Incorporated during the Swadeshi movement, the South Indian Bank, which was among the first banks from Kerala to successfully introduce the core banking system is now the third largest private sector bank network in India. The South Indian Bank provides a wide range of services including personal banking, NRI banking and business banking among others.
PoP: South Indian Bank
The Pension Fund Regulatory and Development Authority (PFRDA) appointed the South Indian Bank as a Point of Presence (PoP). The South Indian Bank has, in turn, zeroed in on around 750 select branches as Point Of Presence Service Provider (POP-SP). From 2009 onwards, the new pension scheme is available for all citizens of the country in addition to government employees. A new pension scheme can be opened by any individual aged between 18 to 60 years not excepting NRIs. Since the South Indian Bank is a Point of Presence, all prospective subscribers can approach the designated branches of the bank to receive their Permanent Retirement Account Number (PRAN) and make contributions.
Features of South Indian Bank New Pension Scheme
- Age: The entry age for both tier I and tier II accounts is 18 to 60 years.
- Minimum and maximum contribution: The minimum contributions required to open new pension scheme tier I and tier II accounts are Rs.500 and Rs.1000 respectively. There is no limit to the maximum. The minimum contribution excluding bank charges for tier I and tier-II accounts is Rs.6000 and Rs.250 respectively.
Availability: The South Indian Bank offers the new pension scheme in three modes as listed below:
Citizens model: The scheme is available to all citizens in addition to NRIs. The two accounts under this model are as follows:
- Tier-I account: This is a non-withdrawable account till 60 years
- Tier-II account: A subscriber can withdraw from this account. It is important to note that tier I account should be opened to open a tier II account.
- NPS Lite: This model is aimed at marginal investors and help them build a corpus to buy an annuity in their old age.
- Corporate model: All registered subscribers receive their individual PRAN. Corporates make contributions to the pension account. The selection of pension fund managers is done by corporates for their employees
- Citizens model: The scheme is available to all citizens in addition to NRIs. The two accounts under this model are as follows:
Vesting criteria: The following criteria is applicable
- Before 60 years: 80% of the pension amount has to be used to buy an annuity whereas the remaining can be withdrawn/received as a lump sum. Use NPS calculator to get an estimate of your scheme amount.
- Between 60 to 70 years of age: 40% of the savings has to be used to buy an annuity whereas the remaining can be withdrawn as a lump sum upon attainment of 60 years or in a phased manner, as chosen by the subscriber.
- Death: The nominee will get 100% of the pension amount in a lump sum.
Benefits of South Indian Bank New Pension Scheme
The benefits of South Indian Bank new pension scheme are as follows:
- Voluntary: All citizens and NRIs are eligible to open this account
- Regulated: The PFRDA regulates the new pension scheme with focus on transparency, in terms of investment criteria. NPS trust reviews the performance of fund managers
- Portable: Subscribers can operate the account from any location across the country, even if you change your pension fund manager or city
- Flexible: Investors can choose his or her own fund manager and fund option
- PRAN: Subscribers will receive a Permanent Retirement Account Number (PRAN) Card
Documentation Required for New Pension Scheme
Proof of identity: The following documents can be submitted as proof of identity
- Ration card
- PAN card
- Driving License
- Aadhar card
Proof of address: The following documents can be submitted as proof of address
- Electricity bill
- Telephone bill
- Bank passbook
- Property or house tax receipt
- House lease agreement
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