UPI has become the preferred option for making digital payments in India. But now, its use may go far beyond sending and receiving money.
A new development suggests that UPI users could soon access pension-related services as well.
The BHIM app is reportedly working with the Pension Fund Regulatory and Development Authority (PFRDA) to make opening National Pension System (NPS) accounts easier and more convenient.
What Is the New Plan?
According to a Financial Express report, users may soon be able to open an NPS account directly through the BHIM app.
The biggest advantage is that customers may not have to go through the KYC process again.
Instead, the app could use the KYC details already available with the bank linked to the user’s BHIM account.
This would make the entire account-opening process digital, faster, and much simpler for users.
Why Is BHIM Expanding Its Services?
Experts quoted in the report said that BHIM no longer wants to be limited to UPI payments alone.
The platform is looking to add services such as pensions, investments, and other financial products, similar to what apps like Google Pay, PhonePe, and Paytm already offer.
The goal is to turn BHIM into a broader financial services platform where users can access multiple services from a single app.
How Will It Benefit Users?
If launched, the new feature could make opening an NPS account much easier.
Users would be able to complete the process online without repeated document verification.
Since the KYC information is already available with the bank, onboarding could become quicker and more seamless.
This would save time and encourage more people to start planning for their retirement.
Has the Service Started Yet?
At present, this facility has not been officially launched.
However, reports suggest that NPCI and PFRDA are working on the project and may roll it out on a larger scale in the near future.
What Is NPS?
The National Pension System (NPS) is a government-backed retirement savings scheme.
Under this scheme, individuals invest money regularly during their working years.
After retirement, the accumulated corpus can be withdrawn partly as a lump sum, while the remaining amount can provide a regular pension income.
It is considered one of the popular long-term investment options for retirement planning in India.
