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Q29 (IAS/2017) Economy › Schemes, Inclusion & Social Sector › Social security schemes Official Key

Who among the following can join the National Pension System (NPS) ?

Result
Your answer:  ·  Correct: C
Explanation

The correct answer is option C because the proposed new pension scheme should be made mandatory for all new employees of the State Governments and the date of its applicability may be decided by the respective State Governments[1]. This makes all State Government employees joining after the notification date by their respective states eligible for NPS.

Option A is incorrect because NPS is not limited to resident Indian citizens only; it has broader eligibility. Option B is wrong as the age range 21-55 is not the definitive criterion for NPS eligibility. Option D is explicitly incorrect because NPS has been implemented for all Government Employees (except armed forces) joining Central Govt. on or after 01 January 2004[2], and NPS is mandatorily applicable on Central Government employees (except Armed Forces) recruited on or after 01.01.2004[3]. The key disqualifier in option D is the inclusion of Armed Forces and the wrong date (1st April instead of 1st January 2004).

Sources
  1. [1] https://prsindia.org/files/bills_acts/bills_parliament/2005/Bhattacharya_Committee_on_Pension_Liabilities_of_State_Governments.pdf
  2. [2] https://www.pib.gov.in/newsite/PrintRelease.aspx?relid=128554
  3. [3] https://financialservices.gov.in/beta/en/nps
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Don’t just practise – reverse-engineer the question. This panel shows where this PYQ came from (books / web), how the examiner broke it into hidden statements, and which nearby micro-concepts you were supposed to learn from it. Treat it like an autopsy of the question: what might have triggered it, which exact lines in the book matter, and what linked ideas you should carry forward to future questions.
Q. Who among the following can join the National Pension System (NPS) ? [A] Resident Indian citizens only [B] Persons of age from 21 to 55…
At a glance
Origin: Mostly Current Affairs Fairness: Low / Borderline fairness Books / CA: 0/10 · 7.5/10

This question is a classic 'Fine Print' test. While most aspirants know NPS exists, the trap lies in the specific exclusions (Armed Forces) and the exact eligibility criteria (NRIs, Age). It penalizes superficial reading of current affairs and rewards those who track the 'Exceptions' in major government notifications.

How this question is built

This question can be broken into the following sub-statements. Tap a statement sentence to jump into its detailed analysis.

Statement 1
Are only resident Indian citizens eligible to join the National Pension System (NPS) in India as of 2017?
Origin: Web / Current Affairs Fairness: CA heavy Web-answerable

Web source
Presence: 4/5
"it is expected that with financial literacy and awareness campaign, which is an integral part of the NPS, the number subscribers under voluntary NPS for all citizens and the Swavalamban would grow rapidly in the coming years."
Why this source?
  • States that the voluntary NPS is intended 'for all citizens', indicating eligibility is not limited to only resident Indians.
  • Refers to coverage of 'all citizens as on 31st March, 2011', showing an inclusive citizen-based eligibility approach.
Web source
Presence: 3/5
"Government of India in the Ministry of Finance vide notification number F. No. 5/7/2003-ECB&PR dated the 22nd December, 2003, shall be deemed to be the National Pension System with effect from the 1st day of January, 2004... (2) Notwithstanding anything contained in the said notification, the National Pension System shall, on the commencement of this Act, have the following basic features, namely:– (a) every subscriber shall have an individual pension account under the National Pension System;"
Why this source?
  • Describes the statutory commencement and basic features of the National Pension System, framing it as a system with individual subscribers.
  • Provides context that NPS is established by government notification and regulation rather than restricted solely by residency wording in these features.

Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 8: Inclusive growth and issues > 8.8 National/New Pension System (NPS) > p. 269
Strength: 5/5
“Private Sector • (a) Corporates: Companies can adopt NPS for their employees with contribution rates as per the employment conditions.• (b) All citizens of India: Any individual (aged between 18 70 years) not being covered by any of the above sectors has been allowed to join NPS on voluntary basis from May 01, 2009.• NRIs have also been allowed to open NPS account.• There are tax benefits under NPS but no need to go into such details.• NPS account can be opened only in individual capacity and not jointly.”
Why relevant

Says NPS allows 'All citizens of India' (aged 18–70) to join and explicitly states 'NRIs have also been allowed to open NPS account.'

How to extend

Use this to infer that non-resident Indian citizens (NRIs) are treated as eligible in addition to resident citizens and check year-specific rules or notifications around 2017 for confirmation.

Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 8: Inclusive growth and issues > 8.8 National/New Pension System (NPS) > p. 268
Strength: 4/5
“• National Pension System (NPS) is a pension cum investment scheme launched by Government of India to provide old age security to Citizens of India. The Scheme is administered and regulated by Pension Fund Regulatory and Development Authority (PFRDA) set up under PFRDA Act, 2013. National Pension System Trust (NPST) established by PFRDA is the registered owner of all assets under NPS.• NPS is broadly classified into two categories:”
Why relevant

Defines NPS as a scheme 'to provide old age security to Citizens of India' and classifies accounts by citizenship-related categories.

How to extend

Combine this with the explicit NRI allowance (snippet 1) to explore whether eligibility was limited by residency or by citizenship status in 2017.

Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 1: National Income > Please note: > p. 7
Strength: 3/5
“• A person residing for one year or more in India is considered as ordinarily residing in India. A normal resident may or may not be a citizen of India. • A person has economic interest in India if he carries out his economic activities like production, consumption or investment in India at a significant scale as compared to his wealth and income. Normal Residents also include: • 1. Indians working in the Indian embassies abroad (e.g. ambassadors, etc.) • 2. Foreign citizens living in India for more than one year. (However, foreigners who come to India for medical treatment or study purpose are not considered normal residents even if they stay for more than one year.) Normal Residents do not include: • 1.”
Why relevant

Defines 'ordinary resident' and distinguishes residents from foreign citizens, giving a sense of how 'resident' status is treated in Indian policy texts.

How to extend

A student could use the resident/ordinary resident definitions to judge whether 'resident citizen' is a necessary criterion for schemes like NPS, by comparing with rules that explicitly mention NRIs.

Indian Polity, M. Laxmikanth(7th ed.) > Chapter 7: Citizenship > Table 7.1 Comparing NRI, PIO and OCI Cardholdersl > p. 70
Strength: 3/5
“No.: 2.; Elements of Comparison: Who is eligible? Non-Resident Indian (NRI): ; Person of Indian Origin (PIO): ; Overseas Citizen of India (OCI) Cardholder: Following categories of foreign nationals are eligible for registration as Overseas Citizen of India (OCI) Cardholder:- (i) Who was a citizen of India at the time of, or at any time after the commencement of the Constitution i.e. 26.01.1950; or (ii) who was eligible to become a citizen of India on 26.01.”
Why relevant

Provides comparison and eligibility context for Non-Resident Indian (NRI), Person of Indian Origin (PIO) and Overseas Citizen of India (OCI) categories.

How to extend

Use these definitions to determine which of these categories might qualify as 'citizens' or be separately allowed for NPS enrollment in 2017.

Indian Polity, M. Laxmikanth(7th ed.) > Chapter 7: Citizenship > D Registration of Overseas Citizen of India Cardholder > p. 68
Strength: 2/5
“The Central Government may register as an overseas citizen of India cardholder- (a) any person of fuB age and capacity,- (i) who is a citizen of another country, but was a citizen of India at the time of, or at any time after the commencement of the Constitution; or(ii) who is a citizen of another country, but -was eligible to become a citizen of India at the time of the commencement of the Constitution; or(iii) who is a citi7. But, a person, who or either of whose parents or grandparents or great grandparents is or had been a citizen of Pakistan, Bangladesh or such other country as the Central Government may specify, shall not be eligible for registration as an Overseas Citizen of India Cardholder.”
Why relevant

Specifies who may be registered as an Overseas Citizen of India (OCI) cardholder, clarifying citizenship-versus-registration distinctions.

How to extend

Combine with NPS citizenship language to assess whether OCI/PIO holders would be included or excluded by 'citizens of India' phrasing in scheme rules around 2017.

Statement 2
Is the eligible age range for joining the National Pension System (NPS) in India limited to 21 to 55 years as of 2017?
Origin: Weak / unclear Fairness: Borderline / guessy
Indirect textbook clues
Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 8: Inclusive growth and issues > 8.8 National/New Pension System (NPS) > p. 269
Strength: 5/5
“Private Sector • (a) Corporates: Companies can adopt NPS for their employees with contribution rates as per the employment conditions.• (b) All citizens of India: Any individual (aged between 18 70 years) not being covered by any of the above sectors has been allowed to join NPS on voluntary basis from May 01, 2009.• NRIs have also been allowed to open NPS account.• There are tax benefits under NPS but no need to go into such details.• NPS account can be opened only in individual capacity and not jointly.”
Why relevant

Gives an explicit age range for NPS enrolment (18–70) and states NPS has been open to all citizens on a voluntary basis since May 1, 2009.

How to extend

A student could take this stated 18–70 range and check 2017 PFRDA rules/notifications or historic NPS FAQs to test whether 21–55 was ever the official range.

Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 8: Inclusive growth and issues > 8.8 National/New Pension System (NPS) > p. 268
Strength: 4/5
“• National Pension System (NPS) is a pension cum investment scheme launched by Government of India to provide old age security to Citizens of India. The Scheme is administered and regulated by Pension Fund Regulatory and Development Authority (PFRDA) set up under PFRDA Act, 2013. National Pension System Trust (NPST) established by PFRDA is the registered owner of all assets under NPS.• NPS is broadly classified into two categories:”
Why relevant

Defines NPS as a regulated pension scheme administered by PFRDA and categorised into types, implying enrolment rules are set by a central regulator.

How to extend

Using this, a student could search PFRDA (the regulator) publications or circulars around 2017 to verify the official eligible-age criteria.

Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 12: Indian Industry > by the Ministry of Labour & Employment) > p. 393
Strength: 3/5
“(by the Ministry of Labour & Employment) Pradhan Mantri Shram Yogi Maan-dhan (PM-SYM) - It is a voluntary and contributory pension scheme to benefit unorganised sector workers (18-40 years old) whose monthly income is ₹15,000 or below. The beneficiary has to pay prescribed monthly contribution and the central government provides equal contribution. In return, minimum monthly pension of ₹3,000 is given after 60 years of age. National Pension Scheme for Traders, Shopkeepers and Self-Employed Persons - It is again a voluntary and contributory pension scheme for traders, shopkeepers and self-employed persons (18-40 years old) having an annual turnover not exceeding ₹1.5 crore and who are not a member of EPFO/ESIC/NPS/PM-SYM or an income taxpayer.”
Why relevant

Shows other Indian pension schemes (PM-SYM, traders’ scheme) explicitly cite enrolment age brackets (18–40), indicating age limits vary by scheme and are normally specified.

How to extend

A student can use this pattern (schemes state ages clearly) to infer NPS should also have a published age band to compare with 21–55.

Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 8: Financial Market > 7.54 Indian Economy > p. 240
Strength: 3/5
“• 3. Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY): It provides 1-year term life insurance of ₹2 lakh to bank account holders (in the age group of 18-50 years) for a premium of ₹330 per annum per subscriber. • 4. Atal Pension Yojana (APY): Under APY, a subscriber (in the age group of 18-40 years) will receive fixed monthly pension in the range of ₹1,000 to ₹5,000 after completing 60 years of age depending on the contributions made by the subscriber. Kisan Credit Card Scheme (KCC), introduced in 1998, is a tool for providing cash credit facility to the tenant farmers, oral lessees and share croppers.”
Why relevant

Similarly lists age bands for other social schemes (e.g., APY and insurance) showing 18 is a common lower limit for financial/social schemes.

How to extend

Combine with snippet [1] to suspect that a lower limit of 21 is uncommon and therefore the 21–55 claim may be suspect; verify against official scheme rules.

Indian Constitution at Work, Political Science Class XI (NCERT 2025 ed.) > Chapter 3: ELECTION AND REPRESENTATION > Universal franchise and right to contest > p. 66
Strength: 2/5
“Till 1989, an adult Indian meant an Indian citizen above the age of 21. An amendment to the Constitution in 1989, reduced the eligibility age to 18. Adult franchise ensures that all citizens are able to participate in the”
Why relevant

Notes that 21 years was historically a common legal threshold (voting eligibility before 1989), showing 21 can appear as an eligibility age in Indian law but is not universal.

How to extend

A student could treat the 21–55 figure as possibly misattributed from other eligibility contexts and thus seek the NPS-specific regulatory text for 2017.

Statement 3
Are all State Government employees who join service after the date of notification by their respective State Governments eligible to join the National Pension System (NPS) in India as of 2017?
Origin: Web / Current Affairs Fairness: CA heavy Web-answerable

Web source
Presence: 4/5
"Following the applicability of the new pension scheme of the Central Government only to new employees in civil (non-defense) services, the Group feels that structural modifications as indicated below may be compulsorily made applicable to the new employees who enter State Government service after a date specified by the respective State Governments. Accordingly, the Group recommends the"
Why this source?
  • Explicitly states the Group's view that structural modifications (i.e., the new pension scheme) should be made compulsorily applicable to new employees who enter State Government service after a date specified by the respective State Governments.
  • Ties the applicability of a new pension arrangement for State employees to a date set by the State Governments, supporting the claim that employees joining after notification would fall under the new scheme.
Web source
Presence: 4/5
"The proposed new pension scheme/s should be made mandatory for all new employees of the State Governments and the date of its applicability may be decided by the respective State Governments (Para 6.14)."
Why this source?
  • Direct recommendation that the proposed new pension schemes should be made mandatory for all new employees of State Governments, with the date of applicability to be decided by the respective State Governments.
  • Supports the mechanism that once a State decides the applicability date, new recruits thereafter would be covered by the new pension scheme.

Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 8: Inclusive growth and issues > 8.8 National/New Pension System (NPS) > p. 269
Strength: 5/5
“• 1. Government Sector • (a) Central Government: The Central Government had introduced the National Pension System (NPS) with effect from January 1, 2004 (except for armed forces). All the employees of Central Autonomous Bodies (CABs) who have joined on or after the above-mentioned date are also covered under Government sector of NPS. Central Government/CABs employee contributes towards pension from monthly salary along with matching contribution from the employer. NPS is mandatory for Central Govt. and CAB employees. Govt. employees make a monthly contribution at the rate of 10% of their salary and a matching contribution is paid by the Central Govt.”
Why relevant

Shows a clear pattern for the Central Government/CABs: NPS coverage is tied to a specific 'date of joining' (e.g., on or after Jan 1, 2004) — eligibility depends on joining date.

How to extend

A student could infer that similar ‘date-of-joining’ rules might be used by states and then check individual State notifications to see whether they adopted the same pattern for state employees.

Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 8: Inclusive growth and issues > 8.8 National/New Pension System (NPS) > p. 268
Strength: 4/5
“• National Pension System (NPS) is a pension cum investment scheme launched by Government of India to provide old age security to Citizens of India. The Scheme is administered and regulated by Pension Fund Regulatory and Development Authority (PFRDA) set up under PFRDA Act, 2013. National Pension System Trust (NPST) established by PFRDA is the registered owner of all assets under NPS.• NPS is broadly classified into two categories:”
Why relevant

Defines NPS as a centrally regulated scheme administered by PFRDA and classifies categories under the scheme, implying rule-based, administrable coverage.

How to extend

One could combine this with the fact that PFRDA sets framework rules and then look for state-level notifications or PFRDA/state circulars (post-2013 Act) to determine if states made employees eligible after their notification dates.

Indian Polity, M. Laxmikanth(7th ed.) > Chapter 15: Centre-State Relations > El l AtI~lndia Services > p. 150
Strength: 4/5
“Like in any other federation, the Centre and the states also have their separate public services called as the Central Services and the State Services respectively. In addition, there are All-India Services (IAS), IPS and IFoS. The members of these services occupy top positions (or key posts) under both the Centre and the states and serve them by turns. But, they are recruited and trained by the Centre. These services are controlled jointly by the Centre and the states. The ultimate control lies with the Central government while the immediate control vests with the state governments. In 1947, Indian Civil Service (ICS) was replaced by IAS and the Indian Police (IP) was replaced by IPS, and were recognised by the Constitution as All-India Services.”
Why relevant

Explains that state services are distinct and that immediate control of All-India Services vests with states — illustrating that states have jurisdiction over their own service conditions.

How to extend

A student could use this to justify checking state government powers to decide pension rules for state employees (i.e., whether states can notify NPS applicability to their staff).

Indian Polity, M. Laxmikanth(7th ed.) > Chapter 74: Public Services > State Services > p. 547
Strength: 4/5
“The personnel of state services work under the exclusive jurisdiction of the state government. They hold different positions (general, functional and technical) in the departments of the state government. However, they occupy lower positions (in the administrative hierarchy of the state) than those held by the members of the All-India Services (IAS, IPS and IFS). The number of services in a state differ from state to state. The services that are common to all the states are: • I. Civil Service, • 2. Police Service. • 3. Forest Service. • 4. Agricultural Service. • 5. Medical Service. • 6. Veterinary Service. • 7.”
Why relevant

States that personnel of state services work under exclusive jurisdiction of the state government and that service structures differ by state.

How to extend

This supports the approach of examining each State Government’s notifications individually, since states can independently determine service conditions (including pension scheme adoption and applicable joining dates).

Statement 4
Are all Central Government employees, including members of the Armed Forces, who joined service on or after 1 April 2004 eligible to join the National Pension System (NPS) in India as of 2017?
Origin: Web / Current Affairs Fairness: CA heavy Web-answerable

Web source
Presence: 5/5
"NPS has been implemented for all Government Employees (except armed forces) joining Central Govt. on or after 01 January 2004."
Why this source?
  • Explicitly states NPS was implemented for Central Government employees but excludes the armed forces.
  • Gives the effective date as 01 January 2004 (not 01 April 2004), which contradicts the statement's date.
Web source
Presence: 5/5
"NPS is mandatorily applicable on Central Government employees (except Armed Forces) recruited on or after 01.01.2004."
Why this source?
  • Confirms NPS is mandatory for Central Government employees recruited on or after 01.01.2004 but expressly excludes the Armed Forces.
  • Supports that Armed Forces members are not covered, so they would not be eligible as the statement claims.
Web source
Presence: 5/5
"In 2004, the National Pension System (NPS) was introduced for the Central Government servants entering service w.e.f. 01.01.2004 (except armed forces)."
Why this source?
  • Reiterates the 01.01.2004 commencement for Central Government servants and again notes the exclusion of armed forces.
  • Provides corroborating government-source wording that contradicts the claim that armed forces joining after 1 April 2004 were eligible.

Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 8: Inclusive growth and issues > 8.8 National/New Pension System (NPS) > p. 269
Strength: 5/5
“• 1. Government Sector • (a) Central Government: The Central Government had introduced the National Pension System (NPS) with effect from January 1, 2004 (except for armed forces). All the employees of Central Autonomous Bodies (CABs) who have joined on or after the above-mentioned date are also covered under Government sector of NPS. Central Government/CABs employee contributes towards pension from monthly salary along with matching contribution from the employer. NPS is mandatory for Central Govt. and CAB employees. Govt. employees make a monthly contribution at the rate of 10% of their salary and a matching contribution is paid by the Central Govt.”
Why relevant

States NPS was introduced for Central Government from 1 Jan 2004 but explicitly says 'except for armed forces' and that NPS is mandatory for Central Govt. and Central Autonomous Bodies (CAB) employees who joined on/after that date.

How to extend

A student could infer that armed forces personnel were excluded at introduction and therefore should check whether any later policy (by 2017) changed that exclusion.

Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 8: Inclusive growth and issues > Supreme Court judgment November 2022: > p. 268
Strength: 4/5
“• Any individual who joined the Employees' Provident Fund (EPF) Scheme on or after September 1, 2014, will not be eligible to join the Employees' Pension Scheme (EPS) if their basic salary exceeds Rs 15,000 per month. • The maximum pensionable salary for the purposes of calculating the pension is still Rs 15,000 per month as notified by the EPFO in 2014. This means that even if basic salary is higher than Rs 15,000 the contribution to pension will continue to be calculated on a basic salary of Rs 15,000. • The EPF Interest Rate is determined by EPFO in consultation with the Finance Ministry for every financial year.• Once the "The Code on Social Security 2020" becomes effective, the Employees' Provident Fund and Miscellaneous Provisions Act, 1952 will be repealed.”
Why relevant

Shows that pension schemes often have specific cut-off dates and salary-based or scheme-specific eligibility rules (example: EPF/EPS rules for those joining on/after a date).

How to extend

Apply this pattern to NPS: a researcher should look for similar date-based or category-based exclusions or amendments affecting armed forces or other groups up to 2017.

Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 8: Inclusive growth and issues > 8.8 National/New Pension System (NPS) > p. 270
Strength: 4/5
“• At the time of retirement, employees are required to purchase an annuity plan for a monthly pension with a minimum of 40% of the accumulated corpus. The employee can withdraw the remaining corpus (60%) as a lump sum.• With NPS, the customer has much greater flexibility and has a greater sense of control over her fate as the customers can choose fund managers as well as they can decide the percentage of funds invested in equity and debt.• Under OPS, employees are not required to contribute anything to their pensions.• OPS was a major incentive for taking government employment as there was guarantee of a pension postretirement without any contribution.• OPS became unsustainable for governments due to rise in life expectancy.”
Why relevant

Describes NPS operational features (employee contribution, annuity rules) and contrasts it with the old OPS where employees did not contribute, implying a structural change that could be applied differently across employee groups.

How to extend

Use this to reason that because NPS shifts contribution responsibility to employees, some groups (e.g., armed forces) might have been treated differently, prompting verification of exclusions or phased inclusion until 2017.

Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 12: Indian Industry > by the Ministry of Labour & Employment) > p. 393
Strength: 3/5
“(by the Ministry of Labour & Employment) Pradhan Mantri Shram Yogi Maan-dhan (PM-SYM) - It is a voluntary and contributory pension scheme to benefit unorganised sector workers (18-40 years old) whose monthly income is ₹15,000 or below. The beneficiary has to pay prescribed monthly contribution and the central government provides equal contribution. In return, minimum monthly pension of ₹3,000 is given after 60 years of age. National Pension Scheme for Traders, Shopkeepers and Self-Employed Persons - It is again a voluntary and contributory pension scheme for traders, shopkeepers and self-employed persons (18-40 years old) having an annual turnover not exceeding ₹1.5 crore and who are not a member of EPFO/ESIC/NPS/PM-SYM or an income taxpayer.”
Why relevant

Provides examples of multiple, sector-specific pension schemes (PM-SYM, NPS for traders) indicating pension coverage in India is fragmented and often tailored by worker category.

How to extend

A student could use this pattern to suspect that armed forces or certain Central employees might have distinct pension arrangements and thus may not be automatically covered by NPS as of 2017.

Indian Polity, M. Laxmikanth(7th ed.) > Chapter 74: Public Services > All-India Services > p. 546
Strength: 2/5
“They are: • IAS by the Ministry of Personnel, Public Grievances and Pensions • IPS by the Ministry of Home Affairs • IFoS by the Ministry of Environment, Forest and Climate Change It must be mentioned here that the AII-India Services are controlled jointly by the Central and state governments. The ultimate control lies with the Central Government while the immediate control vests with the state governments. Their salaries and pensions are met by the states. However, the disciplinary action (imposition of penalties) against these officers can only be taken by the Central government. Presently, there are twenty-six state cadres in all for the All-India Services.”
Why relevant

Explains that salaries and pensions for All-India Services are met by states, highlighting administrative/financial distinctions between service categories.

How to extend

This suggests checking administrative responsibility (Central vs State vs Armed Forces) is relevant to determine whether a particular employee group was brought under NPS by 2017.

Pattern takeaway: UPSC consistently tests the 'Exclusion Clause' of major schemes. If a scheme covers 'Central Govt Employees', the immediate reflex must be to check 'Does this include the Military?'. Additionally, arbitrary numbers like '21 to 55' in Option B are usually wrong; policy ages align with legal adulthood (18) or retirement (60).
How you should have studied
  1. [THE VERDICT]: Trap. Option D is the 'honey trap'—it looks official with a date, but 'including Armed Forces' is the fatal flaw. Source: Standard Economy texts (Vivek Singh/Ramesh Singh) or PFRDA FAQs.
  2. [THE CONCEPTUAL TRIGGER]: Financial Market Instruments & Social Security (NPS, APY, EPF).
  3. [THE HORIZONTAL EXPANSION]: Memorize the 'Pension Trinity' limits: 1) NPS (18-70 yrs, Resident + NRI, Market-linked); 2) Atal Pension Yojana (18-40 yrs, Poor/Unorganized, Guaranteed minimum); 3) PM Shram Yogi Maan-dhan (18-40 yrs, Income <15k). Note: Armed Forces are the ONLY central employees still on the Old Pension Scheme (OPS).
  4. [THE STRATEGIC METACOGNITION]: When reading a scheme, ask 3 questions: Who is EXCLUDED? (Armed Forces); What is the AGE bracket? (Usually starts at 18, not 21); Is it CITIZENSHIP-bound or RESIDENCY-bound? (NPS allows NRIs).
Concept hooks from this question
📌 Adjacent topic to master
S1
👉 NPS eligibility: Citizens including NRIs
💡 The insight

Reference [1] states NPS is for citizens of India and explicitly notes NRIs have also been allowed to open NPS accounts, directly relating to who may join NPS.

High-yield for UPSC because scheme eligibility (who can join social-security schemes) is commonly tested and links social policy to citizenship/residency. Understanding whether schemes exclude or include NRIs helps answer questions on coverage, fiscal implications and regulatory scope.

📚 Reading List :
  • Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 8: Inclusive growth and issues > 8.8 National/New Pension System (NPS) > p. 269
  • Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 8: Inclusive growth and issues > 8.8 National/New Pension System (NPS) > p. 268
🔗 Anchor: "Are only resident Indian citizens eligible to join the National Pension System (..."
📌 Adjacent topic to master
S1
👉 Distinctions among NRI, PIO and OCI statuses
💡 The insight

Several references ([3], [6], [10]) compare who is eligible as NRI, PIO or OCI—important for interpreting which foreign/resident categories can access Indian schemes or rights.

Mastering these distinctions is vital for polity and public policy questions: it clarifies entitlements, registration rules and cross-border rights. This enables tackling questions about scheme access, citizenship-linked privileges, and administrative classifications.

📚 Reading List :
  • Indian Polity, M. Laxmikanth(7th ed.) > Chapter 7: Citizenship > Table 7.1 Comparing NRI, PIO and OCI Cardholdersl > p. 70
  • Indian Polity, M. Laxmikanth(7th ed.) > Chapter 7: Citizenship > Table 7.1 Comparing NRI, PIO and OCI Cardholdersl > p. 72
  • Indian Polity, M. Laxmikanth(7th ed.) > Chapter 7: Citizenship > D Registration of Overseas Citizen of India Cardholder > p. 68
🔗 Anchor: "Are only resident Indian citizens eligible to join the National Pension System (..."
📌 Adjacent topic to master
S1
👉 Meaning of 'ordinary resident' and residency criteria
💡 The insight

Reference [9] (and [7]) define 'ordinarily residing' and residency thresholds, which affect eligibility for programmes and differentiate residents from NRIs.

Understanding residency definitions is crucial for questions on eligibility, taxation and social benefits. It connects immigration/citizenship topics with economic policy and helps answer multi-faceted questions about who qualifies for national schemes.

📚 Reading List :
  • Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 1: National Income > Please note: > p. 7
  • Indian Polity, M. Laxmikanth(7th ed.) > Chapter 7: Citizenship > Acquisition of Citizenship > p. 64
🔗 Anchor: "Are only resident Indian citizens eligible to join the National Pension System (..."
📌 Adjacent topic to master
S2
👉 NPS eligibility age range (voluntary subscribers)
💡 The insight

Reference [1] explicitly states the age band allowed to join NPS (voluntary individual accounts) since 2009, which directly bears on claims about any '21–55' limit.

High-yield: UPSC frequently tests specifics of flagship social security schemes (eligibility, launch dates, administering authority). Knowing the correct NPS age band helps answer direct factual questions and compare pension frameworks. Link this to PFRDA/NPST and scheme amendments when revising.

📚 Reading List :
  • Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 8: Inclusive growth and issues > 8.8 National/New Pension System (NPS) > p. 269
🔗 Anchor: "Is the eligible age range for joining the National Pension System (NPS) in India..."
📌 Adjacent topic to master
S2
👉 Age brackets across pension/insurance schemes (APY, PM‑SYM, PMJJBY)
💡 The insight

References [3] and [4] show that different schemes use different eligible-age ranges (e.g., 18–40, 18–50), highlighting that precise age limits vary by scheme and must be checked per scheme rather than assumed.

High-yield: Questions often require distinguishing between multiple welfare schemes; mastering typical eligibility patterns (age, income, turnover) allows quick elimination of wrong options. Study by comparing scheme features in tabular form for retention.

📚 Reading List :
  • Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 12: Indian Industry > by the Ministry of Labour & Employment) > p. 393
  • Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 8: Financial Market > 7.54 Indian Economy > p. 240
🔗 Anchor: "Is the eligible age range for joining the National Pension System (NPS) in India..."
📌 Adjacent topic to master
S2
👉 Legal/constitutional ages (18 vs 21) and implications for eligibility
💡 The insight

References [7] and [5] record the constitutional reduction of adult franchise to 18 (from earlier 21) and other age thresholds, explaining why age-claims (like '21 to 55') may reflect older norms or confusion between different legal minimums.

Medium-high: UPSC tests age-related eligibility across polity topics (voting, contesting, office‑holding). Understanding historical changes and distinct legal ages prevents conflating unrelated age thresholds when evaluating scheme eligibility.

📚 Reading List :
  • Indian Constitution at Work, Political Science Class XI (NCERT 2025 ed.) > Chapter 3: ELECTION AND REPRESENTATION > Universal franchise and right to contest > p. 66
  • Introduction to the Constitution of India, D. D. Basu (26th ed.). > Chapter 18: PANCHAYATS > Qualification for membership. > p. 320
🔗 Anchor: "Is the eligible age range for joining the National Pension System (NPS) in India..."
📌 Adjacent topic to master
S3
👉 NPS coverage for Central Government and Central Autonomous Bodies (join-date rule)
💡 The insight

Reference [1] shows NPS was made effective for Central Government employees from a specific date (1 Jan 2004) and that CAB employees who joined on or after that date are covered—illustrating a join-date-based coverage rule for government employees.

High-yield for UPSC questions on pension reforms and eligibility: candidates should remember that coverage can depend on an official start date and on categories of government employers (Central vs CAB). This concept links to public finance and social security policy questions, and helps answer questions about who becomes eligible under reform measures.

📚 Reading List :
  • Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 8: Inclusive growth and issues > 8.8 National/New Pension System (NPS) > p. 269
🔗 Anchor: "Are all State Government employees who join service after the date of notificati..."
🌑 The Hidden Trap

The 'Exit Rule' Trap: In NPS, you cannot withdraw 100% corpus at 60. You MUST use at least 40% to purchase an annuity. A future question will swap this 40% with 50% or claim 'full withdrawal allowed'.

⚡ Elimination Cheat Code

The 'Holy Cow' Logic: In Indian administration, the Armed Forces are often treated as a separate caste due to the nature of their service (early retirement, high risk). Any statement saying a civilian reform applies 'including Armed Forces' without specific qualification is highly suspicious. Eliminate D immediately.

🔗 Mains Connection

Fiscal Federalism (Mains GS2/GS3): The shift from OPS to NPS was driven by the 'Fiscal Deficit' burden on states. Option C reflects this federal flexibility—states adopted it later because they have autonomy over their state services (List II entry).

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SIMILAR QUESTIONS

CDS-I · 2018 · Q52 Relevance score: 3.63

Which one of the following is the maximum age of joining National Pension System (NPS) under the NPS-Private Sector?

IAS · 2008 · Q13 Relevance score: -0.96

Consider the following statements with reference to Indira Gandhi National Old Age Pension Scheme (IGNOAPS): 1. All persons of 60 years or above belonging to the households below poverty line in rural areas are eligible. 2. The Central Assistance under this Scheme is at the rate of Rs 300 per month per beneficiary. Under the Scheme, States have been urged to give matching amounts. Which of the statements given above is/are correct?

CDS-I · 2002 · Q74 Relevance score: -1.60

'Annapurna' Scheme, launched by the Government of India from April 2000, was meant to provide food security to the

IAS · 2016 · Q76 Relevance score: -2.69

Regarding 'Atal Pension Yojana', which of the following statements is/are correct? 1. It is a minimum guaranteed pension scheme mainly targeted at unorganized sector workers. 2. Only one member of a family can join the scheme. 3. Same amount of pension is guaranteed for the spouse for life after subscriber's death. Select the correct answer using the code given below.