National Pension System:
• The National Pension System (NPS) is a defined-contribution pension system in India regulated by the Pension Fund Regulatory and Development Authority (PFRDA).
• It was introduced in 2004 to replace the Old Pension Scheme and is open to all Indian citizens between the ages of 18 and 70.
• NPS offers two types of accounts: Tier I (pension account with restrictions) and Tier II (investment account similar to a mutual fund).
• Contributions to NPS receive tax exemptions under various sections of the Income Tax Act, making it a tax-efficient investment option.
• NPS allows premature withdrawals under certain conditions, such as for specified reasons after 3 years or if the pension collected is less than ₹5,00,000.