The Pension Fund Regulatory and Development Authority (PFRDA) is planning to implement the second level of the New Pension Scheme (NPS) by December despite the first level attracting only 843 applications since its launch 45 days ago.
Unlike Tier-I, where subscribers have to stay invested till they are 60 to withdraw their money, Tier-II would allow daily withdrawals, said sources associated with its planning. The authority discussed the broad contours of the scheme, to be called NPS Savings Account, earlier this week.
Like Tier-I, NPS Savings Account will allow investors to choose their investment mix. The fund managers will remain the same — State Bank of India, UTI, ICICI Bank, IDFC, Reliance Capital and Kotak Mahindra. Withdrawals will be based on the daily net asset value. However, only those who have opted for Tier-I will be able to subscribe to the second level of the scheme.
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