RBL Bank National Pension Scheme (NPS)

What is the RBL Bank National Pension Scheme?

The RBL Bank National Pension Scheme (NPS) is a pension plan launched by the Indian government to encourage citizens to save and invest money for their retirement. You can make voluntary contributions to the scheme, and the contributions are invested in various instruments. You don't get any returns until you retire, and then you get a fixed pension through the corpus accumulated over the years. The withdrawal opportunities are limited for this scheme so that you can benefit from the reinvestment and compounding of returns.

NPS Calculator

Your Age

Years

18 Years 59 Years

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Monthly Investment

₹

₹500 ₹10L

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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%

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₹0

Your Monthly Pension

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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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Features of the RBL Bank National Pension Scheme (NPS)

The RBL Bank National Pension Scheme (NPS) is an ideal investment option that offers financial security during retirement. Here are some key features of the scheme.

• Transparency and Regulation: This scheme is regulated by PFRDA, the Pension Fund Regulatory and Development Authority, a government entity. You know where your funds are invested, and the fund managers communicate the investment performance frequently to maintain transparency.
• PAN-Based KYC for Existing Customers: If you already have an account with RBL Bank, and the details entered for NPS are exactly the same, you can complete the KYC process for NPS faster.
• Investment Through SIP Available: RBL Bank allows you to invest in the NPS scheme through a Systematic Investment Plan or SIP. You can contribute a fixed amount to the scheme each month.
• Market-Based Returns: Although the RBL Bank National Pension Scheme (NPS) is a government-backed product, the funds are invested in market instruments, and investors get market-linked returns. However, to increase the safety of the funds, the maximum investment in equity instruments is capped at 50%.

Types of RBL Bank NPS Accounts

The RBL Bank National Pension Scheme (NPS) is divided into two tiers. Let's examine the two types of accounts available and the differences in their purpose and operation.

• Tier 1 Account: This is a retirement account with limited withdrawal opportunities. Additionally, you need to make a minimum contribution of Rs. 6,000 every year to this account, excluding charges and taxes.
• Tier 2 Account: This is an optional account with no withdrawal restrictions. However, you need to maintain a minimum balance of Rs. 2,000 at the end of the financial year.

Who is Eligible for the RBL Bank National Pension Scheme?

To find out if you qualify to invest in the RBL Bank National Pension Scheme (NPS), review the eligibility requirements set forth by the bank.

• Every Indian citizen may invest in NPS regardless of whether they are resident or non-resident.
• The scheme is open to citizens who are between the ages of 18 and 70.
• Subscribers must comply with KYC requirements to be eligible for the scheme.
• Opening a Tier 1 or Tier 2 account under this scheme requires a minimum initial contribution of Rs. 500. 

Charges Levied By the RBL Bank on NPS Accounts

The RBL Bank collects charges and penalties from your NPS account contributions for the services that it provides. Here is a summary of the charges levied by the bank.

Tax Benefits under the RBL Bank National Pension Scheme

NPS subscribers can claim certain income tax deductions on the amounts contributed to their Tier 1 NPS account over the course of a financial year. The tax deductions are explained here.

Note: For the calculation of NPS-based deductions, 'Salary' means a sum of basic salary and dearness allowance.

How to Invest in the RBL Bank National Pension Scheme? Step-by-step Guide

RBL Bank allows you to invest in the RBL Bank National Pension Scheme (NPS) through a quick and easy paperless process. Here are the steps that you need to follow.

• Visit the official website of RBL Bank.
• Go to the 'Products' section and select 'Investments'.
• Find 'National Pension System' from the various investment options displayed.
• Click on the 'Start Investing' button to get redirected to the Protean eGov website.
• Complete the online application form by entering your personal details, nominee details, and bank account details.
• Upload the scanned copies of required documents like PAN, signature, cancelled cheque, etc.
• Authenticate the form by providing a one-time password.

If you prefer to subscribe to the scheme offline, you can submit an application physically at an RBL Bank branch near you.

Conclusion

It's never too soon to start your retirement planning. Subscribing to the RBL Bank National Pension Scheme (NPS) can help you build the habit of saving consistently for your retirement. With the low bank charges and minimal compulsory contributions, you can start small and accumulate a significant corpus gradually.