Tatkal NPS On BHIM: Eligibility, Six Supported Banks, Minimum Contribution And Steps To Open An NPS Account
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Eligible Indians aged 18–85 can open an NPS account on BHIM with ₹250 through six supported banks. Read more to check eligibility and registration steps.
Eligible Indian citizens aged 18 to 85 can now open a National Pension System (NPS) account on the BHIM Payments App with a minimum of ₹250 and just three steps. NPCI BHIM Services Limited (NBSL) announced the Tatkal NPS facility in a statement on 14 October. It is open to customers of six banks for now.
The facility was introduced by the Pension Fund Regulatory and Development Authority (PFRDA). It uses KYC details your bank has already verified. That means no branch visit and no fresh paperwork.
Who Can Use Tatkal NPS On BHIM?
Any Indian citizen between 18 and 85 who meets the applicable eligibility rules can sign up. Right now, the facility works for account holders at State Bank of India, HDFC Bank, ICICI Bank, Axis Bank, IndusInd Bank and Bank of Baroda. NBSL says more banks will come on board later.
The first contribution must be at least ₹250. After that, one can add money as little as the NPS account minimum contribution of ₹10, subject to NPS rules.
How Does The Process Work?
The BHIM NPS account opening is quick, and it all happens inside an app most people already use for daily payments. Here is what you do:
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Open the BHIM Payments App and tap the NPS option.
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Enter your date of birth and pick an eligible bank account.
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Pay your first contribution of at least ₹250 through UPI.
Lalitha Nataraj, MD and CEO of NBSL, said the move tackles the first barrier, which is simply getting started. S. Ramann, Chairperson of PFRDA, kept his message short. “Our mantra is simple: Grow rich before you grow old,” he said.
What Is The National Pension System?
NPS is a market-linked retirement savings scheme regulated by PFRDA. The money goes into funds run by pension fund managers, so returns depend on how those investments perform.
What Are The Tax Benefits Of NPS?
NPS contributions offer tax benefits under both tax regimes, but the deductions available differ. Under the old tax regime, personal contributions qualify for a deduction of up to ₹1.5 lakh under Section 80CCD(1), within the overall Section 80C limit, along with an additional deduction of up to ₹50,000 under Section 80CCD(1B).
Under the new tax regime, these deductions on personal contributions are not available. However, you can claim a deduction on your employer’s NPS contribution under Section 80CCD(2). The limit is 14% of your salary for both government and private-sector employees. NPS also comes with withdrawal conditions, so check when you can take the money out and how much tax you may have to pay.
This article is for informational purposes only and should not be considered investment advice from Kotak Neo. For compliance T&C and disclaimers, Visit www.kotakneo.com/disclaimer
Vishwa has spent 10+ years across fintech and FMCG doing what most people miss, connecting the dots, catching trends before they trend, and finding the angle nobody else thought to ask about.
At Kotak Neo, she drives content strategy for neoshorts, Kotak News Desk, and Investing Guide, turning market noise into something worth reading.
When she's not decoding markets, she trades charts for canvases, chasing art, painting, and architecture across cities she's yet to explore.
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