An easy way to build a retirement fund: Open an NPS account from home using UPI

Opening an NPS account has now become easy. Thanks to the PFRDA's 'NPS Tatkal' facility, customers of select banks can open an account and deposit their initial contribution from the comfort of their homes using BHIM UPI.

Nowadays, everyone wants to invest their savings in avenues that offer good returns for the future. If you wish to start saving for retirement now, the National Pension System (NPS) could prove to be an excellent option. The process of opening an NPS account has become much simpler than before. The Pension Fund Regulatory and Development Authority (PFRDA) has launched the 'NPS Tatkal' facility, allowing users to open an NPS account from home using UPI.

The best part is that there is no need to go through a lengthy paperwork process. Currently, this facility is available via the BHIM UPI app. If your bank is linked to this service, a new NPS account can be opened using the KYC details already held by the bank.

Where is the NPS Tatkal facility available?

Currently, the NPS Tatkal facility has been launched via the BHIM UPI app. Customers of specific banks linked to this facility can use it; these include SBI, HDFC Bank, ICICI Bank, Axis Bank, and IDFC First Bank. If your UPI is linked to an account with any of these banks and the bank already has your KYC details, you can complete the NPS account opening process based on that existing information.

Who can open an NPS account?

Eligible individuals can join the scheme under the NPS 'All Citizen Model'. However, to open an account instantly via NPS Tatkal, it is essential that your bank supports this facility. Therefore, before registering, please verify whether your bank supports the NPS Tatkal facility.

How to open an NPS account using the BHIM app?

First, open the BHIM UPI app on your mobile and log in using the mobile number linked to your bank account.

Navigate to the section related to 'Financial Services' or 'Investment' within the app.

Select the 'NPS Tatkal' option.

Next, select the bank account linked to your UPI.

Once the bank is selected, your existing KYC details will be used.

Enter the required details, such as your PAN and email ID.

Then, provide the nominee's name, age, and their relationship to you.

Select your investment option.

You may find options such as 'Active Choice' and 'Auto Choice'.

Enter the initial contribution amount for the NPS.

Complete the payment by entering your UPI PIN.

Upon successful payment, a message confirming the completion of registration will appear.

Once the process is complete, your PRAN (Permanent Retirement Account Number) will be generated, and the details may be sent to your mobile number and email.

What is the minimum investment amount to start an NPS account?

You can start by depositing a minimum of ₹250 as an investment when opening an NPS account. This means you do not need a large sum to begin investing for retirement; you can start with a small amount.