National Pension System (NPS) Terms and Conditions

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Terms and Conditions for National Pension System (NPS)

These Terms and Conditions (‘Terms and Conditions’) apply to and regulate the operation of the National Pension System (‘NPS’) offered by the Government of India and the provision of services by ICICI Bank, acting in its capacity as a registered Point of Presence (‘POP’) under the National Pension System, governed by the Pension Fund Regulatory and Development Authority (PFRDA), in India. The Terms and Conditions govern the general relationship (including, without limitation, transactions relating to the operation, maintenance of the NPS Account and Subscriber registration, contribution processing, servicing requests and grievance handling) between the Subscriber (defined below) and ICICI Bank, having its registered office at: ICICI Bank Tower, Near Chakli Circle, Old Padra Road, Vadodara 390007, India. These Terms and Conditions shall be in addition to any other terms as stipulated by ICICI Bank from time to time on its website (defined below) whether pertaining to the NPS Account or in relation to other products, services or offers provided by ICICI Bank.

Any other Services (defined below) may be offered to the Subscriber at the discretion of ICICI Bank or on the basis of the eligibility criteria of a Subscriber for which specific Terms and Conditions may be applicable. In case of a conflict between any of these Terms and Conditions and the Terms and Conditions specified for the above-mentioned other Services, specific Terms and Conditions of such other Services shall prevail.

1. Definitions

• ‘Applicable laws’ shall mean the laws of India and all the statutes, rules, regulations, ordinances, notifications, orders, guidelines and policies notified or promulgated pursuant thereto and modifications thereof in force from time to time.

• “CRA’ shall mean the Central Recordkeeping Agency which is appointed under the NPS to facilitate record keeping and transaction processing and such other activities as prescribed under applicable laws.

• ‘Corporate NPS’ shall mean the NPS Corporate Sector Model governed by the PFRDA to enable Corporates to offer NPS Accounts to their employees.

• ‘NPS’ shall mean National Pension System.

• ‘PFRDA’ shall mean Pension Fund Regulatory and Development Authority.

• ‘POP’ shall mean Point of Presence registered with PFRDA.

• ‘POP SP (Point of Presence Service Provider)’ shall mean the network of ICICI Bank Branches under POP which provide NPS services.

• ‘PRAN’ shall mean Permanent Retirement Account Number generated under NPS.

• ‘Subscriber’ shall mean any person who is interested in availing the services of ICICI Bank for NPS.

• ‘Trustee Bank’ shall mean the bank appointed under NPS which shall facilitate fund transfers across various PRANs.

• ‘Website’ refers to the website owned, established and maintained by ICICI Bank on the URL www.icici.bank.in.

   

2. Interpretations

• All references to singular include plural and vice versa and the word ‘includes’ should be construed as ‘without limitation’.

• Words importing any gender include all other genders.

• Reference to any statute, ordinance or other law includes all regulations and other instruments and all consolidations, amendments, re-enactments or replacements for the time being in force.

• All headings, bold typing and italics (if any) have been inserted for convenience of reference only and do not define limit or affect the meaning or interpretation of these Terms and Conditions.

• Reference to any law or legislation, regulation, rule shall mean, applicable constitution, statute, law, rule, regulation, ordinance, judgment, order, decree, authorisation or any published directive, guideline, notice, requirement or governmental restriction, having the force of law in any jurisdiction and include laws as amended from time to time.

3. Applicability of Terms and Condition

A citizen of India, whether Resident or Non-Resident, can avail the facility of National Pension System (‘NPS’), subject to the following conditions:

• The applicant should be between 0 – 85 years of age as on the date of submission of his/her application to the Point of Presence - Service Provider(‘POP-SP’). Customers opening an account before completing 18 years of age will be able to open an NPS Vatsalya (minor) Account.

• The applicant should comply with the Know Your Customer (‘KYC’) norms as detailed in the Subscriber registration application form. All the documents required for KYC compliance need to be mandatorily submitted.

• The applicant must ensure that the Subscriber registration application form is duly filled up with photograph, signature, mandatory details, scheme preference details etc. and must submit KYC documentation with respect to proof of identity and proof of address of the applicant.

• The applicant has no objection to authenticating their application with the Aadhaar-based system and to giving consent under the Aadhaar Act 2016.

• After the NPS Account is opened, the Central Record Keeping Agency (‘CRA’) shall mail a ‘Welcome Kit’ containing the Subscriber’s unique PRAN Card and the complete information provided by the Subscriber in the Subscriber registration application form. The PRAN will be the primary means of identifying and operating the Account. The applicant will also receive a Telephone Password (‘TPIN’) which can be used to access the account on the Customer Care number (1-800-222080). The applicant will also be provided an Internet Password (‘IPIN’) for accessing the Account on the CRA portal on a 24x7 basis.

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  1. Tier-I Account: The applicant shall contribute his/her savings for retirement into this non-withdrawable Account. This is the retirement account, and the applicant can claim tax benefits against the contributions made in it, subject to the Income Tax rules in force.

  2. Tier-II Account: This is a voluntary savings facility. The applicant will be free to withdraw his/her savings from this account whenever he/she wishes. This is a not a retirement account and the applicant can’t claim any tax benefits against contributions to this account.

• The Subscriber can contribute the amount through cash, local cheque, demand draft at his/her chosen POP-SP. However, ICICI Bank will not accept cash beyond ₹50,000. No outstation cheques shall be accepted for any contributions.

• In cases where the Subscriber is enrolled under the corporate model of National Pension System through a corporate which has entered into a separate agreement/memorandum of understanding with ICICI Bank, the Terms and Conditions of such agreement/ memorandum of agreement shall govern the operations, administrative and facilitation aspects of contributions and services as agreed between the corporate and ICICI Bank. 

4. Minimum Contribution Requirement

• Minimum Contributions (For Tier-I Account)

  1. Minimum contribution at the time of account opening -  ₹250

  2. Minimum contribution amount for each subsequent contribution is ₹10

  3. Minimum contribution per year - ₹1,000 to keep the account active

  4. Minimum number of contributions in a year – 1

• In case of non-compliance with the mandatory minimum contributions:

  1. If the Subscriber contributes less than ₹1,000 in a year, his/her account would be frozen and further transactions will be allowed only after the Account is reactivated.

  2. To reactivate the Account, the Subscriber would have to pay the minimum contribution of ₹1,000.

• Minimum contributions (For Tier-II Account)

  1. Minimum contribution at the time of account opening – ₹1,000 and for all subsequent transactions, a minimum amount of ₹250 per contribution.

  2. Minimum number of contributions in a year – 1

5. Investment under NPS

Under NPS, the manner in which the money is invested will depend upon the Subscriber’s own choice. NPS offers several funds and multiple investment options to choose from. In case the Subscriber does not want to exercise a choice, his/her money will be invested as per the ‘Auto Choice’ option, where the money will be invested in various type of schemes as per the Subscriber’s age. NPS offers two approaches to invest the Subscriber’s money:

• Active choice – Individual Funds: Asset Class E (Equity), Asset Class C (Corporate Bonds) and Asset Class G (Government Securities)

  The Subscriber will have the option to actively decide as to how his/her NPS pension wealth is to be invested in the following three options:

  1. Asset Class E - Investments in predominantly equity market instruments

  2. Asset Class C - investments in corporate bonds

  3. Asset Class G - investments in Government securities

   

  The Subscriber can choose to invest his/her entire pension wealth in C or G Asset classes and up to a maximum of 75% in equity market instruments (Asset class E). The Subscriber can also distribute his/her pension wealth across E, C and G Asset classes, subject to such conditions as may be prescribed by the Pension Fund Regulatory and Development Authority (‘PFRDA’) who is the regulator for the product.

• Auto Choice – Lifecycle Fund

   

  NPS offers an easy option for those participants who do not have the required knowledge to manage their NPS investments. In case Subscribers are unable/unwilling to exercise any choice with regard to asset allocation, their funds will be invested in accordance with the Auto Choice option. In this option, the investments will be made in a lifecycle fund. Here, the fraction of funds invested across the three asset classes will be determined by a pre-defined portfolio. This investment option offers the customers to choose between 4 different schemes i.e. Aggressive, Moderate, Conservative and Balanced Lifecycle Funds

6. Withdrawal/ Exit

• NPS has a lock-in period of 15 years or upon attainment of the age of 60 years or on retirement (whichever is earlier)

• Withdrawals:

  1. Total Corpus - ₹8 lakh or less
     -100% withdrawal in a lump sum or via Systematic Withdrawal/Systematic Unit Redemption (‘SWL/SUR’)
     -Maximum 80% lumpsum tax-free withdrawal or via SLW/SUR and minimum 20% as annuity purchase

  2. Total Corpus – Between ₹8 lakh ₹12 lakh
     -Maximum ₹<6> lakh lumpsum tax-free withdrawal or via SLW/SUR and remaining funds can be used to purchase annuity or withdrawn tax-free via SLW/SUR over a minimum period of 6 years
     -Maximum 80% lumpsum tax-free withdrawal or via SLW/SUR and minimum 20% as annuity purchase

  3. Total Corpus - Above ₹12 lakh
     Maximum 80% lumpsum tax-free withdrawal or via SLW/SUR and minimum 20% as annuity purchase

The Subscriber has the option to defer the lumpsum withdrawal till the age of 85 years.

In case of attainment of 60 years of age or superannuation (i.e. retirement), the Subscribers can also initiate withdrawal request in the CRA system which shall subsequently have to be verified by the Nodal Officer (POP/Banks) in the CRA system.

• At any time before completion of 15 years of account opening or attaining the age of 60 years:

  1. There is no lock-in period to initiate a pre-mature closure of the NPS Account

      

     • If the corpus is more than ₹5 lakh - at least 80% of the accumulated pension wealth of the Subscriber needs to be utilised for purchase of annuity providing for monthly pension to the Subscriber and the balance is paid as a lumpsum payment or SLW/SUR to the Subscriber.

     • If the corpus is less than ₹5 lakh- the Subscriber has an option to withdraw the complete funds

  2. The Subscriber can also initiate a partial withdrawal of up to 25% of the self-contribution. This withdrawal can be done a total of 4 times in the complete NPS lifecycle. The lock-in period for the first withdrawal is 3 years and for subsequent withdrawals, it is 4 years each.

• Death of the Subscriber:

   

  The entire accumulated pension wealth (100%) would be paid to the nominee/legal heir of the Subscriber or they can choose to get annuity of the complete amount.

   

  Under NPS, PFRDA has entrusted the responsibility of receiving, processing and settlement of all withdrawal claims to the CRA and has created a special NPS Claim Processing Cell (‘NPSCPC’) for the purpose of handling all types of withdrawal claims.

   

  The withdrawal process is now available online

7. New updated guidelines for NPS Vatsalya Accoun

• A. Scheme Overview

  ​Eligibility: NPS Vatsalya Accounts are available for Indian citizens who are below the age of 18 years, where parents or legal guardians can open and manage the Account on behalf and for the sole benefit of the minor.

  ​​Regulation: Governed by the PFRDA under the NPS Vatsalya Scheme Guidelines 2025.

• B. Account Operation & Access

  ​Opening Accounts: NPS Vatsalya Accounts can be opened through registered Points of Presence (Banks, Post Offices), eNPS platform or approved electronic modes.

  ​Monitoring: Subscribers can track performance via the CRA mobile app, web login or physical statements.

  ​Continuity: Upon the minor reaching 18 years of age, the Account is converted into a standard NPS Account and the Subscriber shall be required to complete fresh KYC and conform to the other requirements as may be stipulated by PFRDA from time to time.

• ​C. Exit & Withdrawal Rules

  ​Withdrawal at Maturity (Age 18): Upon attaining the age of majority, a Subscriber may:

  1. Continue with NPS; or

  2. Up to 80% of the accumulated corpus may be withdrawn as a lumpsum and the balance must be reinvested in an annuity plan; or

  3. The entire accumulated corpus in the Account can be withdrawn as a lumpsum if the total corpus is less than ₹8 lakh.

  Default Shifting: If none of the above options is selected by the age of 21, the Account is automatically moved to a high-risk (equity-heavy) variant under the Multiple Schemes Framework.

  ​Partial Withdrawals: Partial withdrawal of the NPS corpus is allowed for specific contingencies (as mentioned in the PFRDA Guidelines amended from time to time) before the subscriber turns 18.

• ​D. Death & Contingencies

  ​Subscriber’s Death: The full accumulated corpus is paid to the guardian, nominee or legal heir. The recipient may also transfer these funds to their own NPS account.

  ​Guardian’s Death: If the registered guardian passes away, a new guardian must be registered by submitting necessary KYC documents.

  ​Dual Parent Loss: A legally appointed guardian may continue the Account with or without further contributions until the Subscriber reaches majority.

8. Charges

NPS offers Indian citizens a low-cost option for planning their retirement. The following are the charges under NPS:

9. Change of Terms

1. ICICI Bank shall have the discretion to amend or supplement any of the Terms and Conditions, in accordance with applicable laws and regulatory directions.

2. ICICI Bank may communicate the amended Terms and Conditions by hosting them on the website or in any other manner as decided by ICICI Bank.

3. The Subscriber shall be responsible for regularly reviewing these Terms and Conditions including amendments, as may be posted on the website.

10. Governing Law

The laws of India shall govern these Terms and Conditions. The Subscriber and ICICI Bank hereby agree that any legal action or proceedings arising out of the Terms and Conditions shall be brought to the courts or tribunals at Mumbai in India and that the Subscriber and ICICI Bank irrevocably submit themselves to the jurisdiction of such courts and tribunals. ICICI Bank may, however, at its absolute discretion, commence any legal action or proceedings arising out of the Terms and Conditions in any other court, tribunal or other appropriate forum and the user hereby consents to that jurisdiction. Any provision of these Terms and Conditions, which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of prohibition or unenforceability but shall not invalidate the remaining provisions of the Terms and Conditions or affect such provision in any other jurisdiction.