PFRDA launches NPS Tatkal, letting eligible users open NPS account and pay via BHIM UPI app

For those who want to be free of money worries after retirement, many people start planning investments early. The National Pension System (NPS) can be one option for them. To make opening an account easier still, the Pension Fund Regulatory and Development Authority (PFRDA) has introduced the NPS Tatkal facility.

Through this facility, eligible customers can open an NPS account from home using the BHIM UPI app. Notably, the first investment amount can also be paid through UPI along with registration.

To use the facility, the customer's bank account must be linked to it. According to available information, eligible customers of SBI, HDFC Bank, ICICI Bank, Axis Bank and IDFC First Bank are getting the facility. The process may use KYC details the bank already holds, so the paperwork for opening an account is likely to be easier than before. Even so, customers should confirm before registering whether their bank is eligible for the facility.

To open an account, first open the BHIM UPI app on the mobile phone and log in. Go to the Financial Services or Investment section of the app and choose NPS Tatkal from the options. Then select the eligible bank account linked to UPI.

Next, fill in details such as the PAN card number and email ID as required. Enter the nominee's name, age and relationship to the account holder. Choose the right option from the available investment options, enter the initial deposit and complete the payment by entering the UPI PIN.

Once the payment is successful, registration will be complete. A Permanent Retirement Account Number (PRAN) may then be generated. Details of this number may be sent to the registered mobile number or email.

According to the information provided on the minimum investment, the initial investment when opening an NPS account can be as low as Rs 250. This means a large sum is not needed to start saving for retirement, and the investment can be decided according to one's financial situation. Even so, the minimum amount and the applicable conditions should be confirmed with the official NPS channels or the bank concerned.

While investing in NPS, options such as Active Choice and Auto Choice may be available. Under Active Choice, the investor is free to choose the asset allocation from the available options. Under Auto Choice, the split of the investment is decided automatically according to age and set rules.

One important point: NPS is a market-linked investment scheme, so returns are not fixed. Before opening an account, it is essential to understand the scheme's terms, risks and withdrawal rules. NPS Tatkal may make registration easier, but choosing the right investment option is equally important.