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National Pension Scheme SBI Online 2024 – NPS at SBI

Established in 1806, the State Bank of India is a multinational public-sector banking institution with its headquarters in Mumbai, Maharashtra. In terms of total assets, it is said to be the 48th largest bank in the whole world.  In this blog, we will walk you through a comprehensive guide on National Pension Scheme SBI, while highlighting all the associated details that you need to know. 

What Is the SBI National Pension Scheme?

National Pension Scheme SBI is a voluntary contribution pension system introduced by the Central Government of India. Its primary aim is to provide a safe and secure income facility after retirement. This scheme is completely administered and monitored by the PFRDA (Pension Fund Regulatory and Development Authority). Most people opt for NPS at SBI for its flexibility, portability and ultra-low management cost.

Eligibility Criteria for SBI National Pension Scheme

Have a glance at the following eligibility criteria set by the bank for National Pension Scheme SBI.

  1. The applicant must be an Indian citizen, be it a resident Indian or non-resident Indian. 
  2. The applicant’s age must fall between 18 to 70 years. 
  3. He/she must be under any pension scheme.

Features of SBI National Pension Scheme

Here are some of the significant features that the NPS account in SBI offers:

  1. SBI NPS comes with two different types, one is Tier I and the other is Tier II accounts.
  2. It is a low-cost pension scheme which comes with fund management charges ranging between 0.03% to 0.09%.
  3. You will get assured market-linked returns.
  4. SBI Bank offers flexibility of investments to their NPS account holders, enabling them to choose their PFM (Pension Fund Manager) at their convenience.
  5. Under this scheme, you can alter the PFM once a year.
  6. SBI Bank allows their NPS account holders to define their asset allocation four times a financial year.
  7. It is portable across jobs and cities/states.
  8. You will have 24*7 accessibility to your National Pension Scheme SBI through online modes including the net/mobile banking app. 
  9. Provision to contribute till 75 years or to defer withdrawal up to the age of 75 years.
  10. In case the total accumulated amount is less than ₹5 lakhs on attaining the age of 60, the individual may withdraw the entire amount.
  11. The existing amount under superannuation can be transferred one time to NPS without any tax Incidence.

Tax Benefits for the SBI National Pension Scheme

Here are the tax benefits you will get as an NPS account holder in SBI:

In the case of Tier I Account

Employee Contribution:

  • Tax deduction under Section 80CCD (1B) on the contribution of ₹50,000.
  • Tax deduction under Section 80CCE for investments (10% of Basic & DA) within the overall limit of ₹1,50,000.

Employer Contribution:

  • Tax deduction up to 10% of salary (Basic + DA) under Section 80CCD (2) subject to a monetary ceiling of ₹7.5 lakhs, including PF, Superannuation, etc.

In the case of Tier II Account

  • No tax benefit is available on investment in a Tier II account.

National Pension Scheme SBI can be opened via both online and offline modes. Read along to discover both ways:

Steps for Opening an NPS Account in SBI Online

  • Step 1: Go to the official internet banking portal of the State Bank of India. 
  • Step 2: Log in with your user ID and password.
  • Step 3: Surf through the home page and click on the ‘Payments & Transfers’ option.
  • Step 4: Click on the ‘NPS Contributions’ option.
  • Step 5: Add a beneficiary to contribute to your SBI NPS account.

That’s it! Your State Bank of India NPS account will be opened instantly.

Note: You must be an existing customer of SBI Bank to open NPS online.

Steps on Opening SBI NPS Offline

  • Step 1: Visit your nearest SBI branch.
  • Step 2: Collect the NPS registration form.
  • Step 3: After filling it up carefully, submit it along with your coloured passport-size photograph and KYC documents.
  • Step 4: Collect the NPS contribution Instruction slip (NCIS) and make the initial contribution.

That’s it!

Documents Required for SBI NPS Scheme

Keep all the below-listed documents ready before you open a National Pension Scheme SBI:

  1. CSRF-1 or Subscriber Registration Form (download it online or collect it from the bank)
  2. NCIS  or NPS Contribution Instruction Slip (download it online or collect it from the bank)
  3. Aadhaar Card
  4. PAN Card
  5. Passport Size Photograph (coloured)
  6. DOB Proof
  7. Address Proof
  8. Identity Proof
  9. Cancelled Cheque Leaf

Note: All the documents must be self-attested.

Things to Know About SBI Bank NPS

Below are some of the important things you must know before opening a NPS account in SBI:

  1. SBI bank offers four types of individual funds, one is Asset Class E and others are Asset Class C, Asset Class G, and Alternative Asset Class A.
  2. You will get two investment strategies to choose from, one is Active Choice and Auto Choice.
  3. You have to contribute an amount of ₹500 and ₹1,000 while opening a Tier I and Tier II NPS account in SBI bank respectively.
  4. You have to contribute an amount of ₹1,500 to open Tier I and Tier II accounts altogether.
  5. It is mandatory to be a Tier I account holder for activating your Tier II NPS account.
  6. The minimum required account balances are ₹6,000 and ₹2,000 for a Tier I and Tier II account respectively.

Final Word

State Bank of India carries a rich heritage and 200 years of legacy in this banking industry. Henceforth, the National Pension Scheme offered by SBI is the preferred choice for several individuals. By choosing National Pension Scheme SBI, you will get assured tax benefits and attractive returns. Now that you have a clear idea about the National Pension Scheme of SBI Bank, consider opening an account today and avail its benefits. 

FAQs

How many contributions can I make towards my SBI NPS account?

There is no fixed limitation to the number of contributions that can be made in an SBI NPS account annually. The account holder is free to manage the amounts and frequency of contributions.

How will I get my PRAN?

SBI bank will send you the PRAN via mail to your registered mail ID or SMS to your phone number.

Can I open more than one SBI NPS account?

No, you cannot open more than one NPS account. If needed, you can move your account across various jobs and states.

What is POP?

POP or Point of Presence is the first point of interaction for the NPS subscriber in the NPS architecture.

Can I make a partial withdrawal from a Tier I NPS account?

Yes, you can withdraw up to 25% of your contribution amount after the lock-in period of three years from a Tier I SBI NPS account.

Disclaimer

This article is solely for educational purposes. Stable Money doesn't take any responsibility for the information or claims made in the blog.

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Stable Money

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