Bank of Maharashtra National Pension Scheme (NPS)

Features of the Bank of Maharashtra National Pension Scheme

• Regulated by PFRDA: The scheme is governed by the Pension Fund Regulatory and Development Authority (PFRDA), ensuring your investments are well-regulated and secure.
• Low-Cost Structure: NPS is known for its cost-effectiveness. The fund management charges are extremely low, just 0.01%, making it one of the most affordable long-term investment options.
• Flexible Contribution Method: Subscribers can contribute any amount above the minimum at any time of the year. There’s no fixed frequency, offering complete flexibility.
• Choice of Pension Fund Manager (PFM): You can choose from several authorised PFMs based on their past performance, investment style, and risk profile.
• Asset Allocation Options: The NPS allows you to decide how your money is invested across equity, government securities, and corporate debt, giving you more control over risk and returns.
• Attractive Rate of Return: Unlike fixed-return products, NPS returns are market-linked and have historically delivered returns in the range of 8%–10%, depending on asset mix and market performance.
• Easy Online Management: Once registered, you can manage your account digitally, view balances, track performance, switch fund managers, or update personal details without visiting the bank.
• Flexible Exit & Withdrawal Options: You can exit the scheme upon maturity (at age 60) or continue till 70. At maturity, up to 60% of the corpus can be withdrawn tax-free, and the rest is used to purchase an annuity for regular income.

NPS Calculator

Your Age

Years

18 Years 59 Years

Enter Your Age

Monthly Investment

₹

₹500 ₹10L

Enter Investment Per Month

Expected Return on Investment

%

5% 15%

Expected Return on Investment

Percentage of Corpus Allocated for Pension

%

40% 100%

Enter Corpus Percentage

Expected Return from Pension

%

5% 15%

Enter Annuity Return

₹0

Your Monthly Pension

View Plans

₹0

Your Monthly Pension

View Plans Your Pension Calculation

Your Pension Calculation

Total Investment

Returns Earned

Maturity Amount

Maturity Amount split (Lumpsum & Pension)

60%

Lumpsum Amount

At the age of 60 Yrs

40%

Pension Wealth

At the age of 60 Yrs

View Plans

Eligibility for the Bank of Maharashtra National Pension Scheme

To be eligible for the Bank of Maharashtra NPS scheme, an individual must:

• Be a citizen of India
• Be aged between 18 and 70 years
• Comply with KYC norms during registration
• Be either salaried or self-employed

How to Invest in the Bank of Maharashtra National Pension System

Follow these steps to open an NPS account with Bank of Maharashtra:

• Visit the nearest Bank of Maharashtra branch or log in to the official portal
• Fill out the registration form and complete KYC formalities
• Choose your account type (Tier I or Tier II) and select your pension fund manager
• Submit initial contribution (₹500 for Tier I or ₹1,000 for Tier II)
• Receive your Permanent Retirement Account Number (PRAN)

  You can also manage your account and contribute online through the eNPS platform.

Tax Benefits Under the Maharashtra National Pension System

Understanding the tax deductions under the Income Tax Act can help you maximise your NPS savings. The key sections applicable to NPS contributions are:

1. Section 80CCD(1): Employee’s Contribution

   You can claim up to 10% of your salary (Basic + DA), or up to 20% of gross income if self-employed. This benefit is part of the overall ₹1.5 lakh deduction cap under Section 80CCD(1).

   Note: If you’ve already used this limit through other instruments like PPF or ELSS, you must adjust those contributions to claim this benefit.

2. Section 80CCD(1B): Additional Benefit

   An exclusive deduction of up to ₹50,000 is available to all NPS subscribers. This is over and above the ₹1.5 lakh limit under Section 80CCD(1). It allows you to expand your tax-saving limit to ₹2 lakh annually.

3. Section 80CCD(2): Employer’s Contribution

   If your employer contributes to your NPS account, you can claim:

   • Up to 10% of your salary (Basic + DA) under the old regime
   • Up to 14% of salary under the new regime (for government employees)

   This deduction is separate from the ₹1.5 lakh and ₹2 lakh limits, making it a valuable additional tax-saving channel for salaried individuals.

   Note: If your employer contributes under the new tax regime, the deduction limit increases to 14% of salary (Basic + DA), allowing you to claim even higher tax benefits.

Conclusion

The Bank of Maharashtra NPS provides a secure, flexible, and low-cost way to build your retirement corpus. With tax advantages, digital access, expert fund management, and customisable options, it suits both salaried and self-employed individuals aiming for a financially stable future. Whether starting early or planning late, this government-regulated pension scheme is a smart step toward retirement readiness.