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NPS New Rules 2025

131.9K views · Sep 27, 2025 · 13:14 min · Watch on YouTube ↗
Takeaway

NPS becomes a serious index-fund rival with 100% equity option, 15-year lock-in, and multi-scheme/multi-PRAN flexibility.

Summary

  • PFRDA raises Tier-1 equity allocation cap from 75% to 100%, making NPS more attractive vs index funds for retirement
  • Lump-sum tax-free withdrawal eligibility window cut from 60 years to 15 years of contribution (PPF-like); a proposal to raise tax-free lumpsum portion from 60% to 80% is open for subscriber feedback
  • Unique identifier shifts from PRAN to PAN, allowing multiple PRANs across the 3 CRAs (Protean, KFinTech, CAMS) with different fund managers/portfolios in one account
  • Pension fund houses can now launch high-risk, moderate-risk and low-risk equity schemes plus niche schemes targeting IT employees, gig workers, self-employed, corporates
  • Expense ratio cap raised to 30 bps allowing more product variety; aimed at countering NPS outflows after new tax regime adoption
NPSretirementPFRDA
Original description
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👀 discover this Government-backed scheme NPS – National Pension System, that’s becoming even more powerful with the new rules effective from October 1, 2025.
From this date, non-government NPS subscribers can invest up to 100% in equity under the new Multiple Scheme Framework (MSF). This means you get flexibility, higher growth potential, and diversification—all in a single PRAN account linked to your PAN.

Highlights of the New NPS Rules (Oct 1, 2025):
 100% Equity Investment option in High-Risk Variant 💹
 Multiple Schemes under one PRAN via PAN 🌐
 Moderate- & High-Risk variants for different investors
 Benchmarking against market indices for transparency 📊
 Greater flexibility for salaried, self-employed & professionals
👉 Whether you are 25, 40, or nearing retirement, NPS now gives you more control, transparency, and growth potential
✅ Watch this video till the end to understand why NPS with 100% equity exposure could beat index funds in the long run.

#NPS #PFRDA #RetirementPlanning #NewRules2025 #NationalPensionSystem

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Thanks for watching..
Team Money Purse

What is in for you?
00:00 Introduction
01:23 The Change in Equity Exposure in Tier 1
02:10 The Change in Withdrawal
03:57 The Change in No. of PRANS
04:58 The Change in the Schemes
06:45 The Change in Expense
07:57 The Change in Entry & Exit Age
09:04 The Proposed change in NPS Vatsalya
09:30 The Schemes of NPS & Its Performance
10:14 The Increase in End Corpus with The Changes