NPS Tatkal scheme via UPI will now allow people to open a National Pension System account directly through a UPI app.
The Pension Fund Regulatory and Development Authority (PFRDA) launched the facility on October 1, aiming to expand pension coverage, particularly in smaller cities and among informal-sector workers.
The facility has initially been introduced through the National Payments Corporation of India’s BHIM UPI app.
PFRDA Chairman S. Ramann said the initiative is expected to help expand the reach of NPS in Tier 2 and Tier 3 cities.
The regulator is targeting around 2 to 3 crore new NPS subscribers over the next two years.
The initiative is also expected to make it easier for people from the unorganised sector to join the pension system.
NPS Tatkal scheme via UPI
Under the new facility, eligible users can open a new NPS account directly through a UPI platform.
Five banks are currently connected to the facility: State Bank of India, HDFC Bank, ICICI Bank, Axis Bank and IDFC First Bank.
The new process changes how people can begin their NPS journey.
Earlier, customers could not open a new NPS account directly through BHIM or a bank’s UPI app.
Existing NPS subscribers could use UPI for making contributions, but a new subscriber had to complete the registration process online or offline and obtain a Permanent Retirement Account Number, or PRAN.
 What is the NPS scheme?
The National Pension System is a contribution-based pension system launched by the government on January 1, 2004.
Under NPS, subscribers contribute during their working years, while their retirement savings are invested in market-linked investment options.
The accumulated savings are used to provide retirement benefits according to the applicable NPS rules.
NPS is mandatory for central government employees covered under the system, while people working in the private sector can voluntarily join it.
PFRDA regulates the National Pension System.
For individual subscribers, NPS provides pension accounts designed for long-term retirement savings.
Why the new UPI facility matters
The NPS Tatkal scheme via UPI is intended to make account opening more accessible by bringing the process directly to a platform that many people already use for digital payments.
PFRDA has particularly highlighted the potential to increase pension coverage in Tier 2 and Tier 3 cities.
The regulator is also looking to bring more people from the unorganised sector into the pension system.
With the new facility, the process of opening an NPS account is being expanded beyond the earlier registration route.
The initiative forms part of PFRDA’s broader effort to increase the number of people covered by NPS over the coming years.
