The National Pension System was launched in India in ______
Show answer & explanation
Correct answer: C
Explanation
The correct answer is Option 3: 2004.
Explanation:
The National Pension System (NPS) was launched in India on January 1, 2004.
Objective: It was introduced with the aim of replacing the Old Pension Scheme (OPS) for government employees (excluding the armed forces). Its primary goal is to provide financial security to individuals after retirement and to promote the habit of saving.
Scope: Initially, it was available only to new government employees; however, from May 1, 2009, it was opened to all citizens of the country (including workers in the unorganized sector) on a voluntary basis.
Regulator: The NPS is regulated by the PFRDA (Pension Fund Regulatory and Development Authority).
Key Features of NPS:
PRAN Card: Each subscriber is allotted a unique 12-digit 'Permanent Retirement Account Number'.
Account Types:
Tier-I: This is a mandatory retirement account wherein premature withdrawals are restricted.
Tier-II: This is a voluntary savings account from which you can withdraw money at any time (provided you hold an active Tier-I account).
Portability: Even if you change your job or move from one city to another, your PRAN account remains the same.
Additional Facts:
PFRDA: It was established in 2003 but was accorded statutory status in 2013. Its headquarters is located in New Delhi.
Atal Pension Yojana (APY): This is also a scheme based on the NPS framework, launched in 2015 primarily for the unorganized sector.
Potential Questions for Upcoming Exams:
Question: From which year was the NPS made applicable to all citizens?
Answer: 2009.
Question: How many digits does a PRAN card contain?
Answer: 12 digits. Question: Which body regulates the pension sector?
Answer: PFRDA (Pension Fund Regulatory and Development Authority).