NPS Account: Open an NPS account in minutes via the BHIM app; PF funds will be transferred directly to the pension account..

Significant changes are underway to make the country's pension system simpler, more digital, and more flexible. Soon, the general public will be able to open a National Pension System (NPS) account directly via the BHIM app on their mobile phones. Additionally, work is in progress to enable the transfer of funds from the Employees' Provident Fund (EPF) to the NPS. If implemented, these measures will make retirement planning far easier and offer a wider range of options for millions of salaried employees and gig workers.

**BHIM App to Become a New Pension Platform**
Under this new initiative, the National Payments Corporation of India (NPCI) and the Pension Fund Regulatory and Development Authority (PFRDA) are collaborating to facilitate NPS account opening through the BHIM app. A key feature is that users will not need to undergo a separate KYC process; instead, the existing KYC details linked to their bank accounts will be utilized. This will make the entire process extremely fast and paperless, potentially making opening a pension account as simple as sending money via UPI today.

**Plans to Transfer Funds from EPS to NPS**
Meanwhile, a proposal regarding portability—specifically, the transfer of funds—between the EPS and NPS is also under discussion. Currently, EPS and NPS operate as distinct systems without a facility for direct fund transfers. However, if the government amends the law in this regard, employees will be able to shift their accumulated EPS funds to the NPS. This will give subscribers the freedom to choose between remaining in the fixed-interest EPS or opting for the NPS, which offers market-linked returns.

**Changes Made to the NPS**
In fact, several major reforms have been introduced in recent years to make the NPS more attractive. Equity investment of up to 100% is now permitted, increasing the potential for better long-term returns. Furthermore, the NPS account can be extended beyond the age of 60 up to the age of 85, allowing investments to continue even after retirement.

**Who Will Benefit from These Changes?**

Gig workers, small business owners, and those in the unorganized sector—who have historically lacked access to benefits like pensions—stand to gain the most from this transformation. Integrating pension services with major digital platforms like BHIM could rapidly expand outreach, enabling more people to save for their future.

Disclaimer: This content has been sourced and edited from Dainik Jagran. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.