NPS meaning in Banking ?

Answer:

What is New Pension Scheme mean?

National Pension System Trust (NPS Trust) is a specialised division of Pension Fund Regulatory and Development Authority which is under the jurisdiction of Ministry of Finance of the Government of India. The National Pension System (NPS) is a voluntary defined contribution pension system in India. National Pension System, like PPF and EPF is an EEE (Exempt-Exempt-Exempt) instrument in India where the entire corpus escapes tax at maturity and entire pension withdrawal amount is tax-free.

NPS started with the decision of the Government of India to stop defined benefit pensions for all its employees who joined after 1 April 2004. While the scheme was initially designed for government employees only, it was opened up for all citizens of India between the age of 18 and 65 in 2009, for OCI card holders and PIO's in October 2019. On August 26, 2021, PFRDA increased the entry age for the National Pension System (NPS) from 65 years to 70 years. As per the revised norms, any Indian Citizen, resident or non-resident and Overseas Citizen of India (OCI) between the age of 65-70 years can join NPS and continue or defer their NPS Account up to the age of 75 years. It is administered and regulated by the Pension Fund Regulatory and Development Authority (PFRDA).

On 10 December 2018, the Government of India made NPS an entirely tax-free instrument in India where the entire corpus escapes tax at maturity; the 40% annuity also became tax-free. The contribution under Tier-II of NPS is covered under Section 80C for deduction up to Rs. 1.50 lakh for income tax benefits, provided there is a lock-in period of three years. The changes in NPS was notified through changes in The Income-tax Act, 1961, during the 2019 Union budget of India. NPS is limited EEE, to the extent of 60%. 40% has to be compulsorily used to purchase an annuity, which is taxable at the applicable tax slab.

Contributions to NPS receive tax exemptions under Section 80C, Section 80CCC and Section 80CCD(1) of Income Tax Act. Starting from 2016, an additional tax benefit of Rs 50,000 under Section 80CCD(1b) is provided under NPS, which is over the Rs 1.5 lakh exemption of Section 80C. Private fund managers are important parts of NPS. NPS is considered one of the best tax saving instruments, after 40% of the corpus was made tax-free at the time of maturity and it is ranked just below equity-linked savings scheme (ELSS).

reference

Full Form	Category
National Park Service	Academic & Science
National Public School	Academic & Science
Nominal Pipe Size	Academic & Science
Non-production Spend	Accounts and Finance
New Pension Scheme	Banking
Non Priority Sector	Banking
National Payment Switch	Business
Nikon Professional Services	Business
Next Process Solutions	Business
Non Product Specific	Business
National Pipe Straight Thread	Business
Norminal Pipe Size	Business
Network Protein Sequence	Chemistry
Norman Public School	Community
Northbridge Public Schools	Community
National Park Service's	Community
Norfolk Public Schools	Community
Newark Public Schools	Community
National pension scheme	Community
November Power Society	Community
Non-Public School	Community
National Portrait Society	Community
Nkk Press Service	Community
Naval Postgraduate School	Community
Non-Public Nonsectarian School	Community
Nick Pass Scanner	Computing
Novell Productivity Specialist	Computing
National Program Service	Computing
National Provider System	Computing
Netscape Proxy Server	Computing
Network Play System	Computing
Net Promoter Score	Computing
Network Planning Solution	Computing
Network Print Server	Computing
Network Policy Server	Computing
Net Promoter Scoring	Computing
Novell Portal Services	Computing
Nero Product Setup	Computing
Net Promoter Scores	General
Nucleosome Positioning from Sequencing	General
Net Promoter System	General
National Passenger Survey	General
Nationwide Pool Supply	General
Net Promotor Score	General
New Psychoactive Substances	General
No Problem Sweetie	General
New Product Showcase	General
National Procurement Service	General
Non Point Source	General
Net Positive Suction	General
Novel Psychoactive Substances	General
Neutral Pressure Switch	General
No Parking Sign	General
New Paris Speedway	General
Nitro Pro Stock	General
Nascar Pro Series	General
Nodo Porta Scorrevole	General
N Power Shift	General
National Parking Solutions	General
National Park System	General
Natural Progressive Sound	General
National Producers Surplus	General
Notes Per Second	General
No Profit For Shipping	General
New Psychoactive Substance	General
Nathan Phillips Square	Governmental
Nano Political Sissies	Governmental
National Pension Service	Governmental
Nationale Partij Suriname	Governmental
Nouveau Parti Socialiste	Governmental
National Party of Scotland	Governmental
Nuovo Partito Socialista	Governmental
Nuclear Power Station	Governmental
National Pharmaceutical Stockpile	Governmental
Nutrition Programs Staff	Governmental
NAPASAR	Indian Railway Station
Neurotransmitter Production Support	Medical
National Prescribing Service	Medical
National Pharmaceutical Services	Medical
Neonatal Pediatric Specialty	Medical
Neutrophils	Medical
Nasopharynx Swab	Medical
No Problems	Messaging
Nonprior Service	Military and Defence
Nuclear Planning System	Military and Defence
Nato Precautionary System	Military and Defence
Network Power Switch	Networking
Telnet Power Switch	Networking
Nanoparticles	Physics Related
Nasa Planning Studies	Space Science
National Paintball Supply	Sports