NPS Tatkal account opening via UPI has begun, allowing eligible customers to open a National Pension System account directly through a UPI app.
The new facility has been introduced by the Pension Fund Regulatory and Development Authority to make digital pension enrolment easier.
The facility has initially been launched through NPCI’s BHIM UPI app.
Customers can use a KYC-verified bank account to complete the account-opening process and also make NPS contributions through UPI.
NPS Tatkal account opening via UPI
The new system is aimed at making NPS more accessible, particularly in tier 2 and tier 3 cities.
PFRDA expects the simpler digital onboarding process to encourage more people, including those working in the informal sector, to join the pension system.
At present, five banks are connected with the facility: State Bank of India, HDFC Bank, ICICI Bank, Axis Bank and IDFC FIRST Bank.
Customers whose banks support the facility can use the linked and KYC-verified bank account for the digital process.
How the new NPS facility works
Under the new arrangement, the KYC information already available with the customer’s bank can be used during NPS onboarding.
This reduces the need to go through a separate registration process before opening the pension account.
Previously, a person generally had to complete the NPS registration process online or offline and obtain a Permanent Retirement Account Number, known as PRAN, before formally joining the system.
Existing subscribers could use UPI for subsequent contributions, but new account opening was not directly available through UPI apps.
The new facility brings account opening and contribution payments closer to the same digital payment system that many customers already use.
This is expected to make the initial enrolment process more convenient for people who prefer digital banking.
PFRDA sets target for new NPS subscribers
PFRDA Chairperson S. Ramann said the regulator is targeting around 2 to 3 crore new NPS subscribers over the next two years.
The expansion is expected to focus particularly on smaller cities and people outside the traditional government-sector workforce.
The regulator is also looking at digital onboarding as a way to expand pension coverage among informal-sector workers.
The NPS Tatkal initiative is part of this broader effort to make the pension system easier to access.
What is the National Pension System
The National Pension System is a contribution-based retirement savings scheme.
It was introduced on January 1, 2004, replacing the earlier pension arrangement for central government employees.
Under NPS, subscribers contribute during their working years, while the accumulated retirement savings are invested through market-linked investment options.
The corpus is intended to provide retirement benefits.
For central government employees, NPS is mandatory under the applicable rules, while people working in the private sector can voluntarily join the system.
The latest digital initiative is intended to make the enrolment process simpler for eligible citizens.
The NPS Tatkal facility therefore marks a shift towards UPI-based pension onboarding, with the aim of bringing more people into the formal retirement savings system through a familiar digital payment route.
