Maharashtra Gramin Bank NPS

What Is Maharashtra Gramin Bank NPS?

The National Pension Scheme, which requires defined contributions to be made by subscribers at periodic intervals during their working years, is aiming at accumulating a market-linked retirement corpus. Maharashtra Gramin Bank is an authorised Point of Presence (PoP) that allows NPS to be enrolled and serviced. The accumulated corpus will increase over time depending on the extent of contributions, asset allocation, and market performance, and a part of the corpus can be withdrawn in a lump sum on exit value. The rest is invested in the form of an annuity to provide post-retirement income.

The National Pension Scheme is regulated by the Pension Fund Regulatory and Development Authority (PFRDA). Launched in 2004 for Central Government employees and extended to all citizens in 2009 under the All Citizen Model, NPS is open to resident Indians, Non-Resident Indians (NRIs), and Overseas Citizens of India (OCIs) aged between 18 and 70 years at the time of entry. Subscribers can continue in NPS up to the age of 85 years, as per revised PFRDA norms.

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

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₹0

Your Monthly Pension

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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

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Types of Maharashtra Gramin Bank NPS Accounts

Every NPS customer is assigned a special Permanent Retirement Account Number (PRAN). There are two kinds of accounts under the same PRAN, including Tier I and Tier II.

• Tier I Account

  This is the major retirement account of NPS. Money deposited in this account is locked until retirement, except for the partial withdrawals allowed. Under the Income Tax Act, tax advantages can only be gained on investments in Tier I.

• Tier II Account

  Tier II is an optional and highly liquid investment account. Subscribers can withdraw funds at any time without exit restrictions. However, an active Tier I account is mandatory to open a Tier II account, and investments in Tier II do not qualify for tax benefits.

Operational Requirements

Features of Karnataka Grameena Bank NPS

NPS is available to the customers of Karnataka Grameena Bank regarding the provisions of PFRDA as follows:

• Portability Across Employment and Location: NPS accounts can be moved across employment, sectors and locations without a new account being needed.
• Multiple Contribution and Service Channels: Subscribers can make contributions and service requests through Karnataka Grameena Bank branches or authorised digital platforms, as permitted under NPS guidelines.
• Partial Withdrawal Facility: Partial withdrawals of up to 25% of the subscriber's own contributions are permitted after three years, for specified purposes, subject to limits on frequency.
• Centralised Grievance Redressal: Complaints are handled through the Central Grievance Management System (CGMS), with a resolution timeline of up to 30 days.
• Choice of Pension Fund and Investment Pattern: Subscribers can choose both their Pension Fund Manager and investment option:
  • Active Choice: Equity up to 75% (up to age 50, tapering thereafter), Corporate Bonds up to 100%, Government Securities up to 100%, and Alternate Assets up to 5%.
  • Auto Choice (Life Cycle Funds): LC25 (Conservative), LC50 (Moderate - default), and LC75 (Aggressive).

Applicable Charges Under Maharashtra Gramin Bank NPS

As a registered Point of Presence, Maharashtra Gramin Bank levies service charges as per PFRDA guidelines:

Note: The above charges relate only to services provided by Maharashtra Gramin Bank. Other NPS-related charges prescribed by PFRDA apply separately.

Documents Required to Open a Maharashtra Gramin Bank NPS Account

Applicants must submit a duly filled Subscriber Registration Form (online or physical) along with the required KYC documents:

• Recent passport-sized photograph
• PAN card
• Proof of address
• Proof of bank account (savings account for residents; NRE/NRO account for NRIs and OCIs)
• Identity proof: Indian passport (for NRIs) or OCI card (for OCIs)

How to Open a Maharashtra Gramin Bank NPS Account?

Subscribers can open an NPS account through Maharashtra Gramin Bank via online or offline modes.

Online Process

The online method allows subscribers to complete NPS registration digitally with minimal paperwork.

• Access the registration portal: Log in to the authorised NPS registration portal with Maharashtra Gramin Bank selected as the Point of Presence (PoP).
• Start new registration: Select the National Pension Scheme option and choose "New Registration."
• Complete KYC verification: Enter PAN details and complete PAN-based KYC authentication.
• Provide account information: Fill in personal details, nominee details, and bank account information.
• Make initial contribution: Pay the required minimum contribution online.
• PRAN generation: The Permanent Retirement Account Number (PRAN) is generated upon successful submission.

Offline Process

The offline method enables subscribers to open an NPS account by visiting a bank branch.

• Visit a bank branch: Approach the nearest Maharashtra Gramin Bank branch.
• Fill the application form: Collect and complete the Subscriber Registration Form (CSRF/NRSF).
• Submit documents: Provide KYC documents along with recent photographs.
• Select investment preferences: Choose the pension fund manager and investment option.
• Make initial contribution: Deposit the contribution via cash, cheque, or account transfer.
• PRAN issuance: PRAN is issued after document verification and processing.

Withdrawal Rules for Maharashtra Gramin Bank NPS Account

Withdrawal norms are governed by PFRDA regulations and depend on the subscriber category and exit timing.

Partial Withdrawal (Tier I - All Subscribers)

• Permitted after 3 years from account opening
• Limited to 25% of subscribers' own contributions
• Allowed for specified purposes such as education, marriage, house purchase or construction, medical treatment, or loan repayment
• Maximum three withdrawals during the entire subscription period

Exit Before Age 60

Government Subscribers

• The accumulated pension corpus may be withdrawn as a lump sum up to 20% of the total value.
• A minimum of 80% of the corpus must be mandatorily utilised for the purchase of an annuity.
• If the total accumulated pension wealth is ₹5 lakh or less, the subscriber is allowed to withdraw the entire amount as a lump sum.

Non-Government Subscribers

• Non-government subscribers may withdraw up to 20% of the accumulated pension corpus in lump-sum form.
• The remaining 80% of the pension wealth must be allocated towards annuity purchase.
• Where the total pension corpus does not exceed ₹5 lakh, full lump-sum withdrawal is permitted.

Exit at Age 60 or Superannuation

Government Subscribers

• A portion of the accumulated pension corpus can be withdrawn as a lump sum during retirement or superannuation, as per the rules applicable.
• At least 40% of the pension wealth must be used to purchase an annuity.
• If the total corpus is ₹8 lakh or below, a 100% lump-sum withdrawal is allowed.
• For corpus amounts between ₹8 lakh and ₹12 lakh, structured withdrawal options may be availed as per applicable NPS norms.

Non-Government Subscribers

• Non-government subscribers may withdraw up to 80% of the total accumulated pension corpus as a lump sum.
• A minimum of 20% must be utilised for annuity purchase.
• If the total pension corpus is ₹8 lakh or less, full withdrawal is permitted.
• For corpus amounts exceeding ₹12 lakh, the 80:20 lump-sum and annuity structure becomes mandatory.

Joining NPS at or After Age 60 (Non-Government)

• Subscribers joining NPS at or after the age of 60 may withdraw up to 80% of the accumulated corpus on exit.
• The remaining 20% of the pension wealth must be utilised for purchasing an annuity.
• If the total accumulated corpus is ₹12 lakh or below, a complete lump-sum withdrawal is allowed.

On the Subscriber's Death

Government and Non-Government Subscribers

• In the event of the subscriber's death, the entire accumulated pension corpus is payable to the nominee or legal heir.
• There is no mandatory requirement to purchase an annuity in such cases.
• Nominees may choose between lump-sum or structured payout options in accordance with PFRDA regulations.

Tax Implications on Maharashtra Gramin Bank NPS

Contributions made by NPS to subscribers are tax-deductible under relevant income tax regulations:

Note: Annuity income is taxable as per applicable income tax slabs. Withdrawal taxation follows prevailingIncome Tax Act.

Key Takeaways

The Maharashtra Gramin Bank NPS is a government-supported retirement plan controlled by PFRDA. It is accessible to resident Indians and NRIs between the ages of 18 and 70 and is based on a defined contribution market-linked basis. Subscribers receive a mandatory Tier I account that comes with tax benefits and an optional Tier II account that offers liquidity. NPS can be used as a structured retirement planning vehicle with controlled withdrawals and annuity-based pension earnings, and the potential to build wealth over the long term. The Maharashtra Gramin Bank NPS Calculator also allows investors to estimate the amount of money they will have during retirement and the amount of pension they will get.