Frequently Asked Questions

After the registration forms are submitted to HDFC securities Ltd, online PRAN is generated. Within 20 working days of the PRAN number generation, the PRAN card is printed and dispatched by NSDL-CRA.

The first contribution cheque would be debited post PRAN generation.

The subscriber needs to contact the POP (i.e. HDFC securities Limited) for checking the status of the NPS application.

The PRAN Card is dispatched to the registered address within 20 working days from the day of PRAN generation by NSDL-CRA. During this period, a subscriber can go to https://cra-nsdl.com/CRA/ and check the status of the PRAN kit using the PRAN number.

The NPS offers you a choice of two methods to invest your money:

• Active choice - Individual Funds (Asset Class E, Asset Class C, and Asset Class G )
• Auto choice - Lifecycle Fund

No. You have to select either Active Choice or Auto Choice as your option when making investments under NPS.

The subscriber shall be allowed to exercise the choice only once, at any time during the financial year.

Yes. You transfer savings from Tier II to Tier I, but not vice versa.

At maturity, withdrawal up to 40% of the corpus amount is tax free and the remaining 20% can be withdrawn in maximum 10 annual installment, which will reduce the tax liability as the individual will fall in the lower tax bracket or nil tax bracket, OR the remaining 60% of the corpus can be used for purchasing an annuity, thus no tax liability on the corpus used for purchasing the annuity on the subscriber.

If a subscriber wishes to exit from NPS before attaining the age of 60, he/she can withdraw up to 20% of the sum accumulated after 10 years. The subscriber has to buy an annuity with the rest of the money. The commencement of the annuity depends on the annuity plan / scheme offered by the ASPs. If minimum contributions are not made as stipulated, the account will be frozen and can be reactivated only by paying the penalty of Rs. 100 + minimum contribution amount.

In the event of death of the subscriber, the beneficiary submits a withdrawal request to the associated POP-SP who will enter the request in the CRA system. After the request is processed, a cheque is issued favouring the beneficiary and forwarded to the associated POP.

The option to select the ASP and the annuity scheme lies with the subscriber.

In case of normal retirement, how much time would it take to start pension?

The pension payment would start from the next month after the subscriber chooses the Annuity Service Provider, Annuity Scheme and furnishes all the necessary documents related to it.

The pension payment would start from the next month after the subscriber chooses the Annuity Service Provider, Annuity Scheme and furnishes all the necessary documents related to it.