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National Pension Scheme (NPS), a government-sponsored pension scheme, was launched in January 2004 for government employees. It was opened to all sections in 2009. A subscriber can contribute regularly in a pension account during her working life, withdraw a part of the corpus in a lumpsum and use the remaining corpus to buy an annuity to secure a regular income after retirement.


The Government has made following three relaxation in NPS Scheme:

Relaxation 1. Partial withdrawal during the service: The Pension Fund Regulatory and Development Authority (PFRDA), with an objective to meet the subscriber’s sudden financial requirement enrolled under NPS, has liberalized norms for partial withdrawals which also include reduction of requirement of minimum years of being enrolled under NPS from 10 years to 3 years from the date of joining. Suitable amendments were made through “Pension Fund Regulatory and Development Authority (Exits and Withdrawals under the National Pension System) (First Amendment) Regulations, 2017 and the same has been notified on 10.08.2017.

Relaxation 2. Increase in the joining age under NPS: With an objective to allow individuals (under NPS-All Citizen Model and Corporate Sector Model) who are in the age bracket between 60 years and 65 years to join NPS system. Suitable amendments were made through “Pension Fund Regulatory and Development Authority (Exits and Withdrawals under the National Pension System) (Second Amendment) Regulations, 2017 and the same has been notified on 06.10.2017.

Relaxation 3. Exit in case of disability and in capacitation of the subscriber: With an objective of facilitating easy exit & withdrawal in case of disability and in capacitation of the subscriber covered under NPS, PFRDA has made suitable amendments through “Pension Fund Regulatory and Development Authority (Exits and Withdrawals under the National Pension System) (Third Amendment) Regulations, 2018 and the same has been notified on 02.02.2018.


New Rates for Small Savings Schemes

The Gov also revised Rates of Interest on various Small Savings Schemes Including Saving Deposits, Public Provident Fund, Kisan Vikas Patra and Sukanya Samriddhi Accounts Scheme for the 4th Quarter of financial year 2017-18 is as below:

Instrument Rate of interest w.e.f. 01.01.2018 to 31.03.2018
Savings Deposit 4.0
1 Year Time Deposit 6.6
2 Year Time Deposit 6.7
3 Year Time Deposit 6.9
5 Year Time Deposit 7.4
5 Year Recurring Deposit 6.9
5 Year Senior Citizen Savings Scheme 8.3
5 Year Monthly Income Account 7.3
5 Year National Savings Certificate 7.6
Public Provident Fund Scheme 7.6
Kisan Vikas Patra 7.3 (will mature in 118 months)
Sukanya Samriddhi Account Scheme 8.1

Sources: Pib.nic.in


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