You can now open an NPS account on PhonePe
What's the story
PhonePe has unveiled a new feature called Tatkal NPS. The facility allows users to open a National Pension System (NPS) account digitally through the PhonePe app. All you need is an initial contribution starting at ₹250. The company announced the launch today and said that it has partnered with various banks to offer this service.
User convenience
The feature uses existing bank KYC details
The Tatkal NPS facility leverages existing bank KYC details and OTP-based authentication to simplify the onboarding process.
This means users don't have to upload new documents for account creation.
The feature is designed to make opening an NPS account easier for those who may not have access to employer-linked retirement benefits, like gig workers, freelancers, or small business owners.
Step-by-step guide
How to open an NPS account using Tatkal facility
To open an NPS account using the Tatkal facility, users have to search for 'NPS' on the PhonePe app.
Then, they need to select 'National Pension Scheme,' choose a linked bank account and verify it via OTP.
After this, they can make their initial contribution via PhonePe UPI.
This will generate a Permanent Retirement Account Number (PRAN), which serves as an identifier for an NPS account.
Pension benefits
What is National Pension System?
The NPS is a government-regulated, defined-contribution retirement scheme. In this scheme, subscribers contribute to build a retirement corpus.
The eventual pension benefits depend on contributions made by the subscriber, investment performance, and applicable withdrawal and annuity rules.
PhonePe's new facility is likely to make this retirement savings option more accessible for users across India.