NPS Swavalamban Scheme {स्वावलंबन योजना}

Updated on Jul 01, 2020

The NSP Swavalamban scheme is a pension scheme for the senior citizens who belong to the unorganized sector. The project aims to give them a better and secure life financially. The Government of India had launched several pension schemes over the past years, which is one of them. This micro-pension plan is by the Government of India is regulated by the PFRDA or Pension Fund and Development Authority. The main objective is to build a self-reliant retirement plan for the citizens of India. 

Under this scheme, the minimum investment amount is INR 1000 per year, and the maximum amount is INR 12000 per year. After that, the Government provided INR 1000 in each of the individual's account for the five years. Until now, more than 40 lakh people have been benefited under this scheme.

Components

Savings Amount

Under this scheme, the minimum savings amount for opening an account is one hundred rupees only. Initially, the individuals didn't have to put money in the account per year. But with the regular deposits of one thousand per year, the Government provided INR 1000 for the eligible accounts.

Reliance on Bank

The scheme partially depends on bank accounts as the beneficiaries will receive money through the bank account. Plus, the investment is made via bank accounts.

Beneficiaries

The primary target of this scheme was the people with the poor economic background. The self-employed, farmers, laborers are given more importance under this scheme.

Tax benefits

The funding gained by the movement was used to aid this scheme financially. Plus, the investors are supposed to benefit the taxes under the plan. The amount received by the individuals is mostly the tax benefits.

Investment

There is no minimum or maximum amount on the investment amount for this pension scheme. The lowest amount any individual can submit is a hundred rupees. Plus, the people can put money in the account as many times as possible.

Eligibility Criteria

  • The individual must be a citizen of India.
  • People aged 18 to 60 years are eligible for this scheme.
  • The individual must be from the unorganized sector and not an employee from the State or Central Government.
  • He or she must not be benefited from any other pension scheme from the state or central government.
  • The person must not be helped under the programs like Employees' provident fund, coal mines provident fund and miscellaneous provisions act, seaman's provident fund, tea plantations provident fund, and pension fund scheme Jammu and Kashmir employees provident fund, etc.
  • The initials submitted between INR 1000 to INR 12000 in their accounts will receive an additional one thousand rupees from the Government.

Process

  • The eligible people under this scheme must open an NPS Swavalamban scheme.
  • Required documents for KYC
  • The initial amount of 100 rupees must be deposited in the account.
  • Submitting the filled form to the Aggregator.
  • Search the closest Aggregator.

Investment

The PFDRA must classify the investment. The investment must be similar around all the individuals who are under one single Aggregator. The Pension Fund Manager has to manage and specify the funds from time to time. As of now, the scheme with a similar investment pattern is identical to the programs provided by the Central Government for their employees, which is for their employees. The Aggregator must choose one from the single PFMs for the investors. The PFMs are:

  • UTI Retirement Solutions Limited
  • LIC Pension Fund Limited
  • ICICI Prudential Pension Funds Management Company Limited
  • SBI Pension Funds Private Limited
  • DSP Black Rock Pension Fund Managers Pvt. Limited
  • Reliance Capital Pension Fund Limited
  • Kotak Mahindra Pension Fund Limited
  • HDFC Pension Management Company Limited

The aggregators also need to choose the investment for the contributions via all the PMFs according to the Central Government Scheme in the same way as for the employees of the Government. The PFRDS also rechecks the allotment ratio for this scheme regularly. Under this scheme, the allotment is made via these Fund Managers:

  • UTI Retirement Limited
  • LIC Pension Fund
  • SBI Pension Funds Private

Withdrawal under NPS Swavalamban Scheme

The quitting process from the scheme is same as per the similar term, and conditions for the exits of Tier-I accounts are allowed which is quitting at sixty age along with 40% of a minimum annuity of the total pension amount and quitting before the age of sixty with 80% minimum annuity for pension wealth. But the exit will be issued for the prevailing condition, which is the amount for a total pension to be annuity must be enough for the INR 1000 per month. The pension amount will also be checked from time to time for revisions.

Frequently Asked Questions

Q. What is the NPS Swavalamban scheme?

The Swavalamban Pension Yojana is a scheme for the senior citizens who belong to the unorganized sector to give them a better and secure life financially.

Q. When was the scheme launched?

The NPS Swavalamban scheme was launched in 2010.

Q. Who launched it?

The UPI government launched the scheme.

Q. What is the objective?

The scheme's objective is to give the senior citizens a better and secure life financially who belong to the unorganized sector. You can learn more about this scheme on the official website.

Q. What is the minimum investment?

The minimum investment amount is INR 1000 per year with an initial deposit of a hundred rupees, and the maximum amount is INR 12000 per year. After that, the Government provided INR 1000 in each of the individual's account for the five years. Until now, more than 40 lakh people have been benefited under this scheme.

Q. What is the eligibility?

People aged 18 to 60 years are eligible for this scheme. The individual must be from the unorganized sector and must not an employee from the State or Central Government. Plus, He or she must not be benefited from any other pension scheme from the state or central government.

Q. Who are the beneficiaries under NPS Swavalamban scheme?

The primary beneficiaries under this scheme were the people with the poor economic background. The self-employed, farmers, laborers are given more importance under this scheme.


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WRITTEN BYVarsha Verma

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