NRIs can subscribe to NPS

Q.  Which of the following statements is/are correct about National Pension System (NPS)?

1. It is defined-benefit pension system.
2. RBI has allowed non-resident Indians (NRIs) to subscribe to the National Pension System (NPS).
- Published on 02 Nov 15

a. Only 1
b. Only 2
c. Both
d. None

ANSWER: Only 2
 
- In 2004, the Government of India decided to move from a defined-benefit pension system to a defined-contribution pension system.

- Defined-benefit pension system: -
A defined benefit plan identifies the specific benefit that will be payable to you at retirement.

- Defined- contribution pension system: -
A defined contribution plan specifies how much money will go into a retirement plan today.

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