1. Maximum Age of Joining NPS Increased from 60 to 65 years: Finance Ministry.
Prime News, Nation (New Delhi), November 2:-The Ministry of Finance on Wednesday increased the maximum age of joining the National Pension System (NPS) from the existing 60 years to 65 years under NPS – Private Sector (i.e. all citizen and corporate model).
In accordance with several initiatives undertaken by the Pension Fund Regulatory and Development Authority (PFRDA) during the last few years, now any Indian citizen, resident or non-resident, between the ages of 60 – 65 years, can join NPS and continue up to the age of 70 years.
The subscriber joining NPS beyond the age of 60 years will have the same choices of pension fund and investment, as those individuals who subscribe to it before the age of 60 years.
Subscriber joining NPS after the age of 60 years will have an option of normal exit from NPS after completion of three years. In this case, the subscriber will be required to utilize at least 40 percent of the corpus for purchase of annuity and the remaining amount can be withdrawn in lump-sum.
In case of such subscriber willing to exit from NPS before completion of three years, he or she will be allowed to do so, but the subscriber will have to utilize atleast 80 percent of the corpus for purchase of annuity and the remaining can be withdrawn in lumpsum.
Moreover, in case of unfortunate death of the subscriber during his stay in NPS, the entire corpus will be paid to the nominee of the subscriber. With this increase of joining age, the subscribers who are willing to join NPS at the later stage of life will be able to avail the benefits of NPS.
2. SBI reduced interest rates for home, auto loans by 0.05 percent.
Largest public lender State Bank of India (SBI) today lowered home loan rate by 0.05 per cent to 8.30 per cent, the lowest in the industry.
It has also reduced the auto loan by a similar percentage point to 8.70 per cent.
The reduction in the retail loan rate by SBI is expected to prompt other lenders to go for a similar move. “With this reduction, SBI’s offering in home loan is the lowest in the market. The new rates will be effective November 1,” SBI said in a statement.
The reduction follows a cut in marginal cost of funds based lending rate (MCLR) two days ago, which came after a gap of 10 months. The bank had last cut the rate on January 1.
On the rate reduction, P K Gupta, SBI MD retail banking, said, “With this reduction in rates, we are offering lowest rates for most of our product offering in retail loans. Lower rates along with wide distribution network and use of digital technology to enhance customer experience is a perfect package for any retail loan customer.”
The effective interest rate for all eligible salaried customers will be 8.30 per cent per annum for loans up to Rs. 30 lakh. Rates have been reduced by 5 basis points (0.05 per cent) in all other loan brackets. “Over and above of 8.30 per cent rate, an eligible home loan customer can also avail of an interest subsidy of Rs. 2.67 lakh under the Pradhan Mantri Awas Yojana scheme,” the statement said.
For a car loan customer, interest ranges from 8.70 per cent to 9.20 per cent compared to the earlier 8.75-9.25 per cent. The exact rate depends on the amount of loan and the credit score of the individual, it said.