Frequently Asked Questions

Concept

Can I Gift-a-Pension to anyone?

Yes. You can Gift-a-Pension to any Indian citizen aged between 18 and 60 years.

Can I ‘Gift a Pension’ to more than one person?

Yes. You may use the WhatsApp number (+9108023002000) to Gift-a-Pension to more than one person if you wish.

Can multiple people contribute to the same giftee’s NPS account?

Yes. Multiple people may contribute to a single giftee’s NPS account using the same WhatsApp number (+9108023002000).

How should I educate my giftee about saving for old age?

You may show them the educational videos on this website. You may also use the simple pension pension calculator on this website to explain how long-term savings work.

If I stop contributing to my giftee’s account, can they continue to save in NPS?

Yes. In fact, you should encourage your giftee to also save in NPS irrespective of whether you are actively contributing. You can also help set up their UPI ID to enable them to do so.

How is my giftee’s personal data protected?

Data protection and privacy is a critical part of the process. The data provided by you through the WhatsApp chat is securely encrypted at both ends and no unauthorized person is able to view or use this data. We deploy strong, up-to-date technology, processes and access controls that are periodically tested and audited by independent experts. We never share your giftee’s personal information with anyone without their permission. Please see our Privacy Policy for more information.

Process and Payments

What KYC documents does my giftee need?

Your giftee will need their Aadhaar number and mobile number linked to Aadhaar. Please refer requirement checklist under “How it Works” section on this website for more information.

Is e-Sign necessary?

Yes. It is mandatory and a compliance requirement for your giftee to e-Sign the NPS application using Aadhaar and the NPS account number (PRAN). This is a simple, OTP-based process and takes only a few seconds. If the application is not e-Signed, the NPS account will become inactive or frozen till the e-Sign is done.

How do I use UPI to make payment for NPS contribution?

Please see the “How to Pay” section on this website. Simply select the specific payment App that you are using to understand how the process works.

Please do not share your UPI PIN with anyone. Read more about UPI here.

What happens once I make a UPI payment into the NPS account?

The “UPI collect request” you get from HDFC Pension will be linked to your giftee’s NPS account number. Upon payment approval, the funds from your bank account will get directly credited to your giftee’s NPS account.

Once the transaction is successful you should instantly see a success status on the UPI app screen and also receive an SMS from your bank. Sometimes, the success message or SMS from your bank can take longer. In case you do not receive (the payment confirmation within) your confirmation for a Gift-a-Pension contribution within an hour, please contact our helpline at 080 2300 2000.

Your giftee would get an SMS from KCRA confirming that the contribution has been credited into their NPS account. All such contributions should also reflect in the their NPS account statement within a week.

How will I know when an NPS contribution is due?

You will receive an SMS reminder before the next NPS contribution becomes due. And you will get a UPI collect request from HDFC Pension.

What will happen to the NPS savings if my giftee or I miss some contributions?

There is no penalty for missing due contribution. The savings already in your giftee’s NPS account will remain securely invested by HDFC Pension and will continue to earn returns and grow.

NPS Features

What is NPS?

NPS or the National Pension System is a voluntary retirement saving scheme launched by the Government of India on 01 January 2004. For the first 5 years, only central and state governments employees were permitted to open NPS accounts.

Since 2009, any Indian citizen can open an NPS account and use it to save for old age. Around 70 lakh young government employees and over 65 lakh other people across India are already using the NPS to regularly save for their retirement.

NPS is regulated by the Pension Fund Regulatory and Development Authority or PFRDA. PFRDA helps keep retirement savings of citizens safe and protects subscribers from fraud or malpractice.

The NPS Trust takes care of savings under the NPS accounts in the best interest of subscribers.

Who can open an NPS account?

Any Indian citizen aged between 18 and 60 can voluntarily open an NPS account.

Are there minimum and maximum contribution limits for NPS?

₹1,000 per year is the minimum contribution limit for NPS. The minimum amount per contribution is ₹500. If you are unable to save a minimum of ₹1,000 in a year, then your account will be made inactive. To activate your account again, you need to make a minimum contribution of ₹1,000.

There is no maximum contribution; however, if the subscriber does not have a PAN, they cannot contribute more than ₹50,000 per year.

Is there any penalty if my giftee is unable to save for a few months?

No. There are no penalties or charges if a contribution is missed. Savings in the NPS account will remain invested and will continue to grow.

How are NPS funds invested?

NPS funds are managed by one of the 7 pension fund managers mentioned below. These expert fund managers have been appointed by PFRDA. HDFC Pension is the best performing pension fund manager in India and is our preferred option.

  1. Birla Sunlife Pension Management Limited
  2. HDFC Pension Management Company Limited
  3. ICICI Prudential Pension Funds Management Company Limited
  4. Kotak Mahindra Pension Fund Limited
  5. LIC Pension Fund Limited
  6. SBI Pension Funds Private Limited
  7. UTI Retirement Solutions Limited

There are 3 scheme/fund options available, that are differentiated by proportional distribution of funds in equity and debt instruments. LC25 - Conservative Life Cycle Fund is the default option.

  1. LC25 - Conservative Life Cycle Fund
  2. LC50 - Moderate Life Cycle Fund
  3. LC75 - Aggressive Life Cycle Fund

As the value of these investments go up, the value of NPS savings also grows over the years.

Moving of NPS savings from one scheme or fund to another is allowed twice a year.

Are returns under NPS guaranteed or fixed?

The returns on NPS savings are not fixed, and may go up or down over time depending on the market value of the investments.

What have been the historical returns on NPS savings?

The historical returns on NPS schemes for each fund manager can be found on the website of NPS Trust.

When can my giftee start getting a pension from NPS?

At 60 years, a maximum of 60% of the full savings in the NPS account can be withdrawn as a lump sum. The remaining must be used to purchase an annuity.

What is annuity?

Annuity is a periodic payment, either monthly, quarterly or annually, that is received by the subscriber after they turn 60 for life.

How much pension will my giftee get with NPS?

The value of the pension in NPS depends on: (a) the amount saved regularly over the years, (b) the age of the subscriber at which they started saving, and (c) the returns that these savings earn. Ideally, one should open an NPS account early and save regularly.

Please see the pension calculator on this website to understand more,

Can my giftee withdraw from NPS before age 60?

Yes, they can withdraw up to 25% of the contributions made into the NPS account 3 times before the age of 60. The first withdrawal can be made 3 years after opening an NPS account. The 2nd withdrawal can be made at least 5 years after the first and the 3rd withdrawal can be made atleast 5 years after the 2nd withdrawal.

For what purposes are withdrawals from NPS permitted?

Pre-retirement withdrawals from NPS are permitted for (a) children’s higher education, (b) children’s marriage expenses, (c) purchase or construction of a home, (d) expenses for critical illness for self, spouse, children or dependent parents, (e) medical or incidental expenses due to disability or incapacitation, (f) cost of skills development or re-skilling, and (g) for setting up own business.

Can my giftee close their NPS account before age 60?

Yes. An NPS account can be closed after 10 years from opening. At that point, if the total money in the NPS account is less than ₹2.5 lac, the full amount can withdraw as a lump sum. If the amount is more than ₹2.5 lac, only 25% of the money can be withdrawn as a lump sum. The remaining will be paid back as a monthly pension.

How will my giftee get the withdrawal or monthly pension?

All withdrawals and pension benefits from NPS are transferred directly into the bank account of the subscriber.

What happens if an NPS subscriber dies before retirement?

In this unfortunate situation, the subscriber’s nominee will be paid the full amount in the NPS account. This money will be directly transferred into the nominee’s bank account.

Who is a nominee?

A nominee is usually the spouse or children or legal heir of the person who has the NPS account. NPS subscribers have to provide their nominee’s details in the NPS Application Form. This is both important and mandatory.

What happens if both an NPS subscriber and the nominee die?

In this unfortunate situation, the accumulated wealth shall be paid to the family members on the basis of the legal heir certificate issued by relevant authorities.

What happens to the NPS account if my giftee moves to another city?

NPS accounts are portable. One can continue to put money in the same account regardless of where they live or work.

NPS Fees

NPS Fees and Charges

As per NPS rules, HDFC Pension charges a one-time fee of Rs.400 for NPS account activation and a transaction fee of Rs.30 per contribution. GST of 18% is charged separately on the fees.

Here is a chart on all fees and charges under NPS and the entities that charge these fees. Information on NPS fees and charges is also available on the websites of PFRDA, NPS Trust and HDFC Pension.

Intermediary Charge Head Charge Frequency of deduction Mode of deduction
POP (HDFC Pension) Subscriber Registration ₹400 One time at the time of registration From the contribution amount
Contribution Processing* 0.50% On each transaction
Non – Financial Transaction Processing ₹30
Persistency Charge ₹50/- per annum for annual contribution ₹1000 to ₹2999.

₹75/- per annum for annual contribution ₹3000 to ₹6000.

₹100/- per annum for annual contribution above ₹6000.
Applicable for Active Retail Customer with more than 6 months tenure with POP By cancelling the units.
Central Recordkeeping Agency (CRA)

(KFintech)
PRAN Generation ₹39.36 One time By cancelling the units on the last day of the calendar quarter
Annual Maintenance ₹57.63 Per annum
Financial Transaction Processing ₹3.36 On each transaction
Pension Fund Manager Investment Management 0.03%- 0.09% Per annum Through NAV deductions
Custodian Asset Servicing 0.0032%
NPS Trust Trust Management 0.005%

Have more questions? Please call our helpline 080 2300 2000 between 9:30 am and 6:30 pm on any day except Sundays and National Holidays.

Gift-a-Pension is a national initiative led by pinBox Inclusion - India's only social enterprise committed exclusively to pension and social security Inclusion for informal sector women and youth.

Contact: 080 2300 2000

Email: helpdesk@giftapension.com

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