"NPS -Swavalamban Model" is designed to ensure ultra-low administrative and transactional costs, so as to make small investments viable.
Swavalamban Yojana is a scheme announced by the Government of India under which Government will contribute Rs. 1000 per year to each NPS – Swavalamban account opened in year 2010-2011,2011-2012 ,2012-2013 for five years as under.
- Account opened in 2010-2011 will get the benefit till 2014-2015
- Account opened in 2011-2012 will get the benefit till 2015-2016
- Account opened in 2012-2013 will get the benefit till 2016-2017
NPS – Swavalamban account opened in the period 2013-2014 to 2016-2017 will get the Swavalamban benefit up to 2016-17.
Distinguishing Features of NPS -Swavalamban:
- Voluntary - Open to eligible citizens of India, in the age group of 18–60 years. Subscriber is free to choose the amount he/she wants to invest every year.
- Simple - Eligible individuals in the unorganized sector can open an account through their Aggregator and get an Individual subscriber (NPS - Swavalamban) Account.
- Safe - Regulated by PFRDA, with transparent investment norms, regular monitoring and performance review of fund managers by NPS Trust.
- Economical - Ultra-low cost structure with no minimum amount required per annum or per contribution.
