BHIM Payments app users can open NPS account via Tatkal facility: Eligibility, minimum contribution

Eligible users of the BHIM Payments App can now open a National Pension System (NPS) account through the Tatkal NPS facility without visiting a bank branch or submitting fresh paperwork, according to NPCI BHIM Services Limited (NBSL).

The facility, introduced by the Pension Fund Regulatory and Development Authority (PFRDA), uses existing bank-verified KYC details to simplify the account-opening process.

Users need to enter their date of birth, select an eligible bank account and make an initial contribution through the Unified Payments Interface (UPI).

Tatkal NPS is currently available on BHIM for customers of State Bank of India, HDFC Bank, ICICI Bank, Axis Bank, IndusInd Bank and Bank of Baroda. More banks are expected to be added later, NBSL said in a statement on October 14.

Who can open an NPS account through BHIM?

Indian citizens aged 18 to 85 years who meet the applicable eligibility requirements can open an NPS account through the facility.

The minimum initial contribution is ₹250. Subsequent contributions can be made from ₹10, subject to applicable NPS rules.

How to open an NPS account through BHIM

Users can follow these steps to open an account:

• Open the BHIM Payments App and select the NPS option.
• Enter the date of birth and select an eligible bank account.
• Make the first contribution of at least ₹250 through UPI.

What is the National Pension System?

The National Pension System is a market-linked retirement savings scheme regulated by PFRDA. Contributions are invested in funds managed by pension fund managers, and returns depend on the performance of the underlying investments.

NPS offers tax benefits subject to the applicable provisions of the Income Tax Act and the tax regime chosen by the subscriber. Investors should review the scheme’s investment risks, withdrawal rules and tax treatment before opening an account.