NPS Rule Change: National Pension System is a voluntary pension scheme launched by the Central Government. In this, the investor gets an opportunity to invest in both equity and debt. In NPS, an investor can also choose to invest in 75 per cent equity. With this, he can withdraw up to 60 percent of his deposit after the completion of the term of the plan, while the remaining 40 percent is used for annuity, so that the investor can be given pension after 60 years of age.
Pension regulator Pension Fund Regulatory and Development Authority (PFRDA) in the country has made some changes in the NPS rules in recent days, which we are going to tell about here.
Trail commission payment to POP
In order to support POP, Point of Purchase, PFRDA has now issued a new rule regarding trail commission. According to this, now NPS account holders will have to pay trail commission to the POP. Along with this, PFRDA clarified that the MPS contribution made through D-Remit will attract trail commission like e-NPS (contribution to NPS online mode). This rule has been implemented on September 1, 2022.
According to the information given by PFRDA, the trail commission paid to the POP will be a minimum of Rs 15 and a maximum of Rs 10,000 or 0.20 percent of the contribution amount.
NPS e-Nomination
PFRDA has recently changed the e-nomination process for government and non-government sector employees. According to the new rules, the nodal office will now have the right to accept or reject the application for e-nomination made by the NPS account holder. If the nodal office does not take any action on the same within 30 days, then the application for e-nomination will automatically go to the Central Recordkeeping Agency (CRA). This rule will come into effect from 1 October 2022.
Pay by credit card
Under the new rules issued by PFRDA, NPS account holders residing in Tier-II cities will no longer be able to contribute to NPS through credit cards. This notification was issued by PFRDA on 3 August 2022. Since then, credit card contributions to NPS account holders in Tier-II cities have been banned.
