NPS Tatkal Scheme: Big news for government employees. Numerous employee groups have called for the reinstatement of the Old Pension Scheme (OPS) before the 8th Pay Commission, while the Pension Fund Regulatory and Development Authority (PFRDA) is optimistic about attracting 2-3 crore new subscribers to the National Pension System (NPS). Chairperson S Raman anticipates a significant increase in NPS membership over the next two years, possibly due to the introduction of the ‘NPS Tatkal’ service, which aims to streamline and expedite the NPS account opening process.
The NPS, introduced by the government on January 1, 2004, replaced the OPS. Under this revised system, individuals make contributions during their working years, with these funds being invested in market-linked funds.
Key Points:
– The Survey of India (MSA) has urged the reinstatement of OPS under the 8th Pay Commission, along with a demand for a guaranteed pension amounting to 50% of the final salary.
– The Federation of National Postal Organizations has also requested that NPS and UPS covered employees be incorporated into the pension scheme.
– NPS is compulsory for central government employees, while those in the private sector can opt to join voluntarily.
The NPS Tatkal initiative is projected to extend pension coverage to residents in smaller towns, potentially drawing more informal sector workers into the pension system, thus broadening the NPS’s reach beyond formal sector employees.
The ‘NPS Tatkal’ program facilitates new NPS subscribers to enroll through UPI, commencing with the NPCI’s BHIM UPI app. A KYC-verified bank account is necessary, and online payment options are available for deposits.
Steps to Open NPS Account on BHIM App:
1. Launch the BHIM app and navigate to the NPS section under ‘Recharge & Bill Payment.’
2. Input basic details like your date of birth.
3. Select your bank account displayed during the process.
4. Authorize your initial contribution of at least Rs 250 using UPI to generate your PRAN and activate your account.
Raman highlighted that customers of State Bank, ICICI Bank, HDFC Bank, Axis Bank, and IDFC First Bank can presently utilize this facility to establish NPS accounts via the BHIM app. The procedure is entirely digital, eliminating the need for paperwork, and KYC verification is instant. This instant process aims to simplify and expedite the NPS account opening process.