NPS account new rules: credit card deposits in Tier-II account discontinued
The Pension Fund Regulatory and Development Authority (PFRDA) has recently made a major change in the National Pension System (NPS) rules. Now, the pension fund regulator PFRDA has decided to stop the facility of payment of contribution through credit cards, making major changes in the Tier-II account of NPS. PFRDA had given this information through a circulation on August 3.
After this decision of PFRDA, the facility of payment by credit card for Tier-I account of NPS will continue, while for Tier-II account payment by credit card will no longer be possible. It is noteworthy that earlier the contribution could also be made through credit card in Tier-II account also.
What is NPS Tier-II Account
There are two types of accounts in NPS scheme. It consists of Tier-I and Tier-II accounts. Tier-I is the primary account, which is important for pension and tax benefits. NPS Tier-II account is voluntary. This is purely an investment account. Tier-II accounts do not offer any tax exemption benefits, but are a great savings option. NPS Tier-II account is a liquid account. Through this, you can choose the plan of equity, government or corporate layer investment.
Money can be withdrawn from NPS Tier-II account anytime
You can invest and withdraw money anytime in NPS Tier-II account. Even you can deposit and withdraw money in it in a day. There is no minimum investment limit like Tier-I.
