Pension accounts can now be opened via BHIM UPI; 'Instant NPS' launched for investing in NPS..

NPCI BHIM Services Limited (NBSL), a subsidiary of the National Payments Corporation of India (NPCI), announced on Wednesday the launch of 'Instant NPS' for users on the BHIM payment app.

Introduced by the Pension Fund Regulatory and Development Authority (PFRDA), the 'Instant NPS' facility allows users to open a National Pension System (NPS) account through the app, without the need to visit a bank branch or submit physical documents.

**Utilizing Existing Bank KYC**
The process leverages KYC data that has already been verified by the user's bank. Users simply need to enter their date of birth, select an eligible bank account, and make their initial NPS contribution via UPI.

Currently, the 'Instant NPS' facility on the BHIM app is available to banking customers of State Bank of India, HDFC Bank, ICICI Bank, Axis Bank, IndusInd Bank, and Bank of Baroda.

According to NPCI BHIM Services Limited, more banks will be added to the platform in the future.

**Comments from the MD and CEO**
Lalitha Nataraj, Managing Director and CEO of NPCI BHIM Services Limited (NBSL), stated, "UPI has already become an integral part of the daily financial habits of millions of Indians. The next opportunity lies in improving access to products like the NPS. The 'Instant NPS' feature on BHIM removes the initial barriers to opening an NPS account, enabling eligible users to set one up directly through the UPI app. With 'Instant NPS,' BHIM’s role has expanded—moving beyond merely facilitating contributions to now assisting with the entire NPS onboarding process."

The NPS is a low-cost pension scheme regulated by the PFRDA. Contributions made to this are invested in market-linked funds managed by regulated pension fund managers, and they also offer tax benefits in accordance with the rules.

PFRDA Chairperson S. Raman stated that UPI has transformed the way payments are made in India; 'Instant NPS' has the potential to revolutionize how people in India prepare for retirement.

Raman remarked, "In just three clicks, any eligible citizen can open a pension account through our partnership with the NPCI, banks, and UPI apps. Our mantra is simple: 'Become wealthy before you grow old'—and we want this message to reach every street, every village, and every Indian."

Furthermore, eligible Indian citizens between the ages of 18 and 85 can open an NPS account via 'Instant NPS' on the BHIM payment app with an initial contribution of at least ₹250.

Subsequently, further contributions can be made starting from as little as ₹10, subject to the applicable terms and conditions of the NPS.

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