NISM Series XVII · Chapter 6: Retirement Planning Products: Other Investment Products

L1 · Foundation

Foundation — The mandatory retirement benefits every covered employee has

The EPF & MP Act, 1952 and the three schemes it requires; the Employee Provident Fund with its contribution rates and the Rs 2.5 lakh / Rs 5 lakh interest taxation threshold; the Employee Pension Scheme and the 8.33 percent diversion; the Employee Deposit-Linked Insurance Scheme; gratuity under the Payment of Gratuity Act, 1972 with its five-year rule and the three-way exemption test; superannuation benefits and the Rs 7.50 lakh aggregate cap that superseded the old 27 percent rule; and the NPS and UPS for government employees.

22 min read · Worth 8% of the paper · Written from pages 182–209 of the official NISM workbook · Updated 18 September 2026

The mandatory retirement benefit schemes

1. The governing law

Three schemes flow from one Act:

Employee Provident Fund Scheme
Employee Pension Scheme
Employee Deposit-Linked Insurance Scheme

Two further mandatory benefits — gratuity and, for government employees, the NPS — come from separate statutes, and superannuation is voluntary on the employer's part. Keeping the sources straight is worth doing early.

2. Employee Provident Fund Scheme

2.1 Contributions

That one-way flexibility is what makes the Voluntary Provident Fund possible — the employee may go higher, but no matching contribution follows.

"Contributions are CREDITED TO INDIVIDUAL EMPLOYEE ACCOUNTS. EACH YEAR THE GOVERNMENT DECLARES THE RATE OF INTEREST applicable to the scheme."

The annual statement shows "the OPENING BALANCE, CONTRIBUTIONS during the year, INTEREST CREDITED at the end of the period, WITHDRAWALS if any and CLOSING BALANCE", and is sent to each account holder through his/her employer.

2.2 Withdrawal

⚠️ "PARTIAL WITHDRAWALS are allowed to members for SPECIFIED PURPOSES, INCLUDING HOUSING, EDUCATION, HEALTH CONSIDERATIONS AND MARRIAGE."

"The balance is PAID OUT AS A LUMP SUM ON RETIREMENT, or TOTAL AND PERMANENT DISABLEMENT or DEATH IN SERVICE or EARLY RETIREMENT."

2.3 Taxation — four separate rules

Rule	Detail
Deduction	Under the old regime, contributions by employer and employee are eligible under section 123 read with Schedule XV of the Income-tax Act, 2025 (corresponding to section 80C**), up to the prescribed limit
⚠️ Interest on excess contribution	⚠️ "The interest credited on THE EMPLOYEE'S CONTRIBUTION IN EXCESS OF Rs 2,50,000 (Rs 5,00,000 IN CASE THERE IS NO CONTRIBUTION FROM THE EMPLOYER to the provident fund account) IN A YEAR IS TAXABLE FROM 1 APRIL 2021"
⚠️ The aggregate employer cap	⚠️ "Contributions made by THE EMPLOYER in a RECOGNIZED PROVIDENT FUND, NATIONAL PENSION SCHEME of the Central Government and in an APPROVED SUPERANNUATION FUND (COMBINED TOGETHER) IN EXCESS OF Rs 7,50,000 — AND EARNINGS ON SUCH CONTRIBUTIONS — IS TREATED AND TAXED AS PERQUISITE"
Maturity	"Accumulated funds received AT THE TIME OF RETIREMENT ARE ALSO EXEMPT FROM TAX"

Note that the Rs 2.5 lakh / Rs 5 lakh threshold applies to the employee's own contribution, while the Rs 7.50 lakh cap applies to the employer's contributions across three schemes together. Two different limits, two different contributors — a favourite examination confusion.

3. Employee Pension Scheme

Read that carefully. The money does not come from a fresh contribution. It is carved out of the employer's existing 12 percent — so of the employer's 12 percent, 8.33 percent goes to the pension scheme and the remainder stays in the provident fund.

⚠️ "The scheme provides PENSIONS FOR LIFE TO MEMBERS OR THEIR FAMILY UPON RETIREMENT AT THE AGE OF 58."

⚠️ "THE CENTRAL GOVERNMENT ALSO CONTRIBUTES 1.16 PERCENT OF THE WAGES TO THIS SCHEME."

On the higher pension question: ⚠️ "Eligible members MAY BE SUBJECT TO ADDITIONAL OPTIONS OR CONDITIONS RELATING TO HIGHER PENSION UNDER EPS-95, based on applicable EPFO CIRCULARS AND JUDICIAL DIRECTIONS. ADVISERS SHOULD REFER TO THE LATEST EPFO GUIDANCE BEFORE ADVISING ON SUCH CASES."

That instruction is aimed directly at you as an adviser. The workbook does not state a settled position because the position has not settled — check the current EPFO circular before advising.

4. Employee Deposit-Linked Insurance Scheme

"The benefit provided is called the ASSURANCE BENEFIT. ON THE DEATH OF THE MEMBER WHILE IN SERVICE, the nominee or any other person entitled to receive the provident fund benefits will, IN ADDITION TO THE PROVIDENT FUND, RECEIVE THE ASSURANCE BENEFIT."

Two features to hold: it is employer-funded only, and the benefit is in addition to the provident fund balance, not instead of it. It also pays only on death while in service.

5. Gratuity

Governed by the PAYMENT OF GRATUITY ACT, 1972.

Section 4(3) of the Act deals with the limit on gratuity payable.

5.1 Taxation

GOVERNMENT EMPLOYEES: ⚠️ "All retirement and gratuity benefits received is EXEMPT FROM TAX u/s 10(10)." Fully exempt, no computation needed.

NON-GOVERNMENT EMPLOYEES: ⚠️ "Any gratuity received is EXEMPT FROM TAX TO THE EXTENT OF THE LEAST OF THE FOLLOWING:"

a) HALF MONTH'S AVERAGE SALARY FOR EACH COMPLETED YEAR OF SERVICE
b) Rs 20,00,000
c) ACTUAL GRATUITY RECEIVED

⚠️ "The exemption is, however, NOT AVAILABLE FOR PAYMENT OF GRATUITY WHEN THE EMPLOYEE IS STILL IN SERVICE."

Two numbers, two populations: Rs 20 lakh is the income-tax exemption ceiling for non-government employees; Rs 25 lakh is the service-rules ceiling for Central Government employees since 1 January 2024.

6. Superannuation benefit

The governance requirement: ⚠️ "The company HAS TO APPOINT TRUSTEES to administer the scheme and GET THE SCHEME APPROVED BY THE COMMISSIONER OF INCOME TAX."

Two ways to offer it:

⚠️ "Through the CONSTITUTION OF A TRUST FUND where FUND MANAGERS ARE APPOINTED BY THE TRUSTEES to manage the fund"
⚠️ "Through INVESTMENT IN A SUPERANNUATION SCHEME FROM A LIFE INSURANCE COMPANY"

6.1 Commutation

⚠️ "APART FROM LIC, ALL OTHER LIFE INSURANCE COMPANIES ALLOW ITS CUSTOMERS TO PURCHASE ANNUITY FROM ANY ANNUITY PROVIDER."

6.2 The old rule and the new — an important supersession

The historical position: ⚠️ "Income Tax rules limited the EMPLOYER'S TAX-EXEMPT CONTRIBUTION to the PF and superannuation fund, WHETHER INDIVIDUALLY OR COMBINED, TO 27 PERCENT OF THE EMPLOYEE'S EARNINGS (12 PERCENT to a recognised PF and UP TO 15 PERCENT, SUBJECT TO Rs 1,50,000 A YEAR, to an approved superannuation fund), WITH NO ABSOLUTE RUPEE CEILING."

Note the two dates: the cap applies from FY 2020-21; taxing the accretion on the excess began from FY 2021-22.

"Payments received at the time of RETIREMENT OR DEATH from an approved Superannuation Fund IS EXEMPT FROM TAX."

7. NPS and UPS for government employees

"ALL CENTRAL GOVERNMENT EMPLOYEES (EXCEPT ARMED FORCES) AND CENTRAL AUTONOMOUS BODIES WHO JOINED SERVICE ON OR AFTER JANUARY 1, 2004, ARE ENROLLED INTO THE NPS, WHICH IS A DEFINED CONTRIBUTION PENSION PLAN."

⚠️ "Every month 10 PERCENT OF SALARY (BASIC + DA) will be contributed BY THE EMPLOYEE and 14 PERCENT OF SALARY BY THE GOVERNMENT."

7.1 The Unified Pension Scheme option

Element	UPS	Standard NPS
Employee	⚠️ 10% of Basic + DA	10% of Basic + DA
Government to individual corpus	⚠️ A matching 10%	⚠️ 14%
Government to pooled corpus	⚠️ A further 8.5%	—
What is promised	⚠️ "An ASSURED PAYOUT at retirement — broadly ONE-HALF OF THE AVERAGE OF THE LAST TWELVE MONTHS' BASIC PAY FOR FULL QUALIFYING SERVICE, PROPORTIONATELY REDUCED FOR SHORTER SERVICE"	No defined benefit

⚠️ "An employee WHO DOES NOT EXERCISE THE UPS OPTION REMAINS UNDER the standard 10-percent-employee-plus-14-percent-government NPS. FURTHERMORE, A ONE-TIME SWITCH FROM UPS TO NPS IS ALSO ALLOWED."

The trade the UPS offers is clear once the numbers are set side by side. The employee gives up four percentage points of direct government contribution to his own corpus (10% instead of 14%) and receives in exchange an assured payout rather than a market-linked outcome — with the 8.5% pooled contribution funding that assurance collectively.

8. Why voluntary products exist at all

"There are products available that individuals can VOLUNTARILY SUBSCRIBE TO CREATE THEIR RETIREMENT CORPUS AND TO AUGMENT EXISTING BENEFITS."

8.1 The organising principle for the rest of the chapter

"It is important to ALIGN THE NEED OF THE INVESTOR FROM THE INVESTMENT TO THE FEATURES OF THE PRODUCT. Typically, the investor's need is expressed in terms of THE RISK AND RETURN PREFERENCES, THEIR NEED FOR LIQUIDITY AND THE INVESTMENT HORIZON."

Stage	What the products must do
⚠️ ACCUMULATION	"There is an ADEQUATELY LONG INVESTMENT HORIZON WHICH ALLOWS INVESTORS TO TAKE HIGHER RISK FOR BETTER RETURNS"
⚠️ PRE-RETIREMENT	"The corpus has to be SOON USED to generate the income required... retirement investments are MOVED TO INVESTMENTS WITH LOW VOLATILITY so that there is REDUCED RISK OF DEPRECIATION IN THE VALUE OF THE CORPUS accumulated over time"
⚠️ DISTRIBUTION	"The products should be PRIMARILY INCOME-ORIENTED WITH LOW VOLATILITY"

Every product in the rest of this chapter is placed in one of these two lists — accumulation or distribution — and the reasoning is always the same: does it compound quietly, or does it pay out regularly?

Think of it like this

The employer pays a fixed share of the milk, but you may add your own

Imagine a housing society where the committee pays for one litre of milk per family each day. A family that wants two litres may buy the second one — but the committee will not pay for it. Its share was fixed the moment the rule was written.

The EPF works exactly this way: ⚠️ EMPLOYEES CAN CONTRIBUTE OVER AND ABOVE THE STATUTORY RATE of 12 percent/10 percent as applicable. HOWEVER, EMPLOYER'S CONTRIBUTION IS FIXED AT 12 PERCENT/10 PERCENT.

That one asymmetry is the entire basis of the Voluntary Provident Fund, and the workbook says so plainly: there will be NO EMPLOYER CONTRIBUTION TO MATCH any contribution made by the employee under the VPF.

So the VPF is not a bad product — it earns the same government-declared rate, carries the same low risk, and can go up to 100 percent of basic salary. But an employee who raises his contribution expecting the employer to follow has misunderstood the design.

And there is a tax limit attached: interest on the employee's own contribution above Rs 2,50,000 a year is taxable (Rs 5,00,000 where the employer makes no contribution at all, as in a General Provident Fund account).

The pension that comes out of the same pocket

When a household's monthly budget sets aside Rs 12,000 for savings and then diverts Rs 8,330 of it to an insurance premium, the family has not started saving more. It has re-labelled part of what it was already saving.

The Employee Pension Scheme works on the same principle, and this is the detail candidates miss: ⚠️ 8.33 PERCENT (SUBJECT TO LIMITS) FROM THE EMPLOYER'S CONTRIBUTION TO THE EMPLOYEE PROVIDENT FUND IS DIVERTED TO THE EPS.

Diverted — not added. Of the employer's 12 percent, a slice goes to fund a lifetime pension and the rest stays in the provident fund building a lump sum.

The one genuinely new money in the scheme comes from outside: ⚠️ THE CENTRAL GOVERNMENT ALSO CONTRIBUTES 1.16 PERCENT OF THE WAGES.

And unlike the NPS, this pension is not market-linked: the EPS is run by the EPFO and is GUARANTEED BY THE GOVERNMENT, providing pensions for life to members or their family upon retirement AT THE AGE OF 58.

Note that age — 58, not 60. It differs from almost every other retirement age in this workbook.

Three measuring jars, and you get the smallest

A cooperative store offers a discount described three ways: ten rupees per kilo, a maximum of two hundred rupees, or the actual amount you spent. Whichever of the three comes out smallest is what you actually receive.

The gratuity exemption for a non-government employee works precisely like that. It is exempt to the extent of THE LEAST OF THE FOLLOWING:

Half month's average salary for each completed year of service
Rs 20,00,000
Actual gratuity received

Three jars, and the smallest one wins. An employee whose formula-based entitlement is Rs 26 lakh and who actually receives Rs 24 lakh is still exempt only up to Rs 20 lakh — the statutory ceiling being the smallest of the three.

⚠️ A government employee needs none of this arithmetic: all retirement and gratuity benefits received is EXEMPT FROM TAX u/s 10(10).

And do not confuse two ceilings that sound alike. Rs 20 lakh is the income-tax exemption limit for non-government employees. Rs 25 lakh, with effect from 1 January 2024, is the gratuity ceiling under Central Government service rules — a different rule for a different population.

A percentage cap and a rupee cap are not the same fence

A landlord who caps rent at "ten percent of your income" charges a wealthy tenant far more than a poor one. A landlord who caps it at "Rs 20,000 a month" charges both the same. Change from one basis to the other and the person most affected is the one earning the most.

That is exactly what happened to superannuation. The old rule was a percentage cap: the employer's tax-exempt contribution to PF and superannuation combined was 27 PERCENT OF THE EMPLOYEE'S EARNINGS — 12 percent to a recognised PF and up to 15 percent (subject to Rs 1,50,000 a year) to superannuation — ⚠️ WITH NO ABSOLUTE RUPEE CEILING.

⚠️ This has since been superseded. From FY 2020-21, employer contributions to recognised provident fund, approved superannuation fund and NPS taken together are capped at an absolute Rs 7,50,000 a year, and the excess — plus the annual accretion on that excess from FY 2021-22 — is taxed as a perquisite in the employee's hands.

A percentage cap never binds; a rupee cap binds harder as salaries rise. This is why the change mattered most to senior, highly paid employees, whose 27 percent had previously been unlimited in absolute terms.

Trading four percent for a promise

A farmer is offered two deals for his crop. In the first, the buyer pays whatever the mandi price turns out to be on delivery day. In the second, the buyer pays a guaranteed price fixed in advance — but takes a small cut for carrying the risk. Neither is obviously better; it depends on how much uncertainty the farmer can carry.

That is the UPS choice, and the numbers make the trade visible:

	Standard NPS	UPS
Employee	10% of Basic + DA	10% of Basic + DA
Government to your own corpus	⚠️ 14%	⚠️ 10%
Government to a pooled corpus	—	⚠️ 8.5%
What you get	Whatever the market delivers	⚠️ An assured payout — broadly half the average of the last twelve months' basic pay

The employee gives up four percentage points flowing into his own account and gains an assurance. The 8.5 percent to the pool is what funds that assurance collectively.

⚠️ Note that both directions stay open: the UPS is a one-time option from 1 April 2025, and a one-time switch from UPS to NPS is also allowed.

Two different jobs need two different tools

A hammer and a screwdriver are both good tools, and neither is a substitute for the other. Ask which is "better" and the only sensible reply is: better for what?

The whole second half of this chapter is built on that question. Every voluntary product is sorted into one of two lists, and the sorting rule is simple — does it quietly compound, or does it pay out regularly?

⚠️ ACCUMULATION demands an adequately long investment horizon which allows investors to take higher risk for better returns. Its products are growth-oriented — equity, real estate, gold, plus debt instruments where the investor has the discipline to reinvest the income and benefit from compounding.

⚠️ DISTRIBUTION demands products that generate periodic income, where the returns are adequate for the investor's needs and have lower risk to income and principal invested. And here protection of capital is important, since THE OPPORTUNITY TO ADD TO THE CORPUS AFTER RETIREMENT IS LIMITED.

Between them sits the pre-retirement stage, where retirement investments are moved to investments with low volatility so that there is reduced risk of depreciation in the value of the corpus accumulated over time.

Notice that several products appear on both lists — bank deposits, bonds, mutual funds, post office time deposits. What changes is not the product but which of its features you are buying: the cumulative option for accumulation, the payout option for distribution.

Key terms in this chapter

Annuity finality: Once an annuity is purchased it is final — the principal can neither be redeemed nor can the type of annuity be changed. Its two acknowledged drawbacks are high surrender charges and failure to keep pace with inflation.
Commutation: Taking a portion of an annuity corpus as a lump sum. On retirement from a superannuation fund an employee may commute one-third, with the balance used to buy an annuity.
Digital gold: Gold bought online from as little as Re 1 with equivalent physical gold earmarked in a vault, requiring possession or sale within typically five years. Its significant drawback is that it does not work within the norms of any regulator, so no investor protection exists.
Employee Deposit-Linked Insurance Scheme: A scheme funded entirely by the employer at 0.5 percent of total wages, paying an assurance benefit to the nominee — in addition to the provident fund — on the death of the member while in service.
Employee Pension Scheme: A government-guaranteed EPFO scheme funded by DIVERTING 8.33 percent from the employer's EPF contribution, plus 1.16 percent of wages from the Central Government, paying a pension for life to members or their family from age 58.
Employee Provident Fund: A scheme where employee and employer each contribute 12 percent (10 in special cases) of basic emoluments. The employee may contribute more, but the employer's share is fixed. Withdrawal before five years of continuous service attracts 10 percent TDS.
EPF & MP Act, 1952: The Employees' Provident Fund and Miscellaneous Provisions Act, which requires covered employers to offer three schemes — the Employee Provident Fund, the Employee Pension Scheme and the Employee Deposit-Linked Insurance Scheme.
Government securities as an accumulation product: Tenors from a month to over 30 years with no default risk, but NO cumulative option — interest is paid on pre-specified dates — and lower rates than other borrowers precisely because there is no credit risk. Prices still move with interest rates.
Gratuity: A lump sum payable under the Payment of Gratuity Act, 1972 on termination after not less than five years of continuous service — the five-year condition not applying where termination is due to death or disablement.
Gratuity exemption test: For non-government employees, gratuity is exempt to the extent of the LEAST of half a month's average salary for each completed year of service, Rs 20,00,000, or the actual gratuity received. Government employees are fully exempt under section 10(10).
IINSS-C, 2013: Ten-year retail inflation-indexed bonds paying 1.5 percent plus CPI inflation, compounded half-yearly and cumulated, with the fixed rate acting as a floor payable even in deflation. Issued only in 2013-14 and now historical.
Immediate and deferred annuity: An immediate annuity starts paying on purchase; a deferred annuity has a vesting age some time away, during which the corpus is built and then used to buy the annuity at the rates applicable at that future date.
Inflation Indexed Bonds: Government securities with a fixed real coupon applied to inflation-adjusted principal, repaying the higher of face value or inflation-adjusted principal at maturity, so both income and principal are protected.
Kisan Vikas Patra: A certificate that doubles the amount invested in 124 months, open to an adult for self or two adults for a minor but not to NRIs or HUFs, encashable after 2½ years — with no deduction and interest taxed on accrual, though no TDS.
National Savings Certificate: A five-year post office certificate with interest compounded annually and paid at maturity, minimum Rs 1,000 in multiples of Rs 100 with no maximum. Premature encashment is allowed only on death, forfeiture by a pledgee, or court order.
Post Office Monthly Income Scheme: A five-year scheme paying interest monthly to all investors, from Rs 1,500 up to Rs 9 lakh singly or Rs 15 lakh jointly aggregated across all post offices, with premature withdrawal after one year and no tax benefit on investment or income.
Post Office Recurring Deposit: A five-year monthly deposit from Rs 100 in multiples of Rs 10, held by up to three adults, with penalties for missed instalments, 50 percent withdrawal after one year, closure after three years at only the savings bank rate — and no tax benefit at all.
Post Office Time Deposit: A deposit of one, two, three or five years held by at most two holders, minimum Rs 1,000 with no maximum, compounded quarterly with interest paid annually. Only the five-year variant attracts a deduction.
PPF loan and withdrawal timeline: A loan is available in the 4th to 6th year against the balance standing between the third and fifth financial year; one withdrawal a year is permitted from the seventh financial year. Closure is allowed after five years for medical expenses or education of dependents.
Pradhan Mantri Vaya Vandana Yojana: A ten-year LIC scheme for those aged 60 and above paying Rs 1,000 to Rs 10,000 a month for a purchase price of Rs 1.5 lakh to Rs 15 lakh, with the ceiling applying to the whole family, 98 percent returned on surrender for critical healthcare and a loan of up to 75 percent after three policy years. Closed to new enrolment from 31 March 2023.
Public Provident Fund: A 15-year individual-only account (no HUFs or NRIs, one per person) taking Rs 500 to Rs 1,50,000 a year in multiples of Rs 5, with interest compounded rather than paid out, and exempt at contribution, interest and maturity.
RBI Floating Rate Savings Bonds, 2020: Seven-year non-tradable bonds paying the NSC base rate plus 35 basis points, reset every six months, for resident individuals and HUFs, with senior-citizen early encashment at 4 years (80+), 5 years (70–80) or 6 years (60–70), subject to penalty.
REITs and InvITs: REITs are structured like mutual funds and invest predominantly in income-generating physical real estate, distributing rent, lease income and appreciation to unit holders. InvITs invest in infrastructure projects, either completed and revenue-generating or a mix with under-construction ones.
Retail investor category limit: In an IPO or FPO the minimum application ranges from Rs 10,000 to Rs 15,000, and to remain within the retail investor category the investment must not exceed Rs 2,00,000.
Reverse mortgage: The inverse of a normal mortgage — the owner pledges a residential property and receives periodic income instead of borrowing a lump sum and repaying it. Available to Indian citizens of 60 or more, on a primary residence with clear title and at least 20 years of residual life.
Reverse Mortgage Loan Enabled Annuity: An extension where the lending institution uses the reverse mortgage loan amount to buy a lifetime annuity from an insurer, closing the 20-year gap. NHB's loan-to-value ratio starts at 60 percent for ages 60–70 and rises to 75 percent at 80 and above, and the annuity received is exempt from tax.
RML caps and trigger events: Monthly payments are capped at Rs 50,000 and any lump sum at 50 percent of eligibility subject to Rs 15 lakh for medical treatment. The maximum tenure is 20 years, after which disbursements stop but interest keeps accruing; the loan falls due only on death of the last surviving borrower, permanent departure, or sale.
Section 153 deductions: Rs 10,000 for a non-senior individual or HUF on savings account interest EXCLUDING time deposits; Rs 50,000 for a senior citizen on all deposits INCLUDING time deposits with banks, post offices and co-operative banking societies. Not available under the new regime.
Senior Citizens Saving Scheme: A five-year scheme for those 60 and above (age applying only to the first holder), extendable in three-year blocks if applied within a year of maturity, capped at Rs 30 lakh across all accounts, paying interest quarterly with no payout choice.
Sovereign Gold Bond: An eight-year government bond in units of one gram paying 2.5 percent interest over and above gold price appreciation, with a minimum of 1 gram and maximum of 4 kg. Discontinued from FY 2024-25.
Superannuation benefit: A voluntary employer-provided fund, administered by trustees and approved by the Commissioner of Income Tax, offered either through a trust fund or through a life insurer's scheme, to augment mandatory retirement benefits.
The Rs 7,50,000 aggregate cap: From FY 2020-21, the employer's contribution to a recognised provident fund, an approved superannuation fund and the NPS taken together is capped at Rs 7,50,000 a year; the excess, and from FY 2021-22 the annual accretion on it, is taxed as a perquisite. It superseded the old 27 percent rule.
Unified Pension Scheme trade-off: Under UPS the government contributes a matching 10 percent to the employee's own corpus instead of 14 percent, plus 8.5 percent to a pooled corpus, in exchange for an assured payout of about half the average of the last twelve months' basic pay.
Voluntary Provident Fund: Contributions above the mandatory 12 percent into the same EPF account, with NO employer match, permitted up to 100 percent of basic salary, open-ended till retirement and portable through the Universal Account Number.

Check you have understood it

The L1 test for this chapter has 9 questions. Score 60% to unlock L2 Application (worked numericals and scenarios) and then L3 Exam-Ready (NISM-style traps, timed, with this paper's real marking). Tests, the higher levels and full mock exams need a free account so we can track your progress.

Create a free account

Original explanatory writing based on the official NISM workbook for Series XVII, which is published and copyrighted by NISM. Check figures against the current edition at nism.ac.in.

Something look wrong? Report it