National Pension System (NPS) is a defined contribution pension scheme notified by
Government of India vide Ministry of Finance notification number F. No. 5/7/2003-ECB&PR,
dated 22nd December, 2003. NPS enables an individual to undertake retirement planning while
in employment. With systematic savings and investments, NPS facilitates accumulation of a
pension corpus during their working life. It is regulated by Pension Fund Regulatory
and Development Authority (PFRDA).
NPS is an easily accessible, low cost, tax-efficient, flexible and portable retirement
savings account. It provides a platform for savings to create a Retirement Corpus (Pension Wealth)
through 4 baskets of investments i.e. Equity (E), Corporate Bonds (C), Govt. Securities (G)
and Alternate Assets (A) commonly known as E, C ,G and A.