About this banking scheme
The scheme aims to provide old age protection and social security to workers in the unorganized sector. It offers an assured monthly pension of Rs. 3,000/- after age sixty, with matching government contributions, to benefit small shopkeepers, retail traders, and self-employed persons.
The scheme "National Pension Scheme For Traders And Self-Employed Persons" was launched by the Ministry of Labour and Employment, Government of India. The scheme aims to provide old age protection and social security to small-scale traders, retailers, and self-employed individuals. The scheme provides a voluntary and contributory pension under which the beneficiary receives a minimum assured monthly pension of Rs. 3,000/- after attaining the age of sixty years, along with matching contributions from the Government of India. The applicant must make monthly contributions ranging between Rs. 55/- and Rs. 200/- per month till they attain the age of 60 years.
Benefits at a glance
| Scheme name | National Pension Scheme For Traders And Self Employed Persons (NPS-TSEP) |
|---|---|
| Launched by | Ministry Of Labour and Employment |
| Launch year | 2019 |
| Benefit type | Cash (money paid to your bank account) |
| Category | Banking |
| Level / State | Central · All India |
| Official portal | maandhan.in (link at the end of this page) |
Key facts
| Scheme type | Central Sector Scheme |
|---|---|
| Implementing agency | Common Service Centers |
| Scheme for | Individual |
| Application mode | Online - via CSC / Online |
| Last date | Ongoing (no last date notified) |
| DBT (direct bank transfer) | Yes |
Who can apply (quick check)
- 👤All genders
- 🎂Age 18 to 40 years
- 📝Online - via CSC / Online
Quick check from official data. Full conditions are in the Eligibility section.
What you receive
1. Pension Benefit
- Each eligible subscriber under this scheme shall receive an assured minimum monthly pension of Rs. 3,000/- after attaining the age of sixty years.
- The Government of India will make a matching contribution into the subscriber's pension account every month as a subsidy.
2. Family Pension on Death of Beneficiary
During the receipt of the pension, if an eligible beneficiary dies, the spouse shall be entitled to receive fifty per cent of the pension received by such beneficiary as a family pension, which is applicable only to the spouse.
3. Provisions for Permanent Disablement Before Age of Sixty
- If an eligible beneficiary has given regular contributions and becomes permanently disabled before attaining the age of sixty years, the spouse shall be entitled to continue with the scheme by payment of regular contributions.
- In case of permanent disablement where the spouse does not continue, they can exit the scheme by receiving the share of contribution deposited by the subscriber, with interest as actually earned thereon by the Pension Fund or the savings bank interest rate, whichever is higher.
4. Exit Before Completion of Ten Years
In case an eligible beneficiary exits this scheme within a period of less than ten years from the date of joining, the share of contribution by them only will be returned with the savings bank rate of interest payable thereon.
5. Exit After Ten Years but Before Age of Sixty
If an eligible beneficiary exits after completion of a period of ten years or more from the date of joining but before the age of sixty years, their share of contribution only shall be returned along with accumulated interest thereon as actually earned by the Pension Fund or the savings bank interest rate, whichever is higher.
6. Death of Beneficiary During the Contribution Period
- If an eligible beneficiary has given regular contributions and dies due to any cause, the spouse shall be entitled to continue with the scheme by payment of regular contributions.
- If the spouse does not wish to continue after the beneficiary's death, they can exit by receiving the share of contribution paid by the beneficiary along with accumulated interest, as actually earned by the Pension Fund or at the savings bank interest rate, whichever is higher.
7. Corpus Reversion After Death of Both Beneficiary and Spouse
After the death of the beneficiary and his or her spouse, the corpus shall be credited back to the fund.
Who qualifies
- The applicant must be a Laghu Vyapari, self-employed person, shop owner, retail trader, rice mill owner, oil mill owner, workshop owner, commission agent, real estate broker, small hotel owner, or restaurant owner.
- The applicant must be between 18 and 40 years of age.
- The applicant must have an annual turnover that does not exceed Rs. 1,50,00,000/-.
- The applicant must possess a savings bank account in their name.
- The applicant must possess an Aadhaar Card or Aadhaar Number.
Who is not eligible
- The applicant must not be covered under any National Pension Scheme contributed by the Central Government.
- The applicant must not be a member of the Employees’ Provident Fund Organisation (EPFO) under the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952.
- The applicant must not be covered under the Employees’ State Insurance Corporation (ESIC) Scheme under the Employees’ State Insurance Act, 1948.
- The applicant must not be an income-tax payer or income-tax assessee.
- The applicant must not be enrolled under the Pradhan Mantri Shram Yogi Maandhan Yojana administered by the Ministry of Labour & Employment.
- The applicant must not be enrolled under the Pradhan Mantri Kisan Maandhan Yojana administered by the Ministry of Agriculture & Farmers Welfare.
Papers to keep ready
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Registration walkthrough
Online - via CSC
Registration Process
Step 1: The interested eligible person must visit their nearest Common Service Centre (CSC) to initiate the registration process offline. The applicant must carry prerequisites such as their Aadhaar Card and evidence of their bank account.
Step 2: The Village Level Entrepreneur (VLE) at the center will key in the Aadhaar number, name of the beneficiary, and date of birth as printed on the Aadhaar card. This step is necessary to authenticate the identity of the applicant in the system.
Step 3: The VLE will complete the online registration by filling up essential details in the enrollment system. These details include the applicant's bank account information, mobile number, email address, GSTIN, annual turnover income, spouse details, and nominee details.
Step 4: A self-certification process for the eligibility conditions will be completed by the applicant. Following this, the system will automatically calculate the monthly contribution amount payable according to the age of the beneficiary.
Application and Payment Process
Step 5: The enrolled beneficiary will pay the first subscription amount in cash directly to the VLE. This initial contribution payment activates the subscription to the pension scheme.
Step 6: An enrollment cum auto-debit mandate form will be generated and printed by the system. This mandate form must be signed by the beneficiary, after which the VLE will scan the document and upload it securely into the system.
Step 7: A unique Vyapari Pension Account Number (VPAN) will be generated for the applicant to maintain their account records. Finally, a physical Vyapari Card will be printed and handed over to the beneficiary.
Online
- Eligible individuals who wish to apply themselves can do so by navigating to the official online enrollment portal.
- They must complete the self-enrollment online procedure by providing the required information and setting up their account without visiting a physical center.
Important dates
| Launch / start | 01 Jan 2019 |
|---|
Frequently asked questions
If I am currently receiving benefits or am registered under the Employees’ State Insurance Corporation framework due to my previous employment, am I still allowed to apply for this retirement initiative?
No, individuals covered under the Employees’ State Insurance Corporation Scheme as per the Employees’ State Insurance Act, 1948, are explicitly excluded from participating.
What is the maximum allowable annual business revenue that my small retail shop or establishment can generate for me to successfully qualify and register for these old age benefits?
Your annual turnover must not exceed Rs. 1,50,00,000/- to remain eligible for enrollment.
Which specific national identity document must I possess and provide during the application stage to authenticate my personal details and secure my enrollment in this contributory pension initiative?
You must possess a valid Aadhaar card or Aadhaar number to authenticate your identity.
As a farmer who has already secured my future by registering for the Pradhan Mantri Kisan Maandhan Yojana administered by the Ministry of Agriculture and Farmers Welfare, can I simultaneously participate here?
No, beneficiaries already enrolled in the Pradhan Mantri Kisan Maandhan Yojana administered by the Ministry of Agriculture and Farmers Welfare are strictly ineligible.
I have just started my small self-owned business and want to secure my future early; what is the specific minimum age requirement that I must meet to initiate my monthly contributions?
You must be at least 18 years of age at the time of entry to begin your voluntary contributions.
When determining my eligibility based on the business revenue generated over the year, how exactly will the government verify my financial limits, and do I need to submit extensive audit reports?
Your annual turnover limit is verified purely based on your self-declaration, so extensive audit reports are not required during the application process.
Because my annual earnings have crossed the taxable threshold, I have been filing my taxes regularly with the government; does this financial status affect my eligibility to participate and receive the monthly payout?
Yes, any individual who is currently an income-tax payer or an income-tax assessee is disqualified from joining.
Which exact categories of self-employed professionals, retail business operators, or small establishment owners are formally recognized and permitted to secure their old age through this targeted social security initiative?
Eligible occupations include self-employed shop owners, retail traders, rice or oil mill owners, workshop owners, commission agents, real estate brokers, and small hotel or restaurant owners.
Considering the varied scales of small businesses, at what specific financial threshold of annual business revenue does it become completely mandatory for an applicant to possess a Goods and Services Tax Identification Number?
Providing a Goods and Services Tax Identification Number is only required if your annual turnover exceeds Rs. 40,00,000/-.
To ensure smooth financial transactions and the proper crediting of the government's matching subsidy every month, what kind of financial account must I formally hold in my own name?
You are required to possess a savings bank account or a Jan Dhan bank account with an Indian Financial System Code registered in your name.
Since I am nearing the latter half of my professional working life as a small shopkeeper, what is the upper age limit by which I must successfully register before I lose the opportunity?
The maximum entry age for enrollment is 40 years, meaning you must complete your registration before crossing this age limit.
I am a daily wage labourer currently contributing to the Pradhan Mantri Shram Yogi Maandhan Yojana managed by the Ministry of Labour and Employment; am I permitted to hold dual memberships to maximize benefits?
No, individuals who are already enrolled under the Pradhan Mantri Shram Yogi Maandhan Yojana administered by the Ministry of Labour and Employment cannot apply.
As someone whose previous corporate employer actively deducted and contributed to my retirement savings under the Employees’ Provident Fund Organisation, am I currently eligible to transition into this specialized support system?
You are not eligible if you are a member of the Employees’ Provident Fund Organisation or covered under the Employees’ Provident Fund Scheme.
If I am already a beneficiary holding an active account under any other national pension program that receives matched contributions directly from the Central Government, can I still apply for this specific initiative?
No, you are disqualified if you are already covered under any other National Pension Scheme contributed to by the Central Government.
Submit your application yourself on the official portal; it costs nothing. Treat anyone demanding money to "get you approved" as a scam.
tsmpb.in is not affiliated with any government department. Apply only on the official portal and never pay anyone for an application.
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