Understanding Tier I and Tier II NPS Accounts

Kfintech13 Jun, 2023Finance

India?s National Pension System is synonymous with retirement planning and investing. Earlier, NPS was open to only central government employees, but in 2009, it was opened to all citizens of India including private sector employees. Run by the Pension Fund Regulatory and Development Authority (PFRDA), under the jurisdiction of the Ministry of Finance, NPS enables Indian citizens to contribute towards their pension fund, to be withdrawn when their account matures or under other specific circumstances. Accounts in NPS To learn more about how NPS works, read this blog. The National Pension Scheme provides its subscribers with two types of accounts primarily referred to as Tier I account and Tier II account. It is mandatory for subscribers to join NPS through a Tier I account, whereas opening a Tier II account is optional and can be done at any time, whether it be at the time of opening the Tier I account or later.