To contribute in Tier I and Tier II account, the subscriber needs to deposit the contribution amount along with duly filled NCIS (NPS Contribution Instruction Slip) to any POP-SP. In case of Corporate subscribers, contributions are deducted from the Subscribers salary and the Corporate (CHO) will transfer the contribution to the POP who inturn ensures the credit to the respective subscriber accounts. A Corporate subscriber may also make voluntary contributions to his/her account by contacting the associated POP of the Corporate. Susbcriber can also opt for online transfer of funds towards his Tier I and Tier II account. For details the Subscriber may contact the POP-SP providing such facilities.
In both Tier I and Tier II account there has to be atleast one contribution in a financial year.
A subscriber is required to make his / her first contribution at the time of applying for registration at any POP-SP with NCIS (NPS Contribution Instruction Slip) form.
Subscriber is required to make contributions subject to the following conditions
Minimum amount at the time of Account opening - Rs 500 (Optional for Corporate subscriber)
Minimum amount per contribution - Rs 500
Minimum contribution per year - Rs 6,000
Minimum number of contributions in a year - one
Over and above the mandated limit of a minimum of one contribution, a subscriber may decide on the frequency of the contributions across the year as per his / her convenience. No maximum limit has been mandated.
For Tier II, minimum contribution requirements
1.Minimum contribution at the time of account opening - Rs.1000
2.Minimum amount per contribution - Rs.250
3.Minimum number of contributions in a year - one
4.Maintain minimum balance of Rs.2000 at the end of each financial year.
A subscriber can contribute to NPS from any of the POP/ POP-SP despite not being registered with them and from anywhere in India. List of POP-SPs are available at CRA website www.npscra.nsdl.co.in. Subscriber can select nearest POP-SP. In case of Corporate subscribers the Corporate (CHO) will transfer the contribution to the POP who in turn uploads the contribution and ensures credit to the subscriber account. A Corporate subscriber may also make voluntary contributions to his/her account by contacting the associated POP of the Corporate.
The subscriber will have to bear a default penalty of Rs. 100 alongwith a minimum contribution of Rs. 500/- and the account would become dormant. In order to reactivate(unfreeze) the account, the subscriber needs to submit the UOS-S10 form to its source POP-SP and would have to pay the minimum contribution along with the penalty. The form can be downloaded from our website www.npscra.nsdl.co.in. The dormant account shall be closed if the account value falls to zero.
For contribution, NAV will be allotted and units will be credited once there is a match between the contribution details submitted by POP / POP-SP to CRA and corresponding funds receipt confirmation given by Trustee Bank. As mentioned in the offer document, there will be a time lag between the time a subscriber deposits Cash/Demand Draft/Cheque with the POP-SP and the of credit of units to the Permanent Retirement Account, which may range upto 15 working days for initial contribution & 7 working days for subsequent contributions. Once the contribution is credited to his / her account, an email alert as well as a SMS alert will be sent to the E-Mail ID and mobile number of the subscriber registered in CRA system.
Under NPS, Subscriber accounts are identified by unique PRAN allotted to them by CRA. If subscriber has opted for both Tier I and Tier II in the registration form , then he can start subsequent contributions in both Tier I and Tier II once PRAN is known and need not wait for receiving the PRAN Kit. However, if he has opted for only Tier I in the registration form , then he needs to submit a copy of the PRAN Card along with the duly filled UOS-S10 form to activate Tier II account.