Pension Fund Regulatory and Development Authority (PFRDA) was established by the
Government of India on August 23, 2003 to promote old age income security by establishing,
developing and regulating pension funds, to protect the interests of subscribers
to schemes of pension funds and for matters connected therewith or incidental thereto.
The NPS is a new vouluntary contributory pension scheme introduced by the Central
Government . Under the National Pension System , individuals can open a personal
retirement account and can accumulate a pension corpus during their work life to
meet financial needs post retirement. These contributions would grow and accumulate
over the years, depending on the returns earned on the investment made. When the
person retires, he will be able to use these savings to take care of the needs and
expenses of his family during old age.The subscribers may use the accumulated pension
wealth under the scheme to purchase a life annuity from a life insurance company.
Alternatively, depending on the age of the subscriber, a part of the wealth may
be withdrawn as lump-sum.
ICICI Securities Limited (I-Sec) has obtained the Point of Presence (POP) Registration
Certificate from PFRDA to offer NPS accounts. Any individual customer of icicidirect.com
desiring to open an NPS account t can do so by clicking on "Subscribe NPS" and fulfilling
the prerequisite process. The offer document containing details of the NPSfor opening
NPS account are available on the website of PFRDA (www.pfrda.org.in) as well as
Under NPS, following two types of accounts will be available to you:
Tier I account : You shall contribute your savings for retirement into this
non-withdrawable account. Tier I account is available online and you
can apply by logging in to your ICICIdirect.com Account (Click "Subscribe NPS" link
under the NPS >> Transact section). You can also open the account by visiting the
Tier II account : This is a voluntary savings facility. You will
be free to withdraw your savings/redeem your Tier II units from this PRAN account
whenever you wish. To open this account an active Tier I account is a prerequisite.
Tier II account is available online and you can apply by logging in to your ICICIdirect.com
Account. Click "Subscribe NPS Tier II". You can also open the account by visiting
the nearest store.