Open a Pension Account for Just ₹250: PhonePe Launches Instant NPS – How Does It Work?

PhonePe has introduced a facility to open an NPS (National Pension System) account. Users can begin investing with as little as ₹250. If KYC has already been completed, there is no need for re-verification. A one-time account-opening fee of ₹100 applies.

Digital payment app PhonePe has launched a new feature designed for those looking to start saving for retirement. Eligible users can now open an NPS account directly through the app, with an initial contribution starting at ₹250.

The process does not require re-uploading documents or undergoing new KYC verification, as the system will utilize the KYC information already available with the user's bank.

Who is eligible to open an NPS account?

To avail of this facility, an individual must be between 18 and 85 years of age. Additionally, they must hold an active Indian savings bank account that has already undergone the KYC process and is linked to a registered mobile number. NRIs, OCI cardholders, and minors are not eligible to open an account through this facility.

What is PhonePe’s new feature?

On October 27, 2026, PhonePe announced the launch of a digital facility for opening an NPS account, aiming to simplify the start of retirement planning. Through this feature, eligible customers can complete the entire account-opening process from the comfort of their homes using their mobile phones.

The NPS is a pension savings scheme backed by the central government, allowing individuals to build a retirement fund through long-term investment. PhonePe’s new feature eliminates the hassle of submitting physical paperwork to open an account.

Account-opening fees and investment rules

While the initial contribution for this facility is ₹250, a one-time account-opening fee of ₹100 also applies. Users can subsequently make additional contributions of at least ₹10, as per their convenience. There is no requirement to invest at regular, fixed intervals.

A default investment option may be applied initially; therefore, it is essential to understand the investment rules, withdrawal conditions, and associated risks before opening an account. Returns in the NPS may depend on market-linked investment options; it should not be viewed as a scheme offering guaranteed returns.

Will retirement planning become easier?

This initiative by PhonePe is a step toward simplifying access to pension savings through a digital platform. The low initial contribution requirement and the use of existing KYC data can be helpful for those who wish to begin preparing for retirement with smaller amounts. However, it is important to understand the scheme in the context of your own needs and financial situation before investing.

How can you open an account on PhonePe?

The account-opening process is entirely digital. Users need to follow these steps:

Select the option to open an NPS account within the PhonePe app.
Enter your date of birth and complete the necessary consents and declarations.
Select one of your linked bank accounts and verify it using an OTP sent by the bank.
Make an initial contribution of at least ₹250 via UPI.
Once the contribution is successful, a Permanent Retirement Account Number (PRAN) is issued to the user.