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admin — Sun, 22 Sep 2024 11:17:43 +0000

RASP admin Sun, 09/22/2024 - 11:17

1. What is Android USB Debugging?

Android USB Debugging is a tool that developers use to troubleshoot Android apps. But cybercriminals also use it to do bad things, like steal data or install apps on devices without permission.

There are some risks associated with using USB Debugging:

- Criminals can bypass existing security protections on devices.

- They can extract or install apps on devices without permission.

- They can also read and alter data while the app is running.

- Additionally, they can attach to running processes, trace and modify application memory, and perform function or method hooking. Finally, they can establish a remote shell (to run and execute commands remotely) on a device and inject code remotely.

2. What is a Rooted Android Device?

An Android device with root access allows users to go beyond the security restrictions put in place by the Android operating system. This can give users administrator or "superuser" access over the Android OS, which can pose a number of security risks.

These risks include:

- the ability to install untrusted apps,

- vulnerability to malware and hacking,
- granting hackers complete access to your phone.

Additionally, malicious malware apps can steal your sensitive data like login details, passwords, and payment details. Finally, losing root access can also mean losing access to some of the inbuilt security features of the Android OS.

3. What is a Jailbroken iPhone Device?

Jailbreaking an iPhone allows users to get around the security restrictions that are put in place by iOS.

This can leave your phone vulnerable to malware and hackers.

They could steal your sensitive data, like login details and passwords, or even have full access to your phone.

Jailbreaking also disables many of the security features that are built into iOS.

4. What is Screen Mirroring/Screen Casting?

Screen mirroring technology lets one device show the media that is playing on another device.

This can be dangerous because fraudsters can see and access confidential information like CVV numbers, OTP details, and passwords. They can use this information to steal money from user accounts.

5. What is Screen Recording?

Screen recording is when you take a video of what is happening on your device screen. It can be done using the built-in camera or with special applications.

Screen recording can be risky because fraudsters can see and access confidential information like CVV numbers, OTP details, and passwords. They can also misuse this information to steal money from your account.

6. What is Screen Sharing?

Screen sharing is a technology that lets you share what's on your screen with other devices in real time. Sometimes this also includes giving someone else control of your device.

Screen sharing can be risky because:

- Apps you install can be untrustworthy and may steal your personal information, such as login details, passwords and payment information.

- Malicious malware apps can access confidential data like CVV numbers and One-Time Passcodes (OTP) which can then be used to commit fraud.

- Fraudsters can use the shared screen to view and access confidential information like passwords, which they could then misuse to steal money from user accounts.

7. What is Hooking Framework?

Hooking is a technique used by computer programmers to change how an application or operating system behaves.

Attackers use hooking frameworks to intercept function calls, messages, or API calls and then modify the instructions or output. This gives the attacker control over the program's execution path and allows them to redirect it to their own malicious code.

Malicious malware apps can steal your sensitive data like login details, passwords, payment details, etc. They can also monitor and intercept incoming and outgoing data from your mobile device.

8. What is Java Debugger?

The Java Debugger (JDB) is a tool that Java programmers can use to debug their programs. JDB can help find and fix errors in a Java program. However, it can also be used by attackers to cause damage to a system.

Attackers can use JDB to gain access to bank servers through a specific port.

9. What is Malicious Software/Program?

Malicious software is software that is designed to harm a computer, mobile device, network, or server. There are different types of malicious software, including computer viruses, worms, Trojan horses, ransomware and spyware.

There are security risks associated with malware.

For example, malicious malware apps can steal your sensitive data like login details, passwords and payment details.

Fraudsters can misuse confidential information to steal money from user accounts. Attackers can gain access to Bank servers via a specific port if they have malware on their device.

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Gaurav Ramdev Takes the Helm: ASSOCHAM's New Co-Chair to Revolutionise Branding and Marketing

Kakoli — Tue, 02 Jul 2024 11:26:54 +0000

Gaurav Ramdev Takes the Helm: ASSOCHAM's New Co-Chair to Revolutionise Branding and Marketing Kakoli Tue, 07/02/2024 - 11:26

Associated Chambers of Commerce and Industry of India (ASSOCHAM) has reorganised its boards for the years 2024 and 2025 and nominated Gaurav Ramdev as co-chairperson of the ASSOCHAM National Council on Branding and Marketing. Mr. Ramdev is the chief marketing officer of Protean eGov Technologies Limited.

This major step is going to give a new direction to ASSOCHAM as it is looking to further strengthen its efforts in the sphere of marketing and branding with the help of Ramdev’s experience and expertise.

A Strategic Appointment

Gaurav Ramdev is a well-known personality in the branding and marketing industry having more than two decades of experience to his credit. His appointment is expected to bring new ideas and strategic planning on how ASSOCHAM can improve the brand value and market position of member organisations.

In his career trajectory, Ramdev has diverse experience in the corporate and entrepreneurial worlds. He has been actively involved in managing several successful marketing campaigns and rebranding exercises that have been appreciated and recognised in the market.

Ramdev has previously worked with companies such as Coca-Cola, ITC, Britannia, and Razorpay, and he is now a member of the executive team and the chief marketing officer at Protean.

Driving Innovation and Growth

As the Co-Chair of the council, Ramdev has an opportunity to lead the council's endeavours in adopting fresh and sustainable approaches to business growth. He will mainly concentrate on creating a platform that encourages the sharing of information and ideas within the industry. Ramdev will now work under Sanjay Nayar’s leadership. Sanjay Nayar is the president of ASSOCHAM.

"It is an honour to be the Co-Chairperson of such an esteemed industry body and I look forward to collaborating with Chairman, my council members and industry peers to contribute to the efficacy of ASSOCHAM and further its mission of being the most trusted knowledge chamber." – Gaurav Ramdev

ASSOCHAM's Vision for the Future

Over the past many years, ASSOCHAM has been at the forefront of promoting the cause of the business fraternity in India. The addition of Gaurav Ramdev is in harmony with its vision to offer improved service and aid to its members to overcome the challenges in the advanced economy.

In this vision, the National Council on Branding and Marketing is vital. It allows members to deliberate on issues affecting their organisations, share information on potential avenues, and harness the best branding and marketing experiences. The council is expected to grow in influence and efficiency with Ramdev at the helm of operations.

Collaborative Efforts and Future Plans

Ramdev's appointment is expected to usher in increased collaboration of ASSOCHAM with academic institutions, industry bodies, and international organisations to foster a more integrated approach to branding and marketing.

Conclusion

ASSOCHAM’s decision to appoint Gaurav Ramdev as Co-Chair of the National Council on Branding and Marketing is strategic and has positioned the organisation to foster innovation and excellence. Given his many years of experience and a strategic thinking perspective, Ramdev will be capable of leading the council and introducing changes for the benefit of ASSOCHAM and its member organisations.

- Story by Kakoli Laha

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How Does the Digital Financial Services in ONDC Benefit Lenders?

Kakoli — Tue, 02 Jul 2024 08:31:26 +0000

How Does the Digital Financial Services in ONDC Benefit Lenders? Kakoli Tue, 07/02/2024 - 08:31

If you look back in time, you will see that the process of obtaining a loan was so tiresome. People had to run from one lender to another to get a suitable one. This somehow affected the lenders too.

However, now, the total lending landscape has changed. In this evolving world of digital financial services, the Open Network for Digital Commerce (ONDC) is making waves. It promises to transform how financial services, including lending, are provided.

This blog explores how the lending option on ONDC benefits lenders, offering them new opportunities and advantages.

Understanding ONDC and Open Finance

ONDC is an initiative to democratise digital commerce. It aims to create a level playing field by making digital transactions more accessible and affordable. This open finance platform allows various financial services, including lending and insurance, to be seamlessly integrated.

ONDC finance refers to the use of open systems and technologies to provide financial services. It involves sharing financial data through open APIs (Application Programming Interfaces), enabling better collaboration between different financial entities.

Benefits of Lending on ONDC for Lenders

The benefits that lenders can reap from lending facilities made available on the ONDC platform are as follows:

1. Access to a Wider Market

ONDC’s open finance platform connects lenders with a vast network of potential borrowers. This broadens the market, allowing lenders to reach customers they might not have accessed through traditional means. By being part of ONDC, lenders can tap into a diverse customer base, increasing their lending opportunities.

2. Cost Efficiency

Integrating lending services on ONDC reduces operational costs. The open-source finance model eliminates the need for extensive infrastructure and middlemen. Lenders can operate more efficiently, saving time and money. This cost efficiency can be passed on to borrowers in the form of lower interest rates, making loans more attractive.

3. Improved Customer Experience

ONDC’s digital platform offers a seamless experience for both lenders and borrowers. Lenders can provide quick and efficient services, enhancing customer satisfaction. The ease of accessing financial services digitally means faster loan processing and disbursement, which is a significant advantage in today’s fast-paced world.

4. Innovative Financial Products

The integration of finance on ONDC allows for the development of innovative financial products. Lenders can collaborate with other financial service providers to offer bundled products, such as loans combined with insurance on ONDC. These innovative approaches can attract more customers and provide added value to existing ones.

5. Regulatory Compliance and Security

ONDC operates under strict regulatory guidelines, ensuring compliance and security. For lenders, this means that theirs is a trustworthy platform to conduct their business. The open finance technologies used in ONDC ensure that data is secure and transactions are transparent, building trust among lenders and borrowers.

Challenges and the Way Forward

While the benefits are numerous, there are challenges too. Lenders need to adapt to new technologies and possibly change their business models. Also, there may be high initial costs involved in integrating with ONDC. However, the long-term benefits far outweigh these challenges. Continuous adaptation and innovation will be key to leveraging the full potential of lending on ONDC.

Conclusion

Lending on ONDC offers significant benefits for lenders, including access to a broader market, enhanced data and insights, cost efficiency, improved customer experience, innovative financial products, and regulatory compliance.

By embracing digital financial services and open finance technologies, lenders can stay competitive and meet the evolving needs of their customers. The future of finance on ONDC looks promising, paving the way for a more inclusive and efficient financial ecosystem.

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Discover the Next Generation of eSigning with Protean's eSignPro

Kakoli — Mon, 01 Jul 2024 09:16:04 +0000

Discover the Next Generation of eSigning with Protean's eSignPro Kakoli Mon, 07/01/2024 - 09:16

Experience the evolution of digital signature technology with launch of Protean's eSignPro, the cutting-edge solution for electronic signature and stamping solution

Does it feel like you are running a marathon to get one document authorised among loads of paperwork and the weight of awaiting signatures?

Take a deep breath and step into the future with eSignPro—your ultimate weapon against paper-based chaos. This ingenious document digitization suite liberates you from the tedious cycle of printing, signing, and scanning, replacing it with a streamlined, secure, storing and eco-friendly signing experience—all digitally. With eSignPro—the Smart Document Digitisation Suite—you can beat the burden of paperwork and make your desk a stress-free zone.

The push for digital change is leading public institutions, businesses, and various groups to move away from physical paperwork and towards entirely electronic interactions with clients. There is a rapidly growing demand for systems that manage documents digitally, with forecasts suggesting the industry could surge from roughly 4.5–5 billion USD in 2023 to more than 14 billion USD by 2026. This represents an exceptional yearly growth rate of about 28–30%.

Protean, a leader in electronic signature technology with a robust track record since 2016, is excited to introduce eSignPro - the premier eSignature and stamping tool, now with full-stack smart document digitisation suite in India. With a proven history of handling more than 240 million transactions via our eSignature platform, eSignPro stands out as the go-to platform for all your digital agreement requirements.

What is eSign?

eSign is an online electronic signature service that empowers Aadhaar holders to digitally sign documents securely. As a licensed Certifying Authority (CA), Protean is empanelled by the Controller of Certifying Authorities (CCA) to offer eSign services to Application Service Providers (ASPs).

Protean eSignPro

We have enriched our market-leading eSign solution to create eSignPro – a comprehensive Digital Documentation Suite. eSignPro boasts of an array of innovative features. This electronic and digital stamping solution with smart automation, covering end to end documentation and workflow management. Just a few clicks, and voila! Your document is signed, sealed, and stored - all digitally.

A Must-Have for Professionals: Why eSignPro?

Now, let us explore the compelling reasons why eSignPro is a must-have for professionals. Delve into the many benefits that make this platform an indispensable tool for enhancing your professional endeavours.

Complete Digital Journeys: No physical exchange of information is required.
Secure System: A system that creates, monitors, and logs all steps with robust access control.
Customisation: Flexible workflows let clients customise services to their needs.
Built-In Automation: Allows for further automation of the customised solutions according to client needs.
Stress-Free Stamping: Resolve stamp paper concerns with electronic and digital stamping modules.
Role-Based Access: Different roles for access control and personalised dashboards.
Multi-Channel Integration: Easily integrate with email, text messages, or WhatsApp.
Regulatory Compliance: Maintain complete tracking and logs for regulatory adherence.

eSignPro Transforming Business Processes

Discover how eSignPro reshapes business processes:

Efficiency and Time Savings: Loans, account openings, and vendor onboarding now take minutes, saving teams from document assembly, verification, and paperwork.
Enhanced User Experience: Faster and easier paperwork signing for customers, business partners, and employees.
Cost Savings: Eliminate logistics costs associated with paperwork.

Ready to revolutionise your document management? eSignPro can help you redefine your digital journey. Contact us here to discover more about how eSignPro can transform your document management.

Let’s eSign our way to a hassle-free tomorrow!

Frequently Asked Questions

1. What is an electronic signature?

An electronic signature (eSign) is a digital form of a signature used for digitally sign online transactions or document authentication. It is a secure way to sign documents electronically.

2. What is the difference between electronic signature and digital signature?

An electronic signature is a broader term that refers to any method of signing a document electronically, while a digital signature specifically involves the use of a digital certificate to authenticate the eSign user.

3. How does an electronic signature work?

An electronic signature is typically created using an eSign service provider or application. It uses information technology to digitally verify and authenticate the signer during the eSign PDF document transaction.

4. Is an electronic signature legally valid?

Yes, in many jurisdictions, including under the Information Technology Act, an electronic signature is considered legally valid if it meets certain criteria for authentication and validity.

5. What are the benefits of using electronic signatures?

Using an electronic signature can facilitate paperless transactions, reduce the need for physical document handling, and provide a secure and efficient way to sign documents online.

- Story by Bruhadeeswaran R.

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A Step-by-Step Guide for Individuals to Register and Use Open Finance for Accessing Personal Loans

Kakoli — Fri, 28 Jun 2024 09:01:29 +0000

A Step-by-Step Guide for Individuals to Register and Use Open Finance for Accessing Personal Loans Kakoli Fri, 06/28/2024 - 09:01

Access to financial services has never been easier in the digital era, thanks to innovative solutions like Open Finance. This transformative technology is reshaping the financial landscape in India by providing seamless, secure, and inclusive financial services. Whether you're a lender hoping to reach a larger audience or a borrower looking for the finest credit deals, the Open Finance Stack powered by Protean provides unrivalled benefits.

This blog provides a complete overview of how Open Finance is revolutionising the Indian financial sector, as well as the process of registering and using it to access personal loans.

Steps to Register and Use Open Finance on Protean for Accessing Personal Loans

To register and use Protean Open Finance for personal loans, users need to follow the steps outlined below –

Step 1: Begin Your Lending Journey

To start your lending journey, open the Open Finance application and provide your phone number. You will receive a One-Time Password (OTP) on this number. Enter the OTP to verify your identity and proceed. Once verified, select the type of loan you need. On the next page, you must select the loan type (between Individual & Business loans).

Step 2: Provide Demographic Information

Next, you need to provide your individual demographic information. This includes details such as your name, address, date of birth, and other relevant personal information. Additionally, you will have to enter your account aggregator handle. This handle is crucial as it links your financial data with the service providers.

Step 3: Approve Data Sharing Consents

After providing your demographic information, the account aggregator will enable you to approve data sharing consents with Financial Information Users (FIUs). This step allows banks and Non-Banking Financial Companies (NBFCs) to access your banking data in real time and underwrite loans. Consent verification will be done via OTP, ensuring a secure process to fetch data from the account aggregator.

Step 4: Data Sharing and Underwriting

Once you have approved the data sharing consent, the lenders can use the data received through the account aggregator to underwrite loans. This step involves assessing your financial information, credit history, and other relevant data to determine your loan eligibility and terms.

Step 5: Receive Loan Offers

Based on the underwriting process, you will receive loan offers from different service providers. Review these offers carefully, comparing interest rates, repayment terms, and other conditions. Select the loan offer that best suits your requirements.

Step 6: Complete KYC Formalities

After selecting a loan offer, you will need to complete Know Your Customer (KYC) formalities. This process involves providing identification documents and verifying your identity. Additionally, you will need to provide details of your disbursement account, which is the account where the loan amount will be credited.

Step 7: Set Up E-Mandate for Repayment

To ensure effortless loan repayment, you will need to set up an e-mandate. An e-mandate authorises the lender to automatically debit the loan repayment amounts from your account on the due dates. This setup helps in maintaining timely repayments and avoiding any missed payments.

Step 8: E-Sign Agreement and Monitoring Consent

Following the e-mandate setup, you will need to e-sign the loan agreement. This step confirms your acceptance of the loan terms and conditions. Additionally, you will need to provide monitoring consent to the lender. This consent allows the lender to monitor your financial activities related to the loan, ensuring compliance with the agreement.

Step 9: Loan Application Summary

Once all the above steps are completed, you will receive a summary of your loan application. This summary includes details such as the payment plan, loan amount, disbursement information, and other relevant details. Review this summary carefully to ensure all information is accurate and as per your understanding.

Step 10: Request for Disbursement

After reviewing the loan application summary, you can request for the loan disbursement. Once approved, the loan amount will be credited to your disbursement account.

Tips for a Smooth Loan Application Process

While using Protean’s Open Finance platform to access personal loans, make sure to keep in mind these points -

Providing accurate demographic and financial information is crucial. Any discrepancies can delay the loan approval process.
Ensure that you have all necessary identification and financial documents readily available for the KYC process.
Take your time to compare different loan offers. Consider not just the interest rates but also the repayment terms and other conditions.
Before e-signing the loan agreement, thoroughly read and understand all terms and conditions to avoid any future misunderstandings.
A good credit score can significantly improve your chances of getting better loan offers. Make sure to manage your finances well and avoid any defaults.

How Does Open Finance Stack Help People?

Open Finance Protocols allows services through open networks of all demand aggregators such as digital portals, banking correspondents, digital DSAs, and online agents. With the backing of Protean’s data and ID verification services, it fosters a perfect delivery of financial products.

1. Empowering Digital Journeys

Open Finance Stack helps facilitate users’ digital journeys by providing access to numerous assisted banking service providers. This relationship assists in the expansion of the coverage of financial institutions and thus enables more people to access the services. By connecting to digital portals, banking correspondents, and online agents, the stack also guarantees that they can reach financial services in more than one way.

2. Providing the Finest Financial Product

Using Open Finance Stack, citizens can find the best offers in several connected financial services. These products include well-priced loan packages, all-around insurance solutions, gift cards, and sound investment products. This helps the user make a sound decision and select services from the platform that are suitable to his or her needs.

3. Functioning of Services on Open Networks

Open Finance Stack allows service on open networks as per the preferences of demand aggregators. This involves digital portals, banking correspondents, digital Direct Selling Agents (DSAs), and online agents. The stack ensures that the above services are delivered efficiently in an open network hence increasing the access to financial services.

How Will Protean Help?

Protean provides a single integration for working with all network participants. This means freedom from separate integrations and agreements with multiple lenders. Instead, users can benefit from a single integration for open credit networks, including ONDC and OCEN. This full-stack solution enables users to go live on the open finance network quickly and efficiently.

1. Single Integration for All Networks

Protean simplifies the process by offering a single integration for open credit networks. This means users don't need to manage multiple integrations or agreements with various lenders. Instead, they can access a unified system that connects them to a broad network of financial service providers. This streamlined process makes it easier for users to manage their financial interactions and ensures a smoother user experience.

2. Full Stack Solution for Going Live

Protean's full-stack solution enables users to go live on the open finance network quickly. This solution includes all the necessary tools and integrations needed to start offering financial services immediately. By providing a comprehensive package, Protean ensures that institutions can quickly and efficiently launch their financial services on the open network.

Benefits of Open Finance for Lenders

Protean's Open Finance adapter enables loan service providers to broadcast data to lenders using open protocols. This allows lenders to reach a wider audience and open new channels for their business. Additionally, it lowers the acquisition cost for lenders, making it more cost-effective to offer their services to a larger number of borrowers.

1. Reach a Wider Audience

Lenders using Protean's Open Finance adapter can reach a wider audience. This expanded reach allows them to connect with more potential borrowers, increasing their customer base. By accessing a broader network of users, lenders can grow their business and increase their market share.

2. New Channel for Business

Protean provides lenders with a new channel for their business. This new channel allows lenders to connect with borrowers in different ways, offering more flexibility in how they provide their services. By diversifying their channels, lenders can reach more customers and offer more tailored financial solutions.

3. Low Acquisition Cost

Protean's solutions help lenders reduce their acquisition costs. By streamlining the integration process and providing a unified platform, lenders can lower the cost of acquiring new customers. This cost savings can be passed on to borrowers in the form of more competitive loan products and services.

Benefits of Open Finance for Borrowers

For borrowers, Protean's Open Finance solution offers a wide range of options and low-cost loan products. Additionally, borrowers benefit from enhanced data security and privacy, ensuring that their financial information is protected throughout the lending process.

1. Availability of a Wide Range of Options

Borrowers using Protean's Open Finance solution have access to a wide range of loan products and financial services. This platform allows borrowers to choose the products that best meet their needs, ensuring that they can find the right financial solutions for their situation.

2. Low-Cost Loan Products

Protean's solutions help reduce the cost of loan products for borrowers. By lowering acquisition costs for lenders, Protean enables lenders to offer more competitive loan products. This means borrowers can access lower interest rates and better loan terms, making it more affordable to borrow money.

3. Enhanced Data Security and Privacy

Protean prioritises data security and privacy for borrowers. By using advanced data verification and security protocols, Protean ensures that borrowers' financial information is protected. This enhanced security gives borrowers peace of mind, knowing that their data is safe throughout the lending process.

Benefits for Agent Networks (Demand Side)

Protean's Open Finance solution also benefits agent networks by developing and deploying end-to-end user journeys. Protean's ready-made ONDC FS journeys can be integrated into existing platforms or apps for quick enablement of ONDC journeys for their users. This integration helps agent networks provide a seamless experience for their users, ensuring that they can access financial services easily and efficiently.

1. End-to-End User Journeys

Protean develops and deploys comprehensive user journeys for agent networks. These end-to-end journeys ensure that users have a smooth and seamless experience from start to finish. By providing a well-designed user journey, Protean helps agent networks deliver a better user experience.

2. Quick Integration with Existing Platforms

Protean's ready-made ONDC FS journeys can be quickly integrated into existing platforms or apps. This quick integration enables agent networks to offer ONDC journeys to their users without the need for extensive development work. By providing a fast and efficient integration process, Protean helps agent networks go live with their services quickly.

Conclusion

Protean's Open Finance Stack offers a comprehensive solution for delivering frictionless financial services in India. Protean simplifies the integration process and provides a full-stack solution that helps both lenders and agent networks access seamless financial services. With benefits for both lenders and borrowers, Protean's Open Finance Stack is transforming the financial landscape and making financial services more easily accessible than before to everyone.

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NPS vs PPF vs EPF: Why NPS Stands Out in Your Retirement Portfolio?

sonuk — Fri, 21 Jun 2024 12:24:06 +0000

NPS vs PPF vs EPF: Why NPS Stands Out in Your Retirement Portfolio? sonuk Fri, 06/21/2024 - 12:24

Planning for retirement holds significant importance in everyone's life. In India, you will find several investment products designed to help you save for your future. Among these options, the national pension scheme stands out as a smart choice for securing retirement corpus compared to other investments. In this guide we will walk you through the key aspects of NPS vs PPF vs EPF, helping you make an informed decision for a financially secure retirement.

What is the National Pension System?

The national pension scheme is a social security initiative led by the Central Government, offering a disciplined, long-term investment strategy for retirement. You can join this pension program if you work in the private, public, or unorganised sectors, excluding the armed forces.

NPS encourages consistent saving throughout your working years. You contribute regularly, building a retirement corpus. Upon reaching retirement age, you can access a lump sum and receive a regular monthly pension.

With its tax advantages, market-linked returns, and flexibility, NPS is an attractive choice for many investors. Before you start to invest in the scheme, it is crucial to evaluate your financial goals and risk tolerance. The NPS focuses on stability and adapting to changes in the investment landscape, making it a wise option for securing your golden years.

NPS vs Other Investments: Which is Better for Retirement?

The following will cover the comparison of NPS vs PPF vs EPF vs mutual funds in India:

1. NPS vs Mutual Funds

When you are deciding between NPS and mutual funds, it is essential to understand the differences between them. The following will help you make the right choice:

Purpose

NPS serves as a long-term retirement investment plan, aiming to offer you a steady income after retirement. On the other hand, mutual funds cater to diverse financial objectives such as wealth creation, retirement planning, and tax management, depending on the risk appetite of the borrower. They provide options suitable for various investment durations, from short to long-term.

Fund Management Costs

NPS has lower management costs at 0.1%, making it the most cost-effective managed fund for retirement. In contrast, asset management firms or mutual funds typically charge expense ratios ranging from 0.50% to 1.50%, which significantly exceeds the cost of NPS administration.

Tax Deduction

NPS, a government-sponsored pension fund, is primarily for pension planning and tax-saving under Section 80 CCD 1(B) up to ₹50,000 per year. Equity Mutual Funds, regulated by SEBI, serve specific financial goals and offer tax benefits under Section 80C up to ₹1.5 lakh per year, particularly ELSS schemes.

Exposure to Risk

NPS carries less risk than mutual funds because it is less exposed to equity-oriented mutual funds. However, your risk tolerance plays a significant role in this decision.

Flexibility of Withdrawals

NPS has restrictions on withdrawals until you have invested for at least ten years or reached 60. Mutual funds offer more flexibility in terms of withdrawals.

When choosing between NPS vs mutual funds you should consider your financial goals and risk tolerance which option is better suited for your retirement planning. If you prioritise long-term financial security, NPS is a good choice. On the other hand, if you have a higher risk tolerance and short-term goals, you may prefer mutual funds.

2. NPS vs PPF

When considering NPS vs PPF for your retirement, it is essential to weigh the following factors:

Risk and Safety

NPS carries some risk due to market fluctuations but it is tightly regulated by PFRDA (Pension Fund Regulatory and Development Authority), helping in minimising the fraud risk. PPF is backed by the government, and offers nearly risk-free returns, ensuring a secure retirement fund.

Investment Options

With PPF, you do not have the choice to decide how your money is invested. However, with NPS, you have the flexibility of choosing between various investment options, including fixed-income instruments, government securities funds, equity funds, and other government securities.

Liquidity

NPS offers slightly better liquidity with more opportunities for partial withdrawals. However, PPF allows partial withdrawals after a certain period and within specific limits, providing some flexibility for your retirement needs.

Returns

While PPF provides low but steady returns of around 7 to 8%, NPS can yield higher returns of up to 10 to 14% depending on the market. This potentially helps in boosting your retirement savings over time.

Taxes

Annuities from NPS are subject to taxes, but balances released at maturity are tax-free, enhancing your post-retirement income. PPF enjoys EEE status, ensuring tax exemption at all stages.

3. NPS vs EPF

When comparing NPS vs EPF for your retirement, consider the following differences:

Coverage

NPS covers both organised and unorganised sectors, offering retirement benefits to a broader range of workers. EPF, however, is exclusively for organised sector employees.

Asset Allocation Options

NPS provides flexibility with three asset allocation options: government bonds, corporate debt, and equities, allowing you to tailor your investments for retirement growth. EPF, on the other hand, primarily functions as a debt instrument with limited equity exposure.

Minimum Contribution

NPS requires a minimum annual contribution of six thousand rupees from employees, while EPF mandates a contribution of 12% of your salary.

Interest Rates

EPF offers a fixed annual interest rate determined by the Central Board of Trustees, currently at 8.65%. NPS is linked with the market and therefore offers returns based on market performance.

Tax Benefits

Both schemes offer tax benefits, but NPS provides more flexibility. While EPF contributions and interest qualify for tax deductions under Section 80C, NPS offers additional deductions under Section 80CCD(1B) and 80CCD(2) for contributions and withdrawals, enhancing your retirement savings.

Withdrawal Options

NPS mandates investing 40% of the accumulated corpus in an annuity or pension product, ensuring a steady income post-retirement. In contrast, EPF allows individuals to withdraw their entire capital at retirement, offering more flexibility in fund utilisation.

What are the Different Reasons for Choosing the NPS for Retirement?

Here are some crucial reasons highlighting why NPS stands out in India for retirement:

Stable Post-Retirement Income

NPS provides regular pension payments through annuities, ensuring financial security after retirement. Upon maturity, you will receive 60% of the corpus as a lump sum, while the remaining 40% is used to purchase annuities.

The annuity amount depends on factors like the duration of the policy and the purchase amount. Also, it is essential to keep in mind that different Annuity Service Providers (ASPs) have different minimum ages for annuity reception.

Professional Management

The Pension Fund Regulatory and Development Authority (PFRDA) oversees and regulates all aspects of the NPS, including the management of investments by authorised fund managers and annuity services providers.

These tight regulations ensure that your investments are professionally managed and that you receive the benefits you deserve. The NPS rules outline investment management and annuity payouts, addressing concerns about active management and safety.

Safe and Secure

In NPS, your money is secure for retirement. The Tier I NPS account prevents early withdrawals until you are 60, ensuring a focused approach to building your retirement fund. Partial withdrawals are allowed for critical situations like illness or important expenses. This design guarantees your savings contribute to a stable income stream during retirement.

Investment Choices

NPS offers flexibility through Active and Auto investment options. You can either customize asset allocation or opt for automated adjustments based on age, enhancing investment adaptability.

Cost-Effective

NPS includes minimal registration and maintenance fees and low transaction charges. Its tax efficiency, portability, and regulatory oversight further enhance its appeal as a retirement product.

Easily Accessible

With NPS, you can easily move your savings between jobs and places. This means you will not lose your hard-earned money when you switch jobs or relocate, ensuring a smooth transition, unlike some other pension schemes in India.

Tax Benefits

When you invest in NPS, you get tax benefits in three ways:

You can claim deductions on your contributions up to ₹1.5 lakh per year under Section 80CCD (1).
If your employer contributes to your NPS account up to 10% of your salary, that amount can also be deducted from your taxable income under Section 80CCD (2).
Additionally, you can claim an extra deduction of up to ₹50,000 per year under Section 80CCD (1B), introduced in 2015-16.

Conclusion

After the comparison of NPS vs PPF vs EPF options, you can see that choosing NPS is a smart move for securing your retirement. Investing in the national pension scheme can help you grow your wealth and ensure a comfortable retirement. By opting for NPS, you are taking proactive steps towards achieving financial stability during your retirement years.

Learn more about how to invest in NPS here.

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Cookie Policy

VipulMBF — Thu, 20 Jun 2024 07:18:18 +0000

Cookie Policy VipulMBF Thu, 06/20/2024 - 07:18

Date of last update: 14/06/2024

At Protean, we value your privacy. Regardless of whether you are a customer or a visitor to one of our many websites or applications, protecting your privacy is critical for us.

At Protean, we believe in being transparent about how we collect and use data related to you. In the spirit of transparency, this policy provides detailed information about how and when we use cookies. This cookie policy applies to any Protean product or service that links to this policy or incorporates it by reference.

This policy may be amended from time to time and the latest policy will be posted on this page.

By providing consent to the cookie policy on our websites via cookie preference and consent manager, you agree that we can place cookies on your device. Please be aware that some of our services will not function if your browser or device does not accept our cookies.

What are Cookies?

Cookies are small data files that are placed on your computer or mobile device when you visit a website. Cookies are widely used by website owners in order to make their websites work, or to work more efficiently, as well as to provide reporting information.

Cookies set by the website owner are called "first-party cookies." Cookies set by parties other than the website owner are called "third-party cookies."

Third-party cookies enable third-party features or functionality to be provided on or through the website (e.g., advertising, interactive content, and analytics). The parties that set these third- party cookies can recognize your computer both when it visits the website in question and also when it visits certain other websites.

Why do we use Cookies?

We use first- and third-party cookies for several reasons. Some cookies are required for technical reasons in order for our Website to operate, and we refer to these as "essential" or "strictly necessary" cookies. Other cookies also enable us to track and target the interests of our users to enhance the experience on our Online Properties. Third parties serve cookies through our Website for advertising, analytics, and other purposes.

How can I control cookies?

You have the right to decide whether to accept or reject cookies. You can exercise your cookie rights by setting your preferences in the Cookie Preference and Consent Manager. The Cookie Preference and Consent Manager allows you to select which categories of cookies you accept or reject. Essential/Strictly Necessary cookies cannot be rejected as they are necessary to provide you with services.

The Cookie Preference and Consent Manager can be found in the notification banner and on our website. If you choose to reject cookies, you may still use our website though your access to some functionality and areas of our website may be restricted. You may also set or amend your web browser controls to accept or refuse cookies.

The specific types of first- and third-party cookies served through our Website and the purposes they perform are described below-

The type of cookies used on most websites can generally be put into 1 of 4 categories: Strictly Necessary, Performance, Functionality and Targeting.

Strictly Necessary Cookies

These cookies are essential, as they enable you to move around the website and use its features. Without these cookies, services you've asked for can't be provided. These cookies don’t gather information about you that is used for marketing or remembering where you've been on the internet.

Performance Cookies

These cookies collect information about how you use a website, for example which pages you go to most often and if you get error messages from certain pages. These cookies don't gather information that identifies you. All information these cookies collect is anonymous and is only used to improve how a website works.

These cookies are not used to target you with online marketing. Without these cookies we can't learn how our website is performing and make relevant improvements that could better your browsing experience.

Functionality Cookies

These cookies allow a website to remember choices you make (such as your user name, language or the region you're in) and tailor the website to provide enhanced features and content for you.

Without these cookies, a website cannot remember choices you've previously made or personalize your browsing experience.

Targeting Cookies

These cookies are used to tailor marketing to you and your interests. They are also used to limit the number of times you see an advertisement as well as help measure the effectiveness of the advertising campaign. They remember that you have visited a website and this information may be shared with other organizations such as advertisers.

Without these cookies, online advertisements you encounter will be less relevant to you and your interests.

How can I control cookies on my browser?

You can refuse cookies through your web browser, these controls vary from browser to browser, and you should visit your browser's help menu for more information. The following is information about how to manage cookies on the most popular browsers:

Other tracking technologies, like web beacons/tracking pixels

Cookies are not the only way to recognize or track visitors to a website. We may use other, similar technologies from time to time, like web beacons (sometimes called "tracking pixels" or "clear gifs"). These are tiny graphics files that contain a unique identifier that enables us to recognize when someone has visited our Website or opened an email including them.

This allows us, for example, to monitor the traffic patterns of users from one page within a website to another, to deliver or communicate with cookies, to understand whether you have come to the website from an online advertisement displayed on a third- party website, to improve site performance, and to measure the success of email marketing campaigns.

In many instances, these technologies are reliant on cookies to function properly, and so declining cookies will impair their functioning.

Do you serve targeted advertising?

Third parties may serve cookies on your computer or mobile device to serve advertising through our Website.

These companies may use information about your visits to this and other websites in order to provide relevant advertisements about goods and services that you may be interested in. They may also employ technology that is used to measure the effectiveness of advertisements. They can accomplish this by using cookies or web beacons to collect information about your visits to this and other sites in order to provide relevant advertisements about goods and services of potential interest to you.

The information collected through this process does not enable us or them to identify your name, contact details, or other details that directly identify you unless you choose to provide these.

How often will we update this Cookie Policy?

We may update this Cookie Policy from time to time in order to reflect changes to the cookies we use or for other operational, legal, or regulatory reasons. Please therefore revisit this Cookie Policy regularly to stay informed about our use of cookies and related technologies.

The date at the top of this Cookie Policy indicates when it was last updated.

Where can I get further information?

If you have any questions about our use of cookies or other technologies, please email us at dpo@proteantech.in

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Cookie Policy

mohitkanwaria — Thu, 20 Jun 2024 06:28:42 +0000

Cookie Policy mohitkanwaria Thu, 06/20/2024 - 06:28

Date of last update: 14/06/2024

At Protean, we value your privacy. Regardless of whether you are a customer or a visitor to one of our many websites or applications, protecting your privacy is critical for us.

This policy may be amended from time to time and the latest policy will be posted on this page.

What are Cookies?

Cookies set by the website owner are called "first-party cookies." Cookies set by parties other than the website owner are called "third-party cookies."

Why do we use Cookies?

How can I control cookies?

The specific types of first- and third-party cookies served through our Website and the purposes they perform are described below-

The type of cookies used on most websites can generally be put into 1 of 4 categories: Strictly Necessary, Performance, Functionality and Targeting.

Strictly Necessary Cookies

Performance Cookies

Functionality Cookies

These cookies allow a website to remember choices you make (such as your user name, language or the region you're in) and tailor the website to provide enhanced features and content for you.

Without these cookies, a website cannot remember choices you've previously made or personalize your browsing experience.

Targeting Cookies

Without these cookies, online advertisements you encounter will be less relevant to you and your interests.

How can I control cookies on my browser?

Other tracking technologies, like web beacons/tracking pixels

In many instances, these technologies are reliant on cookies to function properly, and so declining cookies will impair their functioning.

Do you serve targeted advertising?

Third parties may serve cookies on your computer or mobile device to serve advertising through our Website.

The information collected through this process does not enable us or them to identify your name, contact details, or other details that directly identify you unless you choose to provide these.

How often will we update this Cookie Policy?

The date at the top of this Cookie Policy indicates when it was last updated.

Where can I get further information?

If you have any questions about our use of cookies or other technologies, please email us at dpo@proteantech.in

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Minor PAN Card: A Complete Guide for Application

sonuk — Fri, 14 Jun 2024 06:20:11 +0000

Minor PAN Card: A Complete Guide for Application sonuk Fri, 06/14/2024 - 06:20

Introduction: Understanding the PAN Card

PAN (Permanent Account Number) is a crucial document in India for managing financial activities and taxes. Contrary to popular belief, there is no age restriction for obtaining a PAN card. This includes minors (individuals below the age of 18 years), who can also apply for a PAN card, thanks to the initiatives by the government to simplify financial inclusiveness. This guide aims to provide a comprehensive overview of the process for minors to secure their PAN cards, highlighting its importance and detailing the application process.

Differences Between Minor and Major PAN Cards

One might wonder how a PAN card issued to a minor differs from that of an adult. Structurally, both cards are similar; however, a minor's PAN card does not bear the minor’s photograph or signature. The proof of address provided with the application will be that of the legal guardian, but the proof of identity and date of birth documentation must be specific to the minor.

Advantages of a Minor PAN Card

Having a PAN card can be significantly beneficial for a minor for several reasons:

It acts as a valid proof of date of birth.
It enables minors to be nominees for shares, properties, or financial assets.
It facilitates investments made in the name of the child.
It establishes a lasting financial identity from an early age.

Criteria and Mandatory Scenarios for a Minor PAN Card

While a PAN card for minors is not mandatory across all scenarios, it becomes essential under certain conditions:

If the minor is involved in financial transactions where they are under guardianship.
In cases where bequests or investments name minors as nominees.

Application Methods for a Minor PAN Card

Minors can apply for a PAN card through Protean's dedicated service page. The application process entails filling an online form which must be signed by a parent or guardian. Despite the minor’s PAN card not containing a photograph or signature, it holds the same number and is equally valid as an adult's PAN card.

Minors or their guardians can choose from two primary methods when applying for a PAN card:

1. Online Application

Visit the official website at www.protean-tinpan.com, and select the option to apply for a new PAN card.
Complete the application form online, upload the necessary documents (as per the specific requirements listed on https://www.protean-tinpan.com/services/pan/documents-required.html, and make the required payment).
Post payment, utilize Aadhaar authentication. The documents must then be forwarded to the below Protean office address:

Protean eGov Technologies Limited,
Income Tax PAN Services Unit,
4th floor, Sapphire Chambers, Baner Road,
Baner, Pune - 411045

A reference video can be found here for more assistance.

2. Offline Application

Locate a nearby TINFC/PSA office by visiting TIN Facility centre.
Complete the application process here with the required documents and the guidance of the staff at these centers.

Documents Required for Minor PAN Card Application

While applying, specific documentation needs to be provided, which include proofs of identity and address of the minor's parent or guardian as well as the minor's date of birth proof. For detailed information and a complete list, visit Protean-TIN PAN Document requirements.

Conclusion: Act Now and Apply

Awareness and understanding of the facility for minors to own a PAN card empower parents and guardians to prepare their wards for a secure financial future. Whether it’s for making them a nominee in your financial decisions or just starting their investment journey early — a minor PAN card is your go-to. Apply for it today through Protean’s Online Service and secure your child’s tomorrow.

Services After PAN Card Issuance

Protean also provides various services post issuance of PAN, such as online PAN verification and correction in PAN data, which can be crucial should there be any discrepancies or changes required in the PAN details.

FAQs Related to Minor PAN Card

What is a minor PAN Card?

The minor PAN Card is issued for individuals under the age of 18 and does not carry the holder's photograph or signature. It becomes a 'Major' PAN card once the individual turns 18 and updates their PAN details.

How can I apply for a Minor PAN Card?

Applications can be directly filled and submitted on the Protean website, with specific sections for minor applicants which need to be completed by the guardians.

What documents are required for updating a Minor PAN to a Major PAN?

Once the individual turns 18, they will need to provide their photograph and signature along with updated form information on the Protean or relevant tax service portals.

Is the Minor PAN Card valid after the individual turns 18?

Yes, the PAN is valid but needs to be updated to include updated photograph and signature data to reflect the new status of the individual as an adult.

For more detailed queries and instructions, please visit the official Protean FAQ section which provides extensive answers to common issues and procedures related to PAN Cards.

What is a PAN card and why do I need one?

A PAN (Permanent Account Number) card is a unique identification number issued by the Income Tax Department in India. It is essential for financial transactions such as tax filings, opening a bank account, and receiving taxable salary or professional fees.

How can I check the status of my PAN card application?

You can check your PAN card status online through the NSDL website. Visit here to enter your application number and track the current status.

Is it possible to download my PAN card online?

Yes, you can download an electronic version (e-PAN) from the official NSDL website. For more details on how to download, please refer to the e-PAN download section on

How do I link my PAN card with my Aadhaar card?

Linking your PAN with your Aadhaar card is a mandatory requirement for tax purposes. You can link these documents online through the official e-filing website of the Income Tax Department, and detailed instructions can be found under the PAN-Aadhaar link section.

What should I do if I need to reprint my PAN card?

If your PAN card is lost or damaged, you can apply for a reprint through the NSDL or UTIITSL portal.

How can I update or correct details on my PAN card?

Corrections or updates to your PAN details can be made through the NSDL website. This service is useful for correcting names, addresses, or other details on an existing PAN.

What is the procedure to obtain an instant e-PAN?

Instant e-PAN is available through the official portal of the Income Tax Department. You can apply online using your Aadhaar card, and complete guidelines are provided on the NSDL website linked from the Protean eGov Technologies' policies.

By following the guidelines provided in the links, users can ensure smooth management of their PAN related services. This information is always available for easy access and is regularly updated to reflect the latest procedural changes.

Story by Bruhadeeswaran R.

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A Complete Guide on NPS for Experienced Professionals

Kakoli — Wed, 12 Jun 2024 09:54:29 +0000

A Complete Guide on NPS for Experienced Professionals Kakoli Wed, 06/12/2024 - 09:54

The National Pension Scheme or NPS is open to all employees regardless of the sector they are working in. Besides, allowing one to save a retirement corpus, the NPS helps save 10% of the basic salary from tax deductions. Standing today, it is a voluntary scheme where you can select the pension fund managers of your choice. You can start with a minimum monthly contribution of only Rs. 500. Read on to learn in detail about NPS for experienced professionals.

Understanding NPS and Its Importance

The National Pension Scheme is a low-cost retirement plan through which you can secure regular income after retirement. It is available for private sector employees as well as for government workers/ staff aged between 18 and 65 years.

How NPS Works?

The NPS rules for experienced professionals vary across the type of account chosen. For instance, you can select between the Tier-1 or Tier-2 NPS accounts where enrollment under the first option is mandatory as you register as a subscriber.

There is no interest fixed for both accounts as the returns are linked to secondary market movements. However, the Tier-1 contributions are totally tax-free. You can maintain this account with a minimum annual contribution of Rs. 1000.

On receiving your contributions, the selected fund manager allocates the money among various asset classes. Depending on the performance you may expect compound interest returns ranging between 8% and 10%. To ensure the contributions manage the best interests of the subscribers, the PFRDA oversees the entire process.

You can even opt for more active involvement by not choosing the auto-choice option for an NPS account. Upon doing so, you are provided with the right to specify how much investment should go towards government securities, corporate bonds, and equity instruments.

What are the Tax Benefits Associated with NPS?

There are several benefits of NPS for experienced professionals that motivate them to invest in NPS. One such advantage is that they become eligible for income tax deductions of up to 10% of their salary. For this, their employer needs to mark that particular salary component as a business expense. This norm is applicable to all professionals as per Section 36(1) of the Income Tax Act.

How Does NPS Help in Securing a Monthly Pension?

For regular monthly payouts, you must subscribe to an NPS annuity plan by utilising at least 40% of the corpus accumulated. This decision needs to be taken at the time of maturity.

You must note that all the capital gains and contributions towards an NPS account are tax-free.

You can choose any of the PFRDA-approved annuity scheme providers to start the pension service. By doing so you can ensure immediate disbursements as pension and can avert the risk of re-investing.

Exploring the Different Aspects of NPS

The advantages of NPS for experienced professionals are immense as it secures excellent returns and serves as a crucial tax-saving instrument. Also, when you open a Tier-2 account, there is no such lock-in period. Most importantly, the historical returns are very satisfactory and have managed to beat inflation consistently.

What are the Types of NPS Accounts Available?

While you are exploring NPS for experienced professionals, you will primarily come across two different account types - Tie-1 and Tier-2. The first one calls for a minimum contribution of Rs. 500 at the time of account opening while the second account type requires a minimum initial deposit of Rs. 1000.

Any Indian who’s aged between 18 and 65 years can open an NPS Tier-1 account either online or offline. For a detailed account opening guide, please click here.

Online applications are processed instantly and your balance gets immediately reflected as you search entering the Permanent Retirement Account Number (PRAN). While the Tier-1 account offers tax benefits of up to Rs. 2 Lakhs in a year, it comes with a lock-in period where you cannot withdraw before 60 years.

On the other hand, the Tier-2 account (that can be initiated only by existing NPS subscribers) does not have any lock-in period. NPS subscribers can voluntarily add funds to this account to generate a substantial retirement corpus. Also, there are no such restrictions regarding asset allocation for Tier-2 accounts.

How Can One Calculate the Pension Amount Using an NPS Calculator?

Online NPS calculators are tools that consider multiple parameters like the investor's age, monthly contributions, investment strategy, etc. to give results. As a result, you get the potential NPS maturity amount.

Here you can see the generalised steps to use an online NPS calculator:

Step 1: Enter the monthly investment amount

Step 2: Pick a growth rate or select an investment strategy (moderate, conservative or aggressive)

Step 3: Put your age in the relevant field

Step 4: Click on ‘Calculate’ to get the final maturity amount along with the sum invested and the interest gained

Investing and Managing NPS Accounts

The NPS scheme is designed for systematic savings. You can access this facility from anywhere in India. For existing pension holders, a fresh application is necessary to register under this scheme.

Here we have broken down NPS for experienced professionals from the application process to withdrawal methods:

What are the Steps to Open an NPS Account for a Working Professional?

To open an NPS account please follow these steps:

Step 1: Visit the page of the National Pension System and click on ‘Apply Now’.

Step 2: Fetch the online registration form and enter the acknowledgement number and date.

Step 3: Enter the personal details and nomination details, and upload the signature, bank statement and passbook copy.

Step 4: Make the initial deposit (it should be at least Rs. 500)

Step 5: Confirm the details, enter the CAPTCHA code and click on ‘Submit’.

Step 6: Collect the 12-digit[8] PRAN for further use.

How to Effectively Manage and Monitor NPS Investments?

To manage and track the NPS balance you can follow this procedure:

Step 1: Navigate to the official website of the National Pension System.

Step 2: Enter the PRAN as a user ID and complete the login by inputting the password.

Step 3: Fill in the CAPTCHA.

Step 4: Click on ‘Holding Statement’ after navigating to the ‘Transaction Statement’ segment.

Step 5: Check the balance and particulars displayed on your screen.

What are the Options Available for NPS Withdrawals and Pension Disbursement?

Every NPS subscriber is allowed to withdraw a maximum of 3 times throughout the entire tenure of maintaining an account. After 3 years, you can withdraw up to 25% of the contribution. It is applicable for Tier-1 accounts as Tier-2 accounts do not have any such lock-in period.

After the maturity period, you can withdraw 60% of the corpus as a lump sum and opt to buy an annuity plan with the rest 40%. If you wish you can even increase the contribution towards annuity to get a higher pension amount each month.

Decision-Making and Future Planning with NPS

When you assess the tax benefits under Section 80C of the Income Tax Act, you straightaway realise the advantages of NPS for experienced professionals. Not only does it allow subscribers to save Rs. 1.5 Lakhs but also you may opt for an additional savings of Rs. 50,000 under Section 80CCD(1B).

Also, the NPS is very flexible in terms of capital allocation. You get complete control if you go for the active choice option. Thus, you yourself control future planning and the choice of annuity also depends on your decision.

How Does NPS Cater to Varying Needs of Working Professionals in Different Sectors?

For employees working in government offices, the NPS program is in no way different from corporate workers. Both get the freedom to invest in Tier-1 and Tier-2 accounts. After successful registration, the account holder can claim up to Rs. 2 Lakhs of tax deduction in a financial year. Also, they do not have to maintain any upper cap in terms of yearly investment.

All professionals can withdraw up to 25% of their investments after 3 years of maintaining the account. It can help them meet any emergency expenses or fulfil a lifelong aspiration like buying a house.

Therefore, depending on your goals you can start investing in NPS as the structure falls under the EEE category. Also, the investment opportunities are robust allowing you to flexibly determine the allocation patterns. Most importantly, they provide higher returns compared to PPFs and FDs.

What are the Long-term Benefits of Subscribing to NPS for Retirement Planning?

Some long-term benefits of NPS for experienced professionals include:

1. Attractive Returns

No other tax-saving instrument provides as much returns as NPS. Therefore, most people consider Tier-1 and Tier-2 NPS as significant wealth accumulation schemes.

2. Calculated Risk

Even if you go for the auto-choice NPS, the PFRDA ensures that your risk profile is taken care of. They do this by specifying the upper limit of contribution allocation towards equity assets. As you grow old the fund managers shield you against market volatility by minimising the equity exposure.

3. Increased Flexibility

You are allowed to contribute to your NPS account at any time of the year. Also, you can enjoy the flexibility of determining the portion of your fixed income you desire to invest in this scheme. All these features complement your long-term investment objectives.

Conclusion

Whether you pick NPS for experienced professionals or for new-age individuals, the scheme is advantageous to all age groups as it allows systematic wealth generation. Thus, starting from salaried professionals to tax-conscious investors, many prefer contributing to this scheme. The greatest relief is that it is backed by the Central Government. So you can leverage equity-generated returns without going through research-intensive strategies.

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