NPS Glossary
The NPS vocabulary in plain language — the accounts, the institutions, the investment terms, and the exit and tax words you will meet across the system.
Accounts and IDs
PRAN
Permanent Retirement Account Number — your unique 12-digit NPS account number, valid for life.
Tier I
The core NPS retirement account, with a lock-in and tax benefits.
Tier II
An optional, flexible savings account with no lock-in and no tax benefit.
NPS Vatsalya
The NPS variant for minors, opened and run by a guardian until the child turns 18.
eNPS
The online portal for registration, contribution, and servicing, run on CRA infrastructure.
D-Remit
Direct Remittance — contributing via a virtual account to get same-day NAV.
All Citizen Model
The NPS model any individual aged 18–85 can open on their own, without an employer.
Corporate NPS
NPS offered through an employer, who may also co-contribute to your account under this model.
Government Sector
The NPS model for central and state government employees, with employer contributions and a default scheme.
I-PIN
The internet login PIN (password) used to access your CRA portal or mobile app.
PRAN Card
The physical or electronic card carrying your PRAN and basic account details.
Nominee
The person(s) you name to receive the corpus on death — up to three, with shares totalling 100%.
Institutions
PFRDA
The Pension Fund Regulatory and Development Authority, the statutory regulator of NPS.
NPS Trust
The legal holder of NPS assets, with subscribers as beneficial owners.
CRA
Central Recordkeeping Agency — Protean, KFin, or CAMS — that maintains PRANs and records.
PFM
Pension Fund Manager, the licensed manager that invests your contributions.
PoP
Point of Presence — the bank or intermediary that opens and services accounts.
ASP
Annuity Service Provider — the life insurer that pays your pension at exit.
Trustee Bank
The bank that receives contributions and routes funds to the PFMs.
Custodian
The independent entity that holds NPS securities, separate from the PFMs.
Nodal Office
The government office (DDO / PAO / PrAO) that processes NPS for government-sector employees.
IRDAI
The insurance regulator that oversees the annuity providers who pay your pension.
Retirement Adviser
A PFRDA-registered intermediary authorised to advise subscribers on NPS.
NPS Ombudsman
The independent authority that hears grievances not resolved at lower levels.
Investment terms
Asset classes (E/C/G)
Equity (E), Corporate debt (C) and Government securities (G).
Active Choice
You set the percentage split across the asset classes yourself.
Auto Choice
An age-based lifecycle fund that tapers equity as you get older.
Lifecycle funds (LC75/50/25)
Auto Choice funds capping early-career equity at 75%, 50%, or 25%.
Balanced Life Cycle Fund
An Auto Choice option introduced in October 2024, carrying higher equity into the mid-40s and 50s.
Multiple Scheme Framework (MSF)
A 2025 framework letting one PRAN hold several schemes, with up to 100% equity.
NAV
Net Asset Value — the per-unit price of a scheme, updated each business day.
Scheme preference
Your chosen PFM, choice type, and asset allocation.
Alternative Assets (A)
A former asset class of alternative investment funds (REITs, InvITs), once capped at 5% under Active Choice. PFRDA merged it into Schemes C and E in December 2025, so it is no longer a separate class.
AUM
Assets Under Management — the total value of contributions and gains a PFM manages for you.
Investment Management Fee (IMF)
The slab-based fee a PFM charges on AUM, among the lowest of any regulated product.
Glide path
The Auto Choice rule that gradually shifts money from equity to debt as you age.
Rebalancing
Periodic realignment of your holdings back to their target E/C/G allocation.
Exit and annuity
Superannuation
Normal exit from NPS at age 60 or the defined retirement age.
Premature exit
Exit before superannuation, directing a larger share of the corpus to annuity.
Partial withdrawal
Taking part of your own contributions before exit, for permitted reasons.
Annuity
A lifelong pension bought from an ASP with part of the corpus at exit.
SLW
Systematic Lump Sum Withdrawal — drawing the lump sum in phased instalments up to age 85.
Continuation / Deferment
Keeping the account open, or delaying the lump sum or annuity, up to 85.
Corpus
The total accumulated value of your NPS account at any point.
Lump Sum
The portion of the corpus taken as cash at exit — up to 60% at superannuation.
Return of Purchase Price (ROP)
An annuity option that pays a lower pension but returns the purchase price to your nominee on death.
Joint-Life Annuity
An annuity that continues to your spouse after your death.
40% Annuitisation Rule
At normal exit, at least 40% of the corpus must buy an annuity; the balance can be withdrawn.
Death Benefit
The payout made to your nominee or legal heir if you die during the account’s life.
Tax and rules
80CCD(1)
Deduction for your own NPS contribution, within the overall 80C ceiling.
80CCD(1B)
An extra deduction of up to ₹50,000, over and above 80C.
80CCD(2)
Deduction for employer NPS contributions; also available under the new tax regime.
KYC
Know Your Customer — the identity and address verification required to operate an account.
Inter-Sector Shifting (ISS)
Moving a PRAN between the Government, Corporate, and All Citizen models.
CGMS
Central Grievance Management System — the CRA platform for lodging complaints.
Vesting age
The age at which normal exit and pension benefits become available, generally 60.
Section 10(12A)
Makes the up-to-60% lump sum taken at superannuation exempt from tax.
Section 10(12B)
Exempts partial withdrawals of up to 25% of your own contributions.
EEE Status
Exempt-Exempt-Exempt — contributions, growth, and most of the final payout are tax-free.
FATCA / CRS
A self-certification of tax residency you provide at registration, as the law requires.
Re-KYC
Periodic re-verification of your identity and details to keep the account compliant.
Minimum Contribution
₹500 opens a Tier I account and ₹1,000 a year keeps it active; missing it freezes the account.
Definitions are compiled from PFRDA, the NPS Trust, and CRA glossaries and reflect the 2025 framework changes. They are simplified for general understanding.
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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