'Tatkal NPS' on BHIM payments app: Open your National Pension System (NPS) account at home

New Delhi: The National Pension System (NPS) allows subscribers to build a retirement fund through regular contributions. Enrolling in the scheme usually requires one to visit a branch, complete paperwork, or register online through the NPS portal. However, both processes consume time and might feel complicated. Therefore, the NPCI BHIM Services Limited (NBSL) announced the Tatkal NPS service on the BHIM payments app.

What is Tatkal NPS?

Regulated by the Pension Fund Regulatory and Development Authority (PFRDA), NPS is a government-backed scheme that aims to provide financial security to subscribers post-retirement by setting aside a small portion of their earnings to accumulate in the pension fund. The returns are linked to the market and may differ from one year to another.

Traditionally, the procedure for opening an NPS account involves visiting a branch and completing paperwork.

Tatkal NPS is a facility that allows users to create an NPS account without needing fresh paperwork or a branch visit. People can now use BHIM's Unified Payments Interface (UPI) service to enrol. However, subscribers must have bank-verified KYC.

To open the account, one has to enter the date of birth, select the eligible bank account, and make the first contribution.

PFRDA Chairperson S. Ramann said that UPI had transformed the way India pays and that Tatkal NPS could transform the way India prepares for retirement.

"With just three clicks, any eligible citizen can open a pension account through our partnership with NPCI, banks and UPI apps. Our mantra is simple: Grow rich before you grow old. And we want this message to reach every street, every village and every Indian," Ramann added.

Who can open the account?

Any eligible Indian citizen aged between 18 and 85 years can enrol in the scheme through the Tatkal NPS facility available on the BHIM payments app. The person has to begin with a minimum contribution of Rs 250.

Banks available on BHIM

State Bank of India

HDFC Bank

ICICI Bank

Axis Bank

IndusInd Bank

Bank of Baroda

More banks will subsequently be added, according to NPCI BHIM Services Limited.

Lalitha Nataraj, Managing Director and CEO of NBSL, said, "UPI has already become a daily financial behaviour for hundreds of millions of Indians. The next opportunity is to improve access to products such as NPS. Tatkal NPS on BHIM addresses the first barrier, getting started, by allowing eligible users to open an NPS account directly through a UPI app. Tatkal NPS now enables eligible users to open an NPS account through the app, extending BHIM's role from facilitating contributions to supporting NPS onboarding."

(With inputs from IANS)