All it took for inspiration to develop a painless injection was a mosquito bite. Yes, a mosquito uses a unique method to deliver a painless bite and researchers at IIT Kharagpur wondered if they could make an injection that mimicked the mechanical action involved. While most of us think that a mosquito bite hurts, in reality, the irritation is due to chemicals in its saliva. After three years of research, IIT-Kgp, along with the Tokai University of Japan, has invented this novel injection that uses a microneedle to extract blood or deliver drug painlessly by using the same suction-based pressure that a female mosquito uses to suck blood. The diameter of the needle is just 30 micro metre. Besides others, this injection will especially benefit diabetes mellitus patients as blood tests are critical for its diagnosis and management. These patients have to check their blood gl...
What is National Pension Scheme (NPS)?
National Pension System (NPS) is a pension cum investment scheme launched by Government of India to Citizens of India. It brings an attractive long term saving avenue to effectively plan your retirement through safe and market based return. The Scheme is regulated by Pension Fund Regulatory and Development Authority (PFRDA).National Pension System Trust (NPST) established by PFRDA is the registered owner of all assets under NPS.
Why to invest in National Pension Scheme (NPS)?
Attractive market linked returns. Easily portable. Professionally managed by experienced Pension Funds.
Who can join NPS?
Any individual citizen of India (both resident and Non-resident) in the age group of 18-65 years (as on the date of submission of NPS application) can join NPS.
Can an NRI join NPS?
Yes, an NRI can open an NPS account. Contributions made by NRI are subject to regulatory requirements as prescribed by RBI and FEMA from time to time.However, OCI (Overseas Citizens of India) and PIO (Person of Indian Origin) card holders and HUFs are not eligible for opening of NPS account.
Can I open multiple NPS accounts?
No, opening multiple NPS accounts for an individual is not allowed under NPS. However an Individual can have one account in NPS and another account in Atal Pension Yojna.
Can I open an NPS account jointly with my spouse, child, relative, etc.?
No, NPS account can be opened only in individual capacity and cannot be opened or operated jointly or for and on behalf of HUF
How NPS works?
- Upon successful enrolment, a Permanent Retirement Account Number (PRAN) is allotted to the subscriber under NPS.
- Once the PRAN is generated, an email alert as well as a SMS alert is sent to the registered email ID and mobile number of the subscriber by NSDL-CRA (Central Record Keeping Agency).
- Subscriber contributes periodically and regularly towards NPS during the working life to create the corpus for retirement.
- On retirement or exit from the scheme, the Corpus is made available to the Subscriber with the mandate that some portion of the Corpus must be invested in to Annuity to provide a monthly pension post retirement or exit from the scheme.
What is the return expected in National Pension Scheme (NPS)?
About National Pension Scheme (NPS)
| Criteria | Value |
|---|---|
| Interest | 8-10% (Expected) |
| Rate of Return (Appx) | 10% |
| Lock-in period | 60 (Years)(Till Retirement) |
| Account Holder | All |
| Account Opening Restriction | No Limits |
| Maximum Account Opening Age | None |
| Risk Percentage | 50% |
| Place of Purchase | PoP Point(it could be a bank too) / enps.nsdl.com |
| Tax On Return | Taxable |
| Investment Mode | One Time Investment / Installments |
| Loan Against | In the form of Withdrawal |
| Minimum Investment (PA) | ₹ 500 |
| Maximum Investment (PA) | No Limits |
| Tax Exemption (PA) | ₹ 2 lakhs |
| Premature Withdrawal | Investor can withdraw only 3 times during the tenure. Investor should maintain a minimum gap of 5 years between ant 2 withdrawals. This gap can be reduced only during medical emergencies. Investor can withdraw only 25% of his contributions towards this scheme. Investor should have been a member of this scheme for at least 10 years in order to be eligible for partial withdrawal. Partial withdrawal is allowed only in certain exceptional cases, like education of his/her children, marriage expenses, house construction or medical emergencies. |
Pros of National Pension Scheme (NPS):
- Reasonable market based returns over the long term.
- No Restriction towards the Frequency of Contributions.
- The Tier 1 account can be opened with a minimum investment of ₹ 500.
- Easy Documentation.
- All citizens of India, and also the NRIs, can invest in the scheme. It has a vast age span, which ranges from 18 years to 65 years.
Cons of National Pension Scheme (NPS):
- The subscriber cannot invest more than 50% of total investment in the NPS account, towards the equities.
- Complexity in choosing the fund and fund manager.
National Pension Scheme (NPS) Return
Monthly contribution towards NPS. 8% Interest.
Current Age: 30
Retirement Age: 60
Total Investment Period: 30
| NPS | ₹ 1000 | ₹ 2000 | ₹ 3000 | ₹ 4000 | ₹ 5000 |
|---|---|---|---|---|---|
| Invested Amount | 360000 | 720000 | 1080000 | 1440000 | 1800000 |
| Maturity Amount | 1124304 | 2248609 | 3372914 | 4497219 | 5621523 |
| Pension per month post retirement | 7916 | 15832 | 23748 | 31665 | 39581 |
| Lumpsum Withdrawn Amount | 296861 | 593722 | 890583 | 1187444 | 1484305 |
| NPS | ₹ 1000 | ₹ 3000 | ₹ 5000 |
|---|---|---|---|
| Invested Amount | 360000 | 1080000 | 1800000 |
| Maturity Amount | 1124304 | 3372914 | 5621523 |
| Pension (PA) | 7916 | 23748 | 39581 |
| Lumpsum Amount | 296861 | 890583 | 1484305 |
Conclusion
Now you have the understanding of National Pension Scheme (NPS). You can choose the best range of investment which will fit for you. You can leave the comments if you have any queries. Thank you so much for reading and have a great day.
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