UPI has made sending and receiving money easier than ever.
But now, its use may go far beyond simple payments.
A major update is reportedly in the works that could allow users to withdraw Provident Fund (PF) money through UPI.
Along with this, users may also be able to transfer money to their PF accounts using UPI-based services.
Another big development is that opening a National Pension System (NPS) account could soon become much simpler through the BHIM app.
What Is the New Plan?
According to a Financial Express report, the BHIM app is preparing to offer the facility to open NPS accounts directly from the platform.
The biggest advantage for users will be a smoother account-opening process.
Since banks already have customers’ KYC details, users may not have to go through repeated verification steps.
The entire process is expected to be digital, making it quicker and more convenient for people who want to start investing in a pension scheme.
Why Is BHIM Expanding Its Services?
Industry experts say BHIM no longer wants to be limited to just UPI payments.
The platform is reportedly looking to add services such as pension products, investments, and other financial solutions. This would bring BHIM closer to the model followed by popular apps like Google Pay, PhonePe, and Paytm, which offer multiple financial services on a single platform.
Experts quoted in the report said that the Pension Fund Regulatory and Development Authority (PFRDA) is working with BHIM to enable easy NPS account opening by using the KYC information already available with the user’s bank.
Has the Service Started Yet?
Not yet. The facility has not been officially launched so far.
However, reports suggest that the National Payments Corporation of India (NPCI) is working on the project and may roll it out on a larger scale in the near future.
Once launched, it could make pension-related services more accessible for millions of users across the country.
What Is NPS and Why Is It Important?
The National Pension System (NPS) is a government-backed retirement savings scheme.
Under this scheme, individuals invest regularly during their working years.
After retirement, the accumulated amount can be received as a lump sum, a monthly pension, or a combination of both.
NPS is considered a popular option for long-term retirement planning because it helps create a steady source of income after retirement.
