Question
What is the minimum contribution amount for a Tier II
account in the National Pension System (NPS)?Solution
The Tier II account in the National Pension System (NPS) is an optional investment account that allows subscribers to invest and withdraw funds as per their convenience. The minimum contribution amount for a Tier II account in NPS is Rs. 1000 per month. The Tier II account has no lock-in period, and subscribers can withdraw the funds anytime they want. The Tier II account does not offer any tax benefits, unlike the Tier I account. Therefore, option B is correct.
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