Digital payments and fintech company PhonePe has announced the launch of Tatkal NPS (National Pension System) on its platform. This will help users securely create their NPS account 100 per cent digitally, eliminating barriers to opening a pension account. The company has partnered with prominent banking institutions to democratise long-term retirement planning. Users can open a government-backed pension account with a contribution of just Rs 250.
What is Tatkal NPS
Under NPS Tatkal, a scheme launched by the Pension Fund Regulatory and Development Authority (PFRDA), users can open an NPS account through the UPI app using a KYC-verified bank account and contribute via UPI.
This framework enables PhonePe and BHIM to provide their users with an effortless, paperless onboarding experience, allowing them to create their Permanent Retirement Account Number (PRAN) in minutes.
Earlier, subscribers had to first register online or offline to obtain a Permanent Retirement Account Number to formally join the NPS.
How to access and book Tatkal NPS on PhonePe:
- Initiation: Open the PhonePe app, type NPS in the search bar, and select the “National Pension Scheme” option.
- Account Setup: Tap ‘Start Pension Account Journey’ and select your preferred linked bank account.
- Instant Verification: Authenticate the bank account instantaneously via a secure bank OTP.
- Final Booking: Enter the initial contribution amount (starting at Rs 250) and complete the secure payment to generate your PRAN instantly.
National Pension System
The government introduced the defined-contribution National Pension System on January 1, 2004, replacing the old pension scheme. Under the NPS, individuals contribute during their working years, and their retirement corpus is invested in market-linked instruments. The accumulated corpus provides retirement benefits.
The NPS is mandatory for central government employees, while private sector individuals may join voluntarily.
Meanwhile, the pension regulator launched a unified digital platform, NPS Central, to enable subscribers of the National Pension System (NPS) to enrol, invest and manage their pension accounts through a single interface.
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