NPS Tatkal now on PhonePe, BHIM: How to open an NPS account via UPI

Opening a National Pension System (NPS) account is now simpler for users of UPI apps, with the Pension Fund Regulatory and Development Authority (PFRDA) making its NPS Tatkal facility available on BHIM and PhonePe.

PFRDA, in a post on X on October 6, said, “Tatkal NPS: Now on BHIM and PhonePe. If you can pay with one tap, you can plan your retirement with one tap too.”

The regulator said Tatkal NPS is now available on BHIM and PhonePe, allowing users to open an NPS account and contribute instantly through UPI. It outlined three steps: opening BHIM or PhonePe, entering details and selecting a bank account, and making the contribution through UPI.

Meanwhile, PFRDA Chairperson S Ramann has said the regulator is targeting around 2-3 crore new NPS subscribers over the next two years. The initiative is also expected to help expand pension coverage in tier-2 and tier-3 cities and among people working in the informal sector, PTI reported.

What is NPS Tatkal?

The facility is not a separate pension scheme. It is a digital route for opening an NPS account and making contributions.

PFRDA's existing NPS framework allows eligible Indian citizens, NRIs and OCIs between 18 and 85 years of age to voluntarily subscribe to NPS, subject to the applicable KYC requirements.

How to open an NPS account through PhonePe or BHIM

Open the BHIM or PhonePe app.

Enter the required details as prompted during the NPS Tatkal onboarding process.

Select your bank account for the NPS account-opening process.

Complete the required verification and onboarding formalities.

Make the NPS contribution through UPI.

The exact screens, prompts and information requested may vary between PhonePe and BHIM and depending on the participating bank. Users should follow the instructions displayed in the respective app.

What is required for NPS Tatkal?

NPS Tatkal uses the KYC details associated with the user's bank account to simplify the onboarding process.

Under the regular NPS All Citizen Model, subscribers must meet the applicable eligibility and KYC requirements. PFRDA states that eligible individuals can voluntarily subscribe to NPS between the ages of 18 and 85 years.

What happens after opening an NPS account?

Once the NPS account is opened, the subscriber receives a Permanent Retirement Account Number (PRAN), which is the unique identification number for the NPS pension account.

The NPS account is portable, meaning the PRAN remains the same even if the subscriber changes employment, sector or location.

NPS contributions are invested in market-linked instruments according to the investment choices selected by the subscriber. Returns are therefore market-linked and are not guaranteed.

Why is PFRDA pushing NPS Tatkal?

PFRDA is looking to expand the reach of NPS beyond existing subscriber segments. The regulator expects digital onboarding through UPI to make it easier for people in smaller cities and towns and workers in the informal sector to start saving for retirement.

As per a report in PTI, PFRDA is targeting around 2-3 crore additional NPS subscribers over the next two years.

The launch on PhonePe and BHIM adds NPS onboarding to platforms that millions of Indians already use for digital payments.

What investors should know

NPS Tatkal makes the process of starting an NPS account more convenient, but it does not change the underlying nature of NPS.

NPS is a long-term, defined-contribution retirement savings system. Contributions are invested in market-linked assets, and the eventual returns depend on the investment choices and market performance.

Before opening an NPS account, investors should understand the applicable investment options, charges, withdrawal and exit rules and tax provisions.

For eligible users, NPS Tatkal provides a simpler digital route to begin retirement savings through a familiar UPI ecosystem.