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New Pension System - NPS

Most Important Terms & Conditions(MITC)

  1. The New Pension System (NPS) is a scheme run by the Government of India and our Bank is one of the agents authorized to accept contribution and assist in opening accounts. THE RETURNS IN THIS SCHEME ARE ENTIRELY MARKET DRIVEN.
  2. For NPS account opening, subscriber(S) should be in the age group of 18-60 years.
  3. As per KYC norms Photo Id proof, Date of birth proof and Address proof are required to be submitted along with application form
  4. In case of Tier I:
    • Minimum contribution at the time of account opening -Rs.500/-
    • Minimum amount per contribution - Rs. 500/-
    • Minimum Account Balance at the end of FY - Rs. 6000/-
    • Minimum number of contributions in a year - 1
  5. In case of Tier II:
    • Minimum contribution at the time of account opening -Rs.1000/-
    • Minimum amount per contribution - Rs. 250/-
    • Minimum Account Balance at the end of FY-Rs. 2000/-
    • Minimum number of contributions in a year - 1
  6. An active Tier I account will be a pre-requisite for activation of a Tier II account.
  7. In case of Composite Application for Tier I and Tier II both, Minimum contribution at the time of account opening is Rs. 1500/-.
  8. In case of Tier II or Composite application, a cancelled cheque is also required to be submitted along with the application form.
  9. Following costs are to be borne by the Subscriber(s) at the time of registration and/or performing any transaction. The contribution will be remitted, net of bank charges.
    • An Initial subscriber(s) registration charge of Rs.100/- and an ad valorem transaction charge of 0.25% of the initial contribution amount from Subscriber(s) subject to a minimum of Rs.20 and a maximum of Rs. 25,000/-. Plus applicable service tax.
    • Any subsequent transaction involving contribution upload - 0.25% of the amount subscribed by the NPS subscriber(s), subject to minimum of Rs.20/- and a maximum of Rs. 25000/-. Plus applicable service tax.
    • Any other transaction not involving a contribution from subscriber(s) - Rs 20/- Plus applicable service tax.

       

  10. Subscriber(s) can register only through Bank's designated branches i.e. Point of Presence-Service Provider (POP-SP).

     

  11. Exit from New pension System (NPS):-

     

    • At any point in time before 60 years of age: Subscriber(s) would be required to invest at least 80% of the pension wealth to purchase a life time annuity from any IRDA - regulated life insurance company. Rest 20% of the pension wealth may be withdrawn as lump sum.
    • On attaining the Age of 60 years and up to 70 years of age: At exit subscriber(s) would be required to invest minimum 40% of their accumulated savings (pension wealth) to purchase a life time annuity from any IRDA-regulated life insurance company. Subscriber(s) may choose to purchase an annuity for an amount greater than 40%. The remaining pension wealth can either be withdrawn in a lump sum or in a phased manner, between age 60 and 70, at the option of the subscriber(s).
    • Death due to any cause: In such an unfortunate event, option is available to the nominee to receive 100% of the NPS pension wealth in lump sum. However, if the nominee wishes to continue with the NPS, he/she shall have to subscribe to NPS individually after following due KYC procedure.
Click here to download NPS forms.

Click here to view list of POP-SPs

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