The NPS is launched by The Government of India with a lot of hope. But it has not been taken off as it was expected due to some reasons. Though PFRDA is working for the betterment of the product, still there are disadvantages of the product, which I feel are:
1. The liquidity is an issue for NPS. If you are 30 years age and started investing for NPS you need to wait for another 30 years for withdrawal of money.
2. Though there is option of partial withdrawal, it's not so easy during requirement.
3. You need to invest in a government approved annuity fund which is mandatory.
4. The 20% of the maturity amount is still taxable if you withdraw it lump sum.
So, you should not invest in NPS only for the tax saving purpose.