at any branch of BOB.

• Identity Proof- Photo identity card, Passport, Ration card with photo, PAN card, or Aadhaar card

• Address Proof- Passport, Ration card with photo, Aadhaar card, Photo identity card, or Bank Passbook

• Age Proof- High School or equivalent certificate issued by Central/State Board indicating date of birth/ birth certificate

How to Open an NPS Account in BOB?

NPS BOB offers you two easy modes of opening an account: Online and Offline.

1. Investing online:

   • Visit the official website of Bank of Baroda and go to its NPS page. 

   • Click on 'explore' under the option Open NPS account online.

   • You need to enter all the required details in the form.

   • You need to upload your KYC documents and the scanned copy of your signature.

   • Make the payment for your first contribution.

   • Charges for NPS registration and Initial contribution payment in BOB online:

   Charge Type	Amount
   NPS Registration Charges	Rs.200 plus GST
   NPS Contribution Charges	Minimum Rs.20  Maximum Rs.25, 000 + GST (0.25% of Contribution Amount )
   Payment Gateway Charges	As per the transaction

   Baroda Payment Gateway Charges / MDR (excluding taxes)

   ONUS Debit Card	Rs.5/ transaction
   ONUS Net Banking	Rs.5 /transaction
   Credit Card	0.90% of the transaction amount
   Debit Card * (OOFUS)	Amounts up to Rs.2000 Master Card/ Visa Debit Card: 0.40% RuPay Debit Cards: Nil Amounts more than Rs.2000 Master Card/ Visa Debit Card: 0.85% RuPay Debit Cards: Nil
   Net Banking (Non-BOB banks)	Rs.13 /transaction
   UPI*	Nil

   • The bank verifies your details and opens your NPS BOB account.

2. Investing Offline:

   • Visit the Bank of Baroda branch closest to you.

   • Fill up the NPS registration form.

   • Submit the form and your KYC documents.

   • Offline charges for payment of initial contribution and NPS registration in BOB :

   Charge Type	Amount
   Registration Charges	Rs.200 + GST
   Contribution Charges	Minimum Rs.20  Maximum Rs.25, 000 + GST (0.25% of Contribution Amount )

   • The bank verifies your details and opens your NPS BOB account offline.

In Conclusion

NPS Bank of Baroda is helpful during your retirement years. Opening and managing NPS accounts in the Bank of Baroda are accessible in different modes.

The scheme provides benefits to various levels of income classes and facilitates affordable investment and convenient returns. However, you must conduct your research before making the final decision.

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