Expect to add nearly 3 crore pension subscribers via NPS Tatkal in 2 years: PFRDA chief

Through the ’NPS Tatkal’ scheme, PFRDA will onboard new NPS subscribers through UPI, beginning with NPCI’s BHIM UPI application. So far, five banks have joined the plan – State Bank of India, HDFC Bank, ICICI Bank, Axis Bank and IDFC FIRST Bank.

”We are actually looking at about 2-3 crore subscribers coming in the next two years. NPS Tatkal will give us the ability to spread the reach of NPS,” Ramann said on the sidelines of NPS Diwas.

Under the NPS Tatkal, an NPS account can be opened through the UPI app by using a KYC-verified bank account and contributions can be made through UPI.

The scheme will also help in expansion of the pension coverage across tier 2 and tier 3 cities.

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Ramann said he expects more people from the informal sector to join using the NPS Tatkal.

So far, customers could not directly enrol in the NPS or open a new NPS account through the BHIM or bank UPI application, but one could make subsequent contributions through it. To formally join the NPS, subscribers had to first register online or offline to obtain a Permanent Retirement Account Number.The government introduced the defined-contribution National Pension System on January 1, 2004, replacing the old pension scheme. Under the NPS, individuals make contributions during their working years, with their retirement corpus invested in market-linked instruments. The accumulated corpus is used to provide retirement benefits.

The NPS is mandatory for central government employees, while private sector individuals may join voluntarily.