Changing nominee in NPS account? Here are the new nomination rules you should be aware of

By: |
April 15, 2021 5:12 PM

A fresh nomination will have to be made by the subscriber on his/her marriage. Any nomination made before such marriage will be deemed to be invalid.

National Pension System, NPS, additional tax benefit on NPS contribution, 80C benefit, income tax benefits, retirement corpus, same day NAV, SIP, Direct Remittance, D-RemitIf you also wish to change your NPS nomination, here are some rules you should be aware of;

Towards the end of last year, changes were brought in the nomination process of an NPS account. With the changes, the nomination process has become much easier. Now one will be able to make a change in the nomination online instead of submitting the nomination form physically. Through the Subscribers’ login credentials, PFRDA has also allowed the ‘e sign’ based online facility to change nominations.

Earlier, existing subscribers of NPS were required to submit S2 form (Request for change of Subscriber Master details) physically to the associated Nodal officers, corporates or Points of Presence (POPs) for updation, who wished to change their nomination.

If you also wish to change your NPS nomination, here are some rules you should be aware of;

  • The nominee or nominees under NPS will be entitled, to receive, to the exclusion of all other persons, all such money which has so remained unpaid, on the death of the subscriber.
  • The nomination shall be in favour of one or more persons belonging to the subscriber’s family if a subscriber has a family at the time of making a nomination.
  • Any nomination made by such a subscriber in favour of a person not belonging to his family will be considered invalid.
  • A fresh nomination will have to be made by the subscriber on his/her marriage. Any nomination made before such marriage will be deemed to be invalid.
  • If at the time of making a nomination the subscriber has no family, the nomination could be in favour of any person. However, if the subscriber later acquires a family, such nomination will be forthwith be deemed to be invalid and the subscriber will have to make a fresh nomination in favour of one or more persons belonging to his/her family.
  • If the child of a subscriber [or as the case may be, the child of a deceased son of the subscriber] has been adopted by another person, such a child shall be considered as excluded from the family of the subscriber.
  • If the nomination is wholly or partly in favour of a minor, the subscriber could appoint a major person of his/her family, to be the guardian of the minor nominee in the event of the subscriber predeceasing the nominee.
  • If there is no major person in the family, the subscriber could appoint any other person to be a guardian of the minor nominee.
  • A nomination made under the NPS may at any time be modified by a subscriber. If a subscriber by notice in writing to the designated intermediary for the purpose expresses her desire to exclude her husband from the family, the husband and his dependent parents shall no longer be deemed to be a part of the subscriber’s family for the purpose of this Scheme, unless the subscriber subsequently cancels in writing any such notice.

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