South Indian Bank NPS

The National Pension System (NPS) is a government-backed retirement savings scheme designed to help individuals build a secure financial future. South Indian Bank, authorized by the Pension Fund Regulatory and Development Authority (PFRDA), serves as a Point of Presence (PoP) for NPS, facilitating account opening and management for its customers.

Eligibility Criteria

To open an NPS account with South Indian Bank, you must:

• Be an Indian citizen (resident or non-resident) or an Overseas Citizen of India (OCI).
• Be between 18 and 70 years of age at the time of application.
• Comply with the bank’s Know Your Customer (KYC) norms.

Key Features

• Account Types:
  • Tier I: Mandatory retirement account with tax benefits.
  • Tier II: Optional savings account offering flexibility in withdrawals.
• Investment Choices:
  • Active Choice: Allocate investments across equity (E), corporate bonds (C), and government securities (G) as per your preference.
  • Auto Choice: Investments are automatically allocated based on your age.
• Tax Benefits:
  • Deductions up to ₹1.5 lakh under Section 80CCD(1).
  • Additional deduction of ₹50,000 under Section 80CCD(1B).
• Withdrawal Rules:
  • At retirement (age 60), withdraw up to 60% of the corpus tax-free; the remaining 40% must be used to purchase an annuity.
  • Premature exit before 60 years requires 80% of the corpus to be used for annuity purchase.
  • Partial withdrawals up to 25% are allowed after 3 years for specific purposes like medical emergencies or higher education.

How to Open an NPS Account with South Indian Bank

Offline Method:

1. Visit a designated South Indian Bank branch authorized for NPS services.
2. Fill out the NPS registration form and submit necessary documents (proof of identity, address, age, and photographs).
3. Make the initial contribution (minimum ₹500 for Tier I and ₹1,000 for Tier II) along with applicable charges.
4. Upon verification, your NPS account will be activated.

Online Method:

1. Visit the South Indian Bank NPS portal.
2. Click on ‘Click here for Online NPS Registration’.
3. Complete the registration by providing required details and uploading scanned documents.
4. Make the initial contribution and pay registration charges online.
5. Your NPS account will be opened after successful verification.

Required Documents

• Proof of Identity: PAN card, Aadhaar card, passport, etc.
• Proof of Address: Utility bills, bank passbook, property tax receipt, etc.
• Photographs: Recent passport-sized photos.
• For Online Registration: Valid email ID, mobile number, and an active bank account.

By enrolling in the NPS through South Indian Bank, you can take a significant step toward securing your financial future with a structured and flexible retirement plan.