New Delhi, Oct 14 — NPCI BHIM Services Limited (NBSL) -- a wholly owned subsidiary of the National Payments Corporation of India (NPCI) -- on Wednesday said that 'Tatkal NPS' is now available on the BHIM Payments App.
Introduced by the Pension Fund Regulatory and Development Authority (PFRDA), Tatkal NPS enables users to open a National Pension System (NPS) account through the app in three steps, without a branch visit or submission of fresh paperwork.
However, the onboarding process uses existing bank-verified KYC. Users need to enter their date of birth, select their eligible bank account and make their first NPS contribution through UPI.
Moreover, Tatkal NPS is currently available on BHIM App for banking customers of State Bank of India, HDFC Bank, ICICI Bank, Axis Bank, IndusInd Bank and Bank of Baroda.
Additional banks are expected to be added subsequently, according to NPCI BHIM Services Limited.
Lalitha Nataraj, Managing Director and CEO, 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."
NPS is a low-cost pension scheme regulated by PFRDA and contributions are invested in market-linked funds managed by regulated pension fund managers with tax benefits available as applicable.
In addition, Tatkal NPS supports PFRDA's vision of a pensioned society where every citizen can work towards a secure income in old age.
PFRDA Chairperson S. Ramann said that UPI transformed the way India pays; Tatkal NPS can 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," adds Ramann.
Additionally, eligible Indian citizens between 18 and 85 years can open an NPS account through Tatkal NPS on the BHIM Payments App with the minimum initial contribution of Rs 250.
While subsequent contributions can be made starting from Rs 10, subject to applicable NPS requirements.