Frequently Asked Questions
Short, straight answers to the questions subscribers ask most — grouped by theme.
The basics
What is a PRAN, and can I have more than one?
A PRAN is your 12-digit Permanent Retirement Account Number, issued once and valid for life. You should hold only one PRAN — it stays with you across jobs and cities, so you never open a second account.
Who can open an NPS account?
Any Indian citizen aged 18 to 70 can join, as can NRIs and OCIs. Minors can be enrolled by a guardian under NPS Vatsalya, which converts to a regular account at 18.
What is the difference between Tier I and Tier II?
Tier I is the core retirement account with a lock-in and tax benefits. Tier II is an optional, flexible add-on with no lock-in and no tax benefit — think of it as a voluntary savings wallet that uses the same PFM and CRA.
How is NPS different from EPF or the old pension?
NPS is a defined-contribution scheme: your payout depends on what you put in and the market returns it earns, not a fixed government promise. It is portable and market-linked, unlike a fixed-rate provident fund or a defined-benefit pension.
Accounts and contributions
What is the minimum I need to contribute?
Tier I needs at least ₹1,000 in a financial year to stay active, with a minimum of ₹500 per contribution. There is no upper limit on how much you can contribute.
What is D-Remit and why use it?
Direct Remittance (D-Remit) lets you push money to a virtual account and get same-day NAV when funds arrive before the cut-off (around 11 AM). It is the cleanest way to run a SIP-style monthly contribution.
What happens if I miss the minimum contribution?
The PRAN is frozen. You reactivate it by paying the minimum due plus a small prescribed charge, which can be done online through eNPS or your CRA.
Can I hold more than one scheme now?
Yes. Since the Multiple Scheme Framework went live in October 2025, one PRAN can hold several schemes at a CRA, letting you diversify across strategies under a single account.
Investing and returns
Should I pick Active or Auto Choice?
Auto Choice runs an age-based lifecycle glidepath and is a fine default. Active Choice lets you set the split across equity, corporate debt, and government securities yourself — better if you want control and understand the risk.
What is the Multiple Scheme Framework (MSF)?
MSF, effective October 2025, lets a subscriber hold and manage multiple NPS schemes under one PRAN at a CRA, so you can align different pots of money to different goals.
Can I really invest 100% in equity?
In schemes created under the Multiple Scheme Framework you can opt for up to 100% equity, beyond the earlier 75% cap. Higher equity means higher risk — match it to your horizon.
How often can I change my fund manager or scheme?
You can change your Pension Fund Manager once per financial year, and adjust scheme preference or allocation within the frequency limits PFRDA prescribes.
Tax
What tax deductions does NPS give?
Your own contribution is deductible under 80CCD(1) within the 80C ceiling, with an extra ₹50,000 under 80CCD(1B). Employer contributions are separately deductible under 80CCD(2).
Is NPS worth it under the new tax regime?
The 80C and 80CCD(1B) breaks do not apply under the new regime, but the employer contribution deduction under 80CCD(2) does — which is why the Corporate route still helps salaried subscribers who have opted for the new regime.
How is my money taxed when I withdraw?
Under current rules the lump-sum portion at exit is largely tax-favoured, while the annuity pension is taxed at your income-tax slab in the year you receive it. Confirm against the prevailing provisions.
Withdrawal and exit
Can I take money out before 60?
Yes, in limited ways: partial withdrawals from your own contributions for set reasons (education, marriage, home, medical, and more), or a premature exit that directs a larger share of the corpus to an annuity.
How much can I take as a lump sum at retirement?
If your total corpus is ₹8 lakh or less, you can take 100% as a lump sum. Between ₹8 lakh and ₹12 lakh you can take up to ₹6 lakh as a lump sum, with the balance buying an annuity; above ₹12 lakh you can take up to 80% as a lump sum, with at least 20% going to an annuity — following the 2025 amendment.
Can I keep my NPS account after 60?
Yes. You can continue contributing and defer the lump sum or annuity purchase up to age 85 (raised from 75), which lets the corpus keep compounding if you do not need the money yet.
Charges and servicing
What are the charges on an NPS account?
NPS is among the lowest-cost regulated products. A PoP levies a small one-time onboarding fee and an annual charge on assets, alongside modest CRA and fund-management fees adjusted through NAV. Check the current PoP charge structure before you sign up.
How do I raise or track a grievance?
Lodge it through the CGMS on your CRA or the PFRDA Pension Sahayak portal, note the token number, and track or escalate from there. See the Help & Support page for the full path.
Is my money safe in NPS?
NPS is regulated by PFRDA and holds assets under the NPS Trust, with securities held by an independent Custodian and cash moved by a separate Trustee Bank — a deliberately unbundled structure. Returns remain market-linked and are not guaranteed.
Answers are compiled from PFRDA (pfrda.org.in), the NPS Trust (npstrust.org.in), and CRA guidance, and reflect the 2025 rule changes. They are general and educational, not personalised advice.
NPS Desk is an independent educational platform and is not affiliated with PFRDA, the NPS Trust, or any CRA. Rules and figures change — verify on the official PFRDA, NPS Trust, or CRA channels before acting.
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