NPS can refer to two different concepts, each with its own meaning:

1. **National Pension System (NPS)**:

   - **Definition**: The National Pension System is a voluntary, long-term retirement savings scheme in India. It is designed to provide pension income to Indian citizens after they retire.

   - **How it Works**: Individuals who join the NPS contribute regularly towards their retirement account during their working years. These contributions are invested in a mix of asset classes, including equities, government securities, and corporate bonds, based on the individual's risk preferences. The NPS offers two types of accounts: Tier I (mandatory) and Tier II (optional). The funds in the Tier I account are meant for retirement and have certain withdrawal restrictions, while Tier II allows more flexibility in withdrawals.

   - **Tax Benefits**: Contributions made to NPS are eligible for tax deductions under Section 80CCD of the Income Tax Act in India. Additionally, there are tax benefits on the maturity amount, making it a tax-efficient retirement savings option.

   - **Pension Annuity**: Upon retirement, a portion of the accumulated NPS corpus can be withdrawn as a lump sum, and the rest must be used to purchase a pension annuity that provides regular pension payments.

2. **Net Promoter Score (NPS)**:

   - **Definition**: Net Promoter Score is a metric used in business to measure customer loyalty and satisfaction with a company's products or services. It gauges the likelihood of customers recommending a company to others.

   - **How it Works**: NPS is based on a simple survey question: "On a scale of 0 to 10, how likely are you to recommend our company/product/service to a friend or colleague?" Based on their responses, customers are categorized into three groups:
     
     - Promoters (score 9-10): These are highly satisfied customers who are likely to recommend the company.
     
     - Passives (score 7-8): These customers are satisfied but not enthusiastic, and they may not actively promote the company.
     
     - Detractors (score 0-6): These are unsatisfied customers who may actively discourage others from using the company's products or services.

   - **Calculating NPS**: NPS is calculated by subtracting the percentage of detractors from the percentage of promoters. The resulting score can range from -100 to +100, with a higher score indicating better customer loyalty and satisfaction.

   - **Use in Business**: NPS is widely used by businesses to assess customer sentiment, identify areas for improvement, and track changes in customer satisfaction over time. It's a valuable tool for understanding and managing customer relationships.

So, depending on the context, NPS can refer to either the National Pension System in India or the Net Promoter Score used in business and customer feedback analysis.

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