NPS Account Opening Through BHIM App: Eligibility, Minimum Contribution And Steps

Opening a National Pension System (NPS) account through the BHIM Payments App now requires three steps. The Tatkal NPS allows eligible Indian citizens to complete registration digitally, without visiting a bank branch or submitting fresh KYC documents.

The facility uses existing bank-verified Know Your Customer (KYC) details and requires users to make their first contribution through the Unified Payments Interface (UPI). It is currently available to customers of six banks.

What Is Tatkal NPS

Tatkal NPS is a facility introduced by the Pension Fund Regulatory and Development Authority (PFRDA) to simplify NPS account registration. NPCI BHIM Services Limited (NBSL), a wholly owned subsidiary of the National Payments Corporation of India (NPCI), has made the facility available through the BHIM Payments App.

Applicants have to provide their Date of Birth, an eligible bank account and make the initial contribution via UPI. During registration, it does not require new documentation, relying instead on KYC data from existing bank records.

Eligibility Criteria For Opening An NPS Account Through BHIM

Indian citizens aged 18 to 85 years can apply through the facility, subject to applicable NPS rules. Applicants also need a bank account supported by the service and must complete the initial contribution to finish registration.

Which Banks Support Tatkal NPS

Tatkal NPS is currently available to customers of State Bank of India, HDFC Bank, ICICI Bank, Axis Bank, IndusInd Bank and Bank of Baroda. Additional banks are expected to join the facility in the future. Users can check the BHIM app to confirm whether their bank is supported before beginning registration.

Minimum Amount Required

To open an NPS account, the applicants have to make a minimum contribution of Rs 250 via the Tatkal NPS. The subsequent contributions can begin at Rs 10, keeping in mind NPS guidelines.

NPS is a retirement savings scheme regulated by PFRDA. Pension fund managers invest in market-linked instruments, which means that returns are not guaranteed. The retirement corpus is dependent on multiple factors, such as the amount invested, investment performance and withdrawal rules that are applicable.

The eligible subscribers of the NPS scheme can also avail of the tax benefits as applicable to their NPS account and tax regime.

How To Open An NPS Account Through BHIM

Users can proceed by opening the BHIM Payments App and clicking on the NPS option. They have to enter their date of birth and select a suitable bank account. The last step is to make the initial contribution of Rs 250 or more using UPI.

Once registered, subscribers can begin to save money for retirement via NPS. They must check the investment options, withdrawal conditions and relevant tax provisions of the scheme before investing.