ICICI Bank National Pension System

The eligibility criteria of the scheme are mentioned below:

1. The individual must be an Indian citizen.
2. Individuals between the ages of 18 years and 60 years can invest in the NPS scheme.
3. All Know Your Customer (KYC) norms must be followed by the subscriber. It is mandatory for subscribers to submit all the KYC documents.

Withdrawal or Exit from the ICICI NPS

When subscribers attain the age of 60 years or 65 years: Upon attaining the age of 65 years, subscribers can withdraw up to 60% of the amount that has been contributed in a lump sum. The remaining 40% must be used to buy annuity which will provide a monthly pension to the subscribers. However, the lump-sum withdrawal can be deferred by subscribers until they reach the age of 70 years old.

In case subscribers retire before the age of 60 years, they will be allowed to withdraw the amount by initiating a request on the Central Recordkeeping Agency (CRA) system www.cra-nsdl.com. However, the request will have to be verified on the CRA system by the Nodal Office.

Before the subscribers attain the age of 60 or 65 years: In case subscribers want to withdraw the contribution amount before attaining the age of 60 or 65 years, they will only be able to withdraw 20% of the amount in a lump sum and the rest of the 80% must be used to purchase annuity.

In case the subscriber passes away: In case the subscriber passes away during the tenure of the scheme, the nominee or legal heir will receive the entire 100% of the amount that has been contributed in a lump sum. In such cases, no annuity needs to be purchased.

The process for withdrawals is available online, and processing and settlement of the claims are handled by the PFRDA. The PFRDA has set up the NPS Claim Processing Cell to handle the entire claims process.

Features of ICICI NPS

Some of the main features of the ICICI NPS are given below:

1. Investment options: Various investment options and choices of Pension Fund Managers are available under the NPS scheme offered by ICICI Bank. Subscribers are also allowed to switch the investment option and fund manager in case they are not happy with the performance of the investment.
2. Market related: The returns that are generated from the scheme is completely dependent on the market.
3. Contributions towards the scheme:
   1. Tier 1 account: The minimum contribution that must be made at the time of opening the account is Rs.500. The minimum contribution that must be made towards a Tier 1 account in a year exclusive of taxes and any charges is Rs.1,000. Subscriber will also have to make a minimum of one contribution in a year.
   2. Tier 2 account: A minimum contribution of Rs.1,000 must be made at the time of opening a Tier 2 account. Subsequent contributions must be a minimum amount of Rs.250.
4. Type of distribution: Individuals have the option to choose the type of distribution. The two types of distributions available are mentioned below:
   1. Active Choice
   2. Auto Choice

If the individual opts for active choice, he/she must choose a certain percentage of the contribution to be provided towards equity, gilt, and corporate. The maximum percentage of the contribution that a subscriber can make towards equity is 75%.

1. Transfer of scheme: Unlike most other pension schemes, the NPS scheme can be transferred across all locations and jobs throughout India easily. The process for the transfer is also hassle-free.
2. Modes of payment: Contributions towards the scheme can be made in the form of Demand Draft (DD), cheque, or cash at any chosen POP-SP. However, ICICI Bank does not accept any cash payments above Rs.25,000. Outstation cheques are also not accepted by ICICI Bank.
3. Opening of an NPS account: The process to open an NPS account is simple and easy. Subscribers who have opened an NPS account will also receive a distinctive Permanent Retirement Account Number (PRAN) that remains the same throughout their employment life.
4. Regulation of the scheme: The regulation of the scheme is handled by the PFRDA. Under PFRDA, all investment norms are transparent, and provide regular monitoring and performance reviews of the fund managers.

Working of ICICI National Pension System

Under the NPS scheme, the Point of Presence (PoP) centre that ICICI Bank has appointed is the Pension Fund Regulatory and Development Authority (PFRDA). Designated branches have also been selected by ICICI Bank, which act as the Point of Presence Service Providers (PoP-SP), that help in carrying out the activities of the NPS scheme.

1. The savings of an individual is accumulated in a pension fund.
2. PFRDA fund managers regulate the funds that are invested as per a list of pre-approved guidelines that are diversified into shares, corporate debentures, bills, and government bonds.
3. Depending on the returns that have been made on the investments, there is a growth in the accumulated contributions.

Subscribers under the scheme can either withdraw a part of the accumulated contribution as a lump sum or invest in life annuity from a PFRDA approved life insurance organisation.