FinMin says NSDL will create awareness about National Pension System

The Finance Ministry on Tuesday said NSDL e-Governance Infrastructure Ltd will undertake an exercise to create awareness among people about the National Pension System (NPS).

NSDL e-Governance Infrastructure Ltd acts as a Central Recordkeeping Agency for the NPS and issues unique Permanent Retirement Account Number (PRAN) to each subscriber.

"@NSDL eGovernance in association with DFS presents 'NPS Ki Paathshala' every Wednesday. Stay tuned! First video is coming up tomorrow," the Department of Financial Services (DFS) said in a tweet.

All central and state government employees recruited on or after January 1, 2004, are part of the NPS.

Under the NPS, individual contributions are pooled into a pension fund, which is invested by the government's Pension Fund Regulatory and Development Authority (PFRDA).

For non-government employees, there are other schemes, including Atal Pension Yojana (APY) primarily targeting those working in the unorganised sector.

There are over 2.2 crore subscribers under Atal Pension Yojana, launched in 2015.

The APY can be subscribed by any Indian citizen in the age group of 18-40 years having a bank account.

The scheme offers three distinctive benefits. It gives a minimum guaranteed pension ranging from Rs 1,000 to Rs 5,000 on attaining 60 years of age.

Secondly, the amount of pension is guaranteed for lifetime to the spouse on death of the subscriber and lastly, in the event of death of both the subscriber and the spouse, the entire pension corpus is paid to the nominee.