Contribute to your NPS account using UPI – Here is how

By: |
October 9, 2020 5:00 PM

Investors can choose from auto and active choice under this scheme, for their allocation of assets while investing in NPS.

National Pension System, NPS, NPS Subscribers, PFRDA, new circular about NPS, you can change nominee online in NPS, know process of online change nominee in NPS, pension regulator, best pension scheme, pension scheme, long term investment schemeWith the rise in digital transactions, people are now widely adopting the UPI mode.

The National Pension System (NPS) is a government scheme that largely focuses on one’s retirement savings. Its popularity is because it is considered one of the best investment tools for retirement planning in India. Both Indian citizens as well as non-resident Indians (NRIs) can open an NPS account.

These investors can choose from auto and active choice under this scheme, for their allocation of assets while investing in NPS. Under the auto choice, an investor can choose from either aggressive, moderate, or conservative funds, which changes, based on the subscriber’s age.

Additionally, if you choose to invest through the active choice, you yourself have to decide how much allocation needs to be put to different asset classes. This allocation, however, will not change with age and remain constant until you decide to change it.

There are various modes of making contributions in the NPS account, like cheque, online transfers using internet banking, or the UPI mode. Experts say with the rise in digital transactions, people are now widely adopting the UPI mode.

Here is how you can make a contribution to the NPS account using UPI:

– Firstly, you will have to activate your UPI to be able to make a contribution using this payment interface. Hence, the main requirement is to have an active UPI ID. If this is not readily available to you, then you will have to download the UPI application of your bank.

– Once a UPI ID of your choice is registered with your linked bank account, you will have to set the MPIN of the UPI ID, which will be needed to authorize UPI transactions.

– Now for making the contribution, you will have to login to your NPS account by visiting the NPS website. You will have to enter your PRAN (Permanent Retirement Account Number) to login to the portal. Then an OTP will be sent to your registered mobile number for verification.

– Next to make the payment via UPI, you will have to choose the payment mode as UPI and enter your UPI ID. For making a contribution, through UPI, you will receive a notification on the UPI application/bank application for making the payment. You can approve the UPI transaction request after entering your MPIN.

Keep in mind, depending on your service provider you may be charged a transaction fee of Rs 10 on the contribution. Hence, the maximum contribution that can be made using the UPI mode is limited to Rs 2,000 in a single transaction, which will include transaction charges, if any.

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