Skip to content

NISM Certifications · NISM-Series-X-B: Investment Adviser (Level 2) · Retirement Products

Meena, a salaried individual, contributes to her NPS Tier I account. Which statement about the Tier II account of NPS is correct?

NPS Tier II is a voluntary savings account that can be opened only by someone with an active Tier I account, and it has no lock-in, so withdrawals are allowed freely. It is neither mandatory nor restricted to government employees.

  1. AIt is a voluntary savings facility with no lock-in for withdrawals, available only to those holding a Tier I accountCorrect
  2. BIt has the same lock-in as Tier I until age 60
  3. CIt is mandatory for all Tier I subscribers
  4. DIt cannot be opened by non-government subscribers

Explanation

Tier II is a voluntary add-on account that requires an active Tier I account and permits withdrawals as needed, without a retirement lock-in. It is not mandatory and is open to non-government subscribers too. Tier I carries the retirement lock-in.

Did you get it right without looking?

One question tells you little. A timed set on Retirement Products shows your real accuracy, how long you take and where you lose marks.

Practise Retirement ProductsFree diagnostic mock

More Retirement Products questions