The Government of India notified the Contributory Pension Scheme on December 22, 2003, now known as the National Pension System (NPS), effective from January 1, 2004.
The SBI Contributory Pension Scheme is regulated and administered by the Pension Fund Regulatory and Development Authority. The PFRDA Act was passed on September 19, 2013, and was notified on February 1, 2014.
This scheme allows guardians to open accounts in the names of minor citizens. Here’s a step-by-step guideline on how to enroll, open account, and more:
Who Can Enroll?
This pension scheme is available to all the minor citizens whose age is less than 18 years. The account will be opened in the name of the minor and will be operated by the guardian.
Note: The minor is to be the sole beneficiary.
Guidelines For Opening Account
The NPS for minor accounts can be opened through registered Point of Presence (POPs) with PFRDA. It can be done online through the e-NPS platform or in physical mode at Major Banks, India Post, and pension funds.
Documents Needed To Open Up An Account
- Date Of Birth Proof: Documents showing the date of birth proof of the minor, such as birth certificate, school leaving certificate, matriculation certificate, PAN, or a valid passport.
- KYC of the Guardian: The guardian is required to provide identity and address proof, which includes Aadhaar, driving license, passport, voter’s ID card, NREGA job card, or any document issued by the National Population Register.
- Bank Account: In case the guardian is an NRI, an NRE or NRO bank account, either solo or joint in the name of the minor.
Issuance Of PRAN
Permanent Retirement Account Number (PRAN) will be issued in the name of the minor.
Contribution
- Minimum contribution: Rs 1000 per annum
- Maximum contribution: No limit
Guardian can choose any one from several pension funds that are registered with the PFRDA.
