The Hush Post: Statistics suggest that the elderly will constitute nearly a quarter of India’s population by 2050. Since they are expected to constitute such a huge chunk of the population there is a high need for a publicly-funded, universal scheme that will overcome destitution among the aged.
But the sad part is that, as compared to several other third world economies, India’s social security system is deplorably inadequate. However some states in India, including Kerala, West Bengal and Tamil Nadu, have considerably comprehensive social security schemes but the scale of the benefits is modest.
In India, Pension Fund Regulatory and Development Authority (PFRDA) is the pension regulator since 2003. As of now, the PFRDA is regulating and administering the National Pension System (NPS) along with the Atal Pension Yojana (APY), which offers pension scheme for the unorganized sector, guaranteed by the Government of India.
Take a look at the Part I of this government-run scheme
National Pension Scheme
The National Pension Scheme is a quasi-EET, debt taken on that has some traits of equity, instrument where 40% of the corpus escapes tax at maturity, while 60% of the corpus is taxable.
All the Indian citizens are eligible for a pension account under National Pension Scheme through eNPS.
Aadhaar is mandatory for opening an NPS account. The KYC for NPS is done using Aadhaar through One Time Password (OTP) authentication using your mobile number registered with Aadhaar. All the demographic details and photo are fetched from Aadhaar database.
Follow the below mentioned steps to register yourself under the scheme
- Visit the official website of NPS website – ttps://enps.nsdl.com/eNPS/NationalPensionSystem.html# and click on the Register tab
- Click on ‘Online Subscriber Registration’ option. Fill in all the details and click on the Generate OTP tab.
- An OPT will be sent to your mobile number, enter that.
- Upload your scanned signature and photograph
- After you upload the form, you will be routed to a payment gateway for the initial contribution to your NPS account. The minimum amount is Rs 500, which you can pay either by debit/credit card or Internet banking.
- A Permanent Retirement Account Number (PRAN) will be allotted to you. After which within a few days, you will receive a welcome kit from the PFRDA which will have a PRAN card, IPIN, TPIN and scheme details.
Take a print of the online form you have filled, affix your photograph on it and sign in the space given for the signature. This form should then be sent to the Central Recordkeeping Agency.