New NPS Account Rules: Removal of Credit Card Deposits in Level II Account

The Pension Funds Regulation and Development Authority (PFRDA) recently made a major change to the rules of the National Pension System (NPS). Now, pension fund regulator PFRDA has decided to stop the credit card contribution payment facility, bringing major changes to the NPS Tier-II account. The PFRDA gave this information in a broadcast on August 3.

After this PFRDA decision, the credit card payment facility for the NPS Tier-I account will continue, while for the Tier-II account, payment by credit card will no longer be possible. It should be noted that previously the contribution could also be made by credit card in a level II account as well.

What is an NPS Tier-II Account

There are two types of accounts in the NPS schema. It consists of Tier I and Tier II accounts. Tier-I is the main account, which is important for retirement and tax benefits. The NPS Tier-II account is voluntary. This is purely an investment account. Tier II accounts offer no tax-exempt benefits, but are a great savings option. The NPS Tier-II account is a liquid account. Through this, you can choose the equity, government or corporate investment plan.

Money can be withdrawn from the NPS Tier-II account at any time

You can invest and withdraw money at any time from an NPS Tier-II account. Even you can deposit and withdraw money there within a day. There is no minimum investment limit like Tier-I.

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