BHIM Payments App Enables Instant NPS Account Opening Through ‘Tatkaal NPS’

Rohtak: NPCI BHIM Services Limited (NBSL), a wholly owned subsidiary of the National Payments Corporation of India (NPCI), has announced the availability of the ‘Tatkaal NPS’ facility on the BHIM Payments app. Introduced by the Pension Fund Regulatory and Development Authority (PFRDA), the facility allows users to open a National Pension System (NPS) account through the app in just three steps, without visiting a bank branch or submitting additional documents.

How Can Users Open an NPS Account Through BHIM?

The onboarding process uses bank-verified Know Your Customer (KYC) details. Users need to enter their date of birth, select an eligible bank account and make their first contribution to the NPS through UPI.

Currently, Tatkaal NPS is available on the BHIM app to customers of the State Bank of India (SBI), HDFC Bank, ICICI Bank, Axis Bank, IndusInd Bank and Bank of Baroda. More banks are expected to join the facility in the future.

How Will Tatkaal NPS Simplify Pension Account Opening?

Lalitha Nataraj, Managing Director and CEO of NBSL, said UPI had become an integral part of everyday financial transactions for millions of Indians. She added that the next opportunity was to improve public access to financial products such as the NPS.

According to Nataraj, Tatkaal NPS simplifies the initial process of opening a pension account by enabling eligible users to do so directly through a UPI app. The facility also expands BHIM's role beyond facilitating contributions to supporting the NPS account-opening process.

What Are the Benefits of the National Pension System?

The NPS is a low-cost pension scheme regulated by PFRDA. Contributions are invested in market-linked funds managed by regulated pension fund managers. Tax benefits are also available, subject to applicable rules.

Tatkaal NPS supports PFRDA's vision of building a pension-oriented society in which citizens can work towards securing an income for their retirement years.

PFRDA Highlights the Role of Digital Payments in Retirement Planning

S. Raman, Chairperson of PFRDA, said UPI had transformed the way people make payments in India, and Tatkaal NPS could change how they prepare for retirement.

He noted that collaboration among NPCI, banks and UPI applications could enable eligible citizens to open pension accounts in just three clicks.

Raman also emphasised the importance of spreading awareness about retirement planning across cities, villages and communities throughout India.

Who Is Eligible and What Is the Minimum Contribution?

Indian citizens aged 18 to 85 years who meet the eligibility requirements can open an NPS account through Tatkaal NPS on the BHIM Payments app.

The minimum initial contribution is ₹250.