Tech and payments platform PhonePe has launched ‘Tatkal NPS’ on its platform, in partnership with leading banks and lenders to enable micro-investments towards retirement planning for users. The initiative enables millions of users to open a government-backed pension account with micro-contribution starting at ₹250.
It enables 100% digital, paperless National Pension System (NPS) account opening in three steps and eliminates the need for fresh document uploads or KYC, instantly generating a Permanent Retirement Account Number (PRAN).
PhonePe’s Tatkal NPS facility: How it works?
Tatkal NPS caters to a number of users, including first-time planners, millennials, and Gen-Z. Developed by the Pension Fund Regulatory and Development Authority (PFRDA), the facility enables seamless re-use of existing Bank KYC through a secure, one-time OTP authentication.
The same framework enables PhonePe to provide its users with seamless, paperless onboarding experience, allowing them to create a PRAN in minutes. The company said that by lowering the investment threshold to ₹250, it can tap into India’s positive demographic dividend and enable the younger cohort to start building their pension and retirement security at an early stage.
“Specifically, this offering serves as a crucial, disciplined retirement vehicle for cohorts such as gig economy workers, independent freelancers, and small business owners, who often lack access to mandatory corporate retirement schemes.” it said.
How users can directly access, book Tatkal NPS on app
- Open the PhonePe app and type NPS in the search bar and select the “National Pension Scheme” option.
- Tap ‘Start Pension Account Journey’ and select your preferred linked bank account.
- Authenticate the bank account instantaneously via a secure bank OTP.
- Enter the initial contribution amount (starting at ₹250) and complete the secure payment via PhonePe UPI to instantly generate your PRAN.
Please note that when opening your NPS account, a standard one-time onboarding fee of ₹100 plus ₹18 GST (Cumulative ₹118) is to be paid, as mandated by regulations.
What to do if payment fails or stays pending?
- Failed payment: If your initial contribution fails, you will be prompted to retry the payment using your preferred bank account, the apps FAQ section noted. The reason could be network problems, entering incorrect UPI PIN, insufficient funds in your account, etc. You can retry the payment using your preferred bank account, it added.
- Pending payment: This means that PhonePe is waiting for your bank to confirm the transaction, the FAQ added. If any money was debited from your account and the payment does not go through, the amount will be refunded automatically within 5-7 working days, it said.
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