Punjab National Bank NPS

National Pension Scheme Overview

The National Pension Scheme (NPS) is a voluntary pension plan aimed at building a retirement corpus during your working years. It ensures regular pensions post-retirement, helping secure financial stability in your golden years.

As a defined contribution plan, the pension amount depends on your investments, which are allocated to market-linked funds to maximise returns and ensure inflation-adjusted growth.

Salient Features of the NPS Scheme

Key highlights of the NPS retirement plan scheme include:

• Regulated by PFRDA: The Pension Fund Regulatory and Development Authority manages the scheme.

• Choice of Fund Managers: Choose from eight PFRDA-authorized fund managers, with the flexibility to switch during the tenure.

• Investment Options:

  • Asset Classes: Invest in Asset Class A (alternative investments), C (corporate debt), E (equity), or G (government securities).

  • Active Choice: Manually allocate funds based on your risk profile.

  • Auto Choice: Funds are auto-allocated across asset classes based on your selected risk level.

• Account Types:

  • Tier I Account: Mandatory with restricted withdrawals, offering partial withdrawals for specific needs.

  • Tier II Account: Voluntary, with flexible withdrawals.

• Minimum Contributions: Start a Tier I account with ₹500 or an NPS Tier II account with ₹1,000. Contributions are required at least once annually until maturity.

• Maturity Benefits: Withdraw 60% of the corpus as a lump sum, while the remaining 40% funds guaranteed lifelong pensions.

Investing in Punjab National Bank NPS

PNB serves as an authorised Point of Presence (POP) for NPS investments. You can open an NPS account in PNB via branch visits or through their online portal.

1. Through the Bank Branch

   Visit any Punjab National Bank branch to invest in NPS offline. These branches serve as Point of Presence Service Providers (POP-SPs).

   • Download the PNB NPS form.

   •  Fill out the PNB NPS form and submit it with KYC documents, the initial contribution amount, and applicable charges.

   • Once processed, you’ll receive a Permanent Retirement Account Number (PRAN) for your account.

2. Through the Bank’s Website

   You can open an NPS account online in PNB via the official website: https://www.pnbindia.in/nps.html

   • Click on Subscriber Registration: Click Here to access the NSDL portal.

   • Choose registration via Aadhaar or PAN and upload the required documents.

   • Make the initial contribution and pay applicable charges to activate your account.

Documents Required for NPS in PNB

To open an NPS account with PNB, submit the following:

• Identity proof

• Address proof

• Age proof

• Passport-sized photographs

• PAN card and cancelled cheque (if registering via PAN)

• Aadhaar card (if registering via Aadhaar)

Tax Benefits of NPS

Investing in the NPS scheme offers significant tax advantages:

• Section 80CCD(1): Deduct up to 10% of your gross income, capped at ₹1.5 lakhs annually.

• Section 80CCD(1B): Additional deduction of ₹50,000 for extra investments.

• Section 80CCD(2): Employer contributions (up to 10% of basic salary + DA) are tax-exempt in section 80ccd(2).

• Partial Withdrawals: Tax-free under specified conditions.

• Maturity Benefits:

  • 60% of the corpus is tax-free.

  • Annuity payments are taxable per the applicable income tax slab.

Why Choose PNB for NPS?

PNB provides seamless investment options for NPS through both offline and online channels. The bank’s PNB NPS online facility ensures convenience, while its vast branch network simplifies offline investments. By opting for NPS accounts in PNB, you can build a robust retirement fund while enjoying tax benefits and professional fund management.