Pension account to be opened in just three clicks and contributions to be deposited via UPI

The Pension Fund Regulatory and Development Authority (PFRDA) has launched a new initiative called 'NPS Tatkal', which has made the process of opening a pension account extremely simple. During a leadership event organised in Mumbai, PFRDA Chairman S. Raman stated that customers will be able to open a pension account in just three clicks using their existing banking and UPI systems. The KYC records of banks will be used in this process, so users will not need to fill in their details again, and the onboarding process will be completed in just 10 seconds.

According to a report by TV9 Gujarati, the process of contributing to NPS via UPI has also been simplified under this new facility. Now, customers can deposit small amounts, such as ₹10, daily or hourly as per their wish. No transaction charges will be applicable on these transactions. However, S. Raman clarified that an initial deposit of at least ₹250 is mandatory to start an NPS account. He added that more important than the amount is the habit of saving and developing financial discipline in an individual.

PFRDA's primary objective is to extend pension coverage to low-income individuals, gig workers, and workers in the unorganised sector. S. Raman noted that for people who do not have a fixed salary, the availability of cash is crucial, which makes saving difficult. Therefore, it is necessary to bring flexibility into the process of saving for retirement. The regulator hopes that 4 to 5 crore new subscribers will join this scheme in the next 2 to 3 years.

The organisation has planned to reach a pension fund target of ₹100 lakh crore by the year 2040. According to information provided by ANI, S. Raman stated that given the current growth rate, this target will be naturally achieved by 2040, but PFRDA wants to achieve this target before the stipulated time through digital platforms and increasing awareness. He emphasised that these efforts must continue and should not be a one-time initiative.

Linking the growth of the pension fund with the country's economic development, the Chairman stated that, like other countries, a large portion of the pension fund in India can also be used as investment in infrastructure facilities. This will provide two benefits: on one hand, a security cover will be prepared for employees' old age, and on the other hand, this amount will be used as investment in national projects such as roads and various development schemes, contributing to nation-building. This digital initiative has been linked with the government's broader goal of financial inclusion.