BHIM App Introduces Tatkal NPS, Lets Users Open Pension Accounts Through UPI

NPCI BHIM Services Limited (NBSL), a wholly owned subsidiary of the National Payments Corporation of India (NPCI), on Wednesday announced the launch of Tatkal NPS on the BHIM Payments App, enabling eligible users to open a National Pension System (NPS) account through UPI in just three steps.

Introduced by the Pension Fund Regulatory and Development Authority (PFRDA), the facility aims to simplify pension account opening by eliminating the need to visit a branch or submit fresh paperwork. The process relies on existing bank-verified Know Your Customer (KYC) details.

To open an account, users need to enter their date of birth, select an eligible bank account and make their first NPS contribution through UPI.

The facility is currently available to customers of six banks: State Bank of India, HDFC Bank, ICICI Bank, Axis Bank, IndusInd Bank and Bank of Baroda. NBSL said more banks would be added to the service in the coming months.

Lalitha Nataraj, Managing Director and CEO of NBSL, said the initiative would build on UPI's widespread adoption to make pension products more accessible to Indians.

"UPI has already become a daily financial behaviour for hundreds of millions of Indians. The next opportunity is to improve access to products such as NPS," she said.

Nataraj added that Tatkal NPS addresses the initial hurdle of opening a pension account and expands BHIM's role beyond facilitating transactions to supporting pension account onboarding.

The National Pension System is a retirement savings scheme regulated by PFRDA. Contributions are invested in market-linked funds managed by regulated pension fund managers, with tax benefits available subject to applicable rules. As returns are market-linked, the value of investments can fluctuate.

PFRDA Chairperson S. Ramann said the initiative could make retirement planning more accessible by allowing eligible citizens to open pension accounts through a familiar digital payment platform.

"UPI transformed the way India pays; Tatkal NPS can transform the way India prepares for retirement," Ramann said, adding that the aim was to take pension savings to people across cities, towns and villages.

Under the facility, eligible Indian citizens aged between 18 and 85 can open an NPS account through the BHIM Payments App with a minimum initial contribution of Rs 250. Subsequent contributions can be made from Rs 10, subject to applicable NPS rules.

By integrating pension account opening into a widely used digital payments platform, Tatkal NPS seeks to reduce procedural barriers and encourage more people to begin saving for retirement. Its reach will depend in part on the expansion of participating banks and greater awareness of the benefits and risks associated with long-term, market-linked pension investments.