NPS (National Pension System): PRAN, Tier I/II, Withdrawal, Exit
Independent guide. We are not part of PFRDA, NPS Trust or any CRA, and we never ask for your PRAN password, Aadhaar, bank details or OTP.
NPS means National Pension System. It is a defined-contribution pension scheme regulated by PFRDA. You save in a market-linked account identified by a 12-digit PRAN. At exit, citizens can take up to 80% as a lump sum. At least 20% buys a pension (annuity). Returns are not guaranteed.
- Full form
- National Pension System
- Regulator
- PFRDA, under the PFRDA Act, 2013
- Who can join
- Indian citizens (resident or NRI) and OCIs, aged 18 to 85
- Account number
- PRAN, 12 digits, same for life
- Minimum (Tier I)
- ₹500 to open; ₹500 per contribution; ₹1,000 a financial year
- Maximum
- No upper limit
- Normal exit (citizens)
- At 60, or after 15 years, whichever is earlier: up to 80% lump sum
- Helpline
- 1800 110 708 (toll-free, listed by PFRDA)
How NPS works
NPS is "unbundled": different regulated entities handle each job, so you can choose and change them.
- PoP (Point of Presence): banks and other registered entities that open accounts, take contributions and handle requests.
- CRA: keeps your records. Three are registered: Protean eGov Technologies, KFin Technologies and CAMS.
- Pension funds: 10 are registered. You pick one and can change it once a year.
- NPS Trust: set up by PFRDA to safeguard subscribers' assets.
- Annuity service providers: empanelled insurers that pay your pension after exit.
PRAN: your NPS account number
PRAN means Permanent Retirement Account Number. The CRA allots this 12-digit number when your account opens. It stays the same if you change job, sector or city. Quote it on cheques, contribution slips and complaints. You can contribute as soon as the PRAN is allotted, even before any card arrives.
Sample only: 1100 2233 4455. Never share your PRAN login password or OTP.
Tier I vs Tier II
| Feature | Tier I (pension account) | Tier II (optional investment account) |
|---|---|---|
| Who can open | Any eligible subscriber; it is the default account | Only if you have an active Tier I. NRIs and OCIs cannot activate it |
| Purpose | Retirement savings | Flexible investing |
| Withdrawals | Only as the exit rules allow (below) | Any time, no restriction |
| Minimum to open | ₹500 | ₹1,000 |
| Minimum later | ₹500 per contribution, ₹1,000 a financial year | ₹250 per contribution; no minimum balance |
| Tax benefit | Yes (see Tax) | No, per PFRDA |
| Pension fund and choice | Your choice | Can differ from Tier I |
Miss the Tier I yearly minimum and the account is "frozen", not closed. It becomes active again when you contribute.
Who can join: citizens vs government employees
- Eligible: Indian citizens, resident or non-resident, and OCIs, aged 18 to 85, who complete KYC.
- Not eligible: HUFs and Persons of Indian Origin. The account is individual only; nobody can open one on your behalf.
- Voluntary: you decide how much and how often, above the minimums.
- Employers can also offer NPS to staff (Corporate model).
- Exit: normal exit at 60 or after 15 years, whichever is earlier; up to 80% lump sum.
- Mandatory for Central Government employees who joined on or after 1 January 2004; adopted by most State Governments.
- Contributions (Central Government): 10% of basic pay + DA from you, 14% from the government.
- Exit: on superannuation, up to 60% lump sum and at least 40% annuity. Small corpus: ₹8 lakh or less can be taken fully; ₹8–12 lakh allows up to ₹6 lakh lump sum and the rest as SUR (at least 6 years) or annuity.
- UPS: since 1 April 2025 Central Government employees under NPS can opt for the Unified Pension Scheme, which gives an assured payout.
- Your office (nodal office) uploads contributions; raise service issues with it first.
How to open an NPS account
- Where: the eNPS platform of NPS Trust (for example enps.nsdl.com), or a PoP's own website or app.
- With Aadhaar: enter your Aadhaar number and the OTP sent to your Aadhaar-linked mobile. Your name, address and photo fill in automatically.
- With PAN: your name is checked against PAN records, and your bank (it must be on the eNPS list, with net banking) verifies your KYC.
- Finish: upload a signature (and photo on the PAN route), pay the first contribution, and your PRAN is generated, with an SMS and email.
- Where: any PoP registered with PFRDA, which includes many banks. See the list on pfrda.org.in.
- Form: Subscriber Registration Form (residents) or the NRI form.
- Residents bring: a recent photograph, PAN card and proof of address.
- NRIs bring: photograph, PAN, Indian passport, Indian address proof and NRE/NRO bank proof. OCIs bring the OCI card and foreign address proof instead of passport and Indian address.
- Pay the first contribution by cash or cheque. The PoP verifies KYC and uploads your form.
Contributing
- Offline: cash or cheque at any PoP with the contribution slip.
- Online: your PoP's website, eNPS, or the NPS mobile app.
- D-Remit: create a virtual ID linked to your PRAN and pay by UPI or QR code.
- No upper limit on Tier I or Tier II, and no limit on how many times you pay.
Investment choice: Active vs Auto
Your pension fund invests in three asset classes: equity, corporate bonds and government securities.
| Option | How it works | Equity share |
|---|---|---|
| Active choice | You set the percentages yourself | Up to 75%; bonds or government securities up to 100% |
| Auto – LC25 (Low) | Life-cycle fund: mix shifts to safety with age | 25% up to age 35, falling to 5% at 55+ |
| Auto – LC50 (Moderate) | Life-cycle fund | 50% up to 35, falling to 10% at 55+ |
| Auto – LC75 (High) | Life-cycle fund | 75% up to 35, falling to 15% at 55+ |
| Auto – Aggressive | Life-cycle fund | 50% up to 45, falling to 35% at 55+ |
- Changes: pension fund once a year; asset allocation or choice four times a year.
- Multiple Scheme Framework (MSF): from 1 October 2025, non-government subscribers can also invest in pension funds' own schemes (some up to 100% equity) under one or more PRANs linked to their PAN. Each has a 15-year lock-in (you may move to the common schemes meanwhile) and charges capped at 0.30% a year.
Partial withdrawal from Tier I
Rules from PFRDA's exit regulations as amended on 16 December 2025 (PFRDA FAQ updated March 2026). They apply to citizens and government subscribers.
- When: after 3 years from joining.
- How much: up to 25% of your own contributions, not returns or employer money. Later withdrawals: 25% of what you added since the last one, plus any unused limit.
- How often: before 60, up to 4 times, at least 4 years apart. After 60, any number of times till 85, at least 3 years apart.
- Only for: children's higher education or marriage; buying or building your first house (once only); medical treatment or hospitalisation of you, your spouse, children or parents; your disability; or repaying a loan taken against your NPS lien.
Exit rules (All Citizen model)
Normal exit means at 60 or after 15 years of subscription, whichever is earlier. Before that is premature exit. There is no minimum lock-in for premature exit since 16 December 2025.
| Situation | Corpus | What you can take |
|---|---|---|
| Normal exit | Up to ₹8 lakh | 100% lump sum, or SLW / SUR, or the 80/20 split |
| ₹8–12 lakh | Up to ₹6 lakh lump sum, rest as SUR for at least 6 years or annuity; or the 80/20 split | |
| Above ₹12 lakh | Up to 80% lump sum, at least 20% annuity | |
| Premature exit | Up to ₹5 lakh | 100% lump sum, or SLW / SUR, or 20/80 |
| Above ₹5 lakh | Up to 20% lump sum, at least 80% annuity | |
| Joined after 60 | Up to ₹12 lakh / above | No vesting period. 100% lump sum (or SLW / SUR) up to ₹12 lakh; above that up to 80% lump sum |
| Death | Any | 100% to the nominee or legal heirs; they may also choose annuity, SLW or SUR |
- SLW / SUR: Systematic Lump sum Withdrawal and Systematic Unit Redemption let you take the lump sum in instalments instead of at once.
- Don't want to exit? You stay in automatically up to 85. You can also defer the lump sum or the annuity up to 85; the deferred part stays invested.
- Loan against NPS: a regulated lender may mark a lien of up to 25% of your own contributions. PFRDA says separate guidelines will follow.
- Government employees: up to 60% lump sum and at least 40% annuity at superannuation (see the tab above).
Tax
Tier I contributions, withdrawals and annuities get tax benefits; Tier II does not. The Income-tax Act, 2025 replaced the 1961 Act from 1 April 2026, so section numbers have changed. PFRDA's NPS Vatsalya page already cites the new Act (for example a deduction of up to ₹50,000 for a parent's contribution under section 124(4), old regime only). For your own account, check incometax.gov.in before you file.
NPS Vatsalya (for children)
- Launched on 18 September 2024. A parent or guardian opens and runs it for a child below 18 (including eligible NRIs and OCIs); the child gets their own PRAN.
- ₹250 to open and at least ₹250 a financial year; ₹10 for later payments; no maximum.
- After 3 years, up to 25% of contributions for education, specified illness or disability over 75%: twice before 18, twice more between 18 and 21.
- At 18 the child does fresh KYC and can continue to 21, move to regular NPS, or exit (all as lump sum below ₹8 lakh; otherwise up to 80%).
- Open at a PoP or on eNPS. Details: PFRDA – NPS Vatsalya.
UPS for Central Government employees
- The Unified Pension Scheme (UPS) is an option within NPS for Central Government employees, effective 1 April 2025.
- Assured payout of 50% of the average basic pay of the last 12 months, after 25 years' service; proportionate between 10 and 25 years; at least ₹10,000 a month after 10 years. Dearness relief is paid on it.
- Contributions: 10% from you, 10% matching plus about 8.5% to a pool from the government.
- New recruits choose within 30 days of joining. If you don't opt, you stay in NPS. A one-time, one-way switch back to NPS is allowed.
- Details: PFRDA – Unified Pension Scheme.
Problems and complaints
- Lodge it on PFRDA Pension Sahayak. Log in with your mobile number and OTP or your PRAN. It replaced the old CGMS on 22 June 2026 and accepts complaints in 22 Indian languages, typed or spoken. It goes to the PoP, CRA or other entity concerned.
- Escalate to NPS Trust on the same portal if it is unresolved in 30 days or you are unhappy with the reply.
- Appeal to the PFRDA Ombudsman if NPS Trust does not reply in 21 days or you are still unhappy.
- Then a revision application to PFRDA's Designated Member, and finally the Securities Appellate Tribunal.
Bank-side problems (for example a contribution debited but not credited) can also be raised with your bank; unresolved bank service complaints can go to the RBI Ombudsman.
Stay safe: NPS returns are market-linked and not guaranteed; be wary of anyone promising fixed returns. PFRDA, NPS Trust and CRAs never need your OTP or password. Contribute only through your PoP, eNPS, the official app or D-Remit. Report fraud on 1930 or cybercrime.gov.in.
History
Ministry of Finance notifies the contributory pension system.
NPS starts; mandatory for new Central Government employees.
The PFRDA Act gives NPS its statutory basis.
NPS Vatsalya for minors is launched.
Unified Pension Scheme takes effect for Central Government employees.
Multiple Scheme Framework opens for non-government subscribers.
Amended exit rules: 80% lump sum for citizens, entry and exit age up to 85, no lock-in for premature exit.
PFRDA Pension Sahayak replaces CGMS for complaints.
FAQs
What is the full form of NPS?
National Pension System, a pension scheme regulated by PFRDA.
What is the age limit to join NPS?
18 to 85 years for citizens and OCIs. Children below 18 can join NPS Vatsalya through a parent or guardian.
What is PRAN?
Permanent Retirement Account Number: your 12-digit NPS account number, which stays the same for life.
What is the minimum NPS contribution?
Tier I: ₹500 to open, ₹500 per contribution and ₹1,000 a financial year. Tier II: ₹1,000 to open and ₹250 per contribution. There is no maximum.
How much can I withdraw at 60?
In the All Citizen model, up to 80% as a lump sum, with at least 20% used to buy an annuity. With a corpus of ₹8 lakh or less you can take it all. Government employees can take up to 60%.
Can I exit NPS before 60?
Yes. There is no minimum lock-in now. You can take up to 20% as a lump sum and must annuitise at least 80%, unless the corpus is ₹5 lakh or less, when you can take it all.
Can I withdraw part of my NPS money?
After 3 years, up to 25% of your own contributions for specified needs such as children's education or marriage, a first house, or medical treatment. Up to 4 times before 60.
Can an NRI open NPS?
Yes, a Tier I account, with an NRE or NRO bank account. NRIs and OCIs cannot activate Tier II.
Where do I complain about NPS?
On PFRDA Pension Sahayak (pensionsahayak.pfrda.org.in). Escalate to NPS Trust after 30 days, then to the PFRDA Ombudsman.
Is NPS money guaranteed?
No. Returns depend on the markets and your investment choice. Only UPS gives Central Government employees an assured payout.
Official sources
- PFRDA – About NPS (architecture, CRAs, pension funds) (accessed 31 Oct 2026)
- PFRDA – NPS All Citizen Model (eligibility, tiers, documents, investment, MSF, exit) (accessed 31 Oct 2026)
- PIB – Key amendments in PFRDA (Exits and Withdrawals under the NPS) Regulations, 2015 (19 Dec 2025) (accessed 31 Oct 2026)
- PFRDA – FAQs: Exits and Withdrawals, All Citizen Model (updated March 2026) (accessed 31 Oct 2026)
- PFRDA – FAQs: Exits and Withdrawals, Central Government and CAB (updated March 2026) (accessed 31 Oct 2026)
- PFRDA – Exits and Withdrawals (Amendment) Regulations, 2026 (gazette 14 Jul 2026; notes the 16 Dec 2025 amendment) (accessed 31 Oct 2026)
- Protean CRA – FAQs on contribution (minimum amounts, PRAN) (accessed 31 Oct 2026)
- NPS Trust – FAQ on eNPS (Aadhaar and PAN routes) (accessed 31 Oct 2026)
- NPS Trust – NRI FAQ (12-digit PRAN) (accessed 31 Oct 2026)
- PFRDA – NPS Vatsalya (rules and tax under the Income-tax Act, 2025) (accessed 31 Oct 2026)
- PFRDA – Unified Pension Scheme (UPS) (accessed 31 Oct 2026)
- PFRDA – Grievance redressal mechanism (accessed 31 Oct 2026)
- PFRDA – Press release: PFRDA Pension Sahayak launched (22 Jun 2026) (accessed 31 Oct 2026)
- Income Tax Department – e-filing portal (accessed 31 Oct 2026)
- Ministry of Home Affairs – National Cybercrime Reporting Portal (accessed 31 Oct 2026)
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