Question

Identify the government sponsored recruitment savings scheme in India that allows individuals to contribute to a pension fund.

Options

• Gratuity

• Group Insurance

• National Pension Scheme

• Encashment of leave

Answer 1

National Pension Scheme

Explanation:

The National Pension Scheme (NPS) is a government-backed retirement savings plan in India. People contribute regularly while working, and at retirement, they can withdraw part of the money as a lump sum. The rest is used to provide a monthly pension. It is open to everyone and aims to ensure financial security in old age.