Question
Which pension fund scheme is open to all citizens of
India and provides a defined contribution to the account?Solution
The National Pension Scheme (NPS) is a pension fund scheme that is open to all citizens of India. It is a defined contribution scheme in which an individual contributes towards their retirement savings, which are invested in market-linked instruments. The scheme is regulated by the Pension Fund Regulatory and Development Authority (PFRDA) and offers both Tier I and Tier II accounts. Â
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