The National Pension System (NPS) Tatkal facility is now available on PhonePe and BHIM, allowing eligible users to open a pension account through a three-step digital process. The facility offers a simpler route to start retirement savings through payment apps, reducing the effort involved in registering for the scheme.
The Pension Fund Regulatory and Development Authority (PFRDA) announced the availability of the facility in a post on X on 6 October. The move brings NPS account opening to widely used digital payment platforms, potentially making it easier for first-time investors to begin planning for retirement. However, users should check their bank’s eligibility and understand the scheme’s investment risks and withdrawal rules before opening an account.
How to open an NPS account through PhonePe or BHIM
PFRDA’s announcement outlines a three-step process for opening an NPS account through the supported payment apps. Users can access the NPS Tatkal facility, enter the required details and select an eligible bank account, and complete the initial contribution through UPI.
Once the details and payment are successfully verified, the subscriber can obtain a Permanent Retirement Account Number (PRAN), which serves as the unique identification number for the NPS account.
Users should check whether the NPS Tatkal option is available on their app and whether their bank is supported before starting the process. Not every bank account linked to a payment app will necessarily be eligible for onboarding.
What is the minimum contribution, and what should investors know?
The minimum initial contribution reported for NPS Tatkal is ₹250. Users should verify the amount and applicable requirements displayed during registration before making the payment.
Opening an account through a payment app does not change how NPS investments work. Contributions are invested in market-linked instruments, and returns depend on the performance of the selected pension fund and the investment options chosen by the subscriber. NPS is designed for long-term retirement savings, so investors should assess their investment horizon and risk appetite before contributing.
NPS offers two main account types. Tier I is the primary retirement account, with withdrawals subject to prescribed conditions. Tier II is an optional investment account available to eligible Tier I subscribers and offers greater withdrawal flexibility.
Investors should also distinguish between opening an account and making subsequent contributions. Digital payment platforms provide a convenient route for transactions, but account holders must still follow NPS rules governing investments, withdrawals and exit from the scheme.
For people who have not yet started saving for retirement, NPS Tatkal offers another digital entry point. Before signing up, they should confirm the facility’s availability on their preferred app, check bank eligibility and understand the scheme’s long-term conditions.