Sivasubramanian Ramann, Chairperson of the Pension Fund Regulatory and Development Authority (PFRDA), has announced NPS Tatkal, a digital route intended to expand access to the National Pension Scheme (NPS) through UPI providers.

Under the proposed process, a user will be able to open an NPS account and make contributions through the UPI system. The account-opening journey is expected to take 3 clicks, while existing KYC details linked to the user's bank account will be used instead of requiring extensive new information.

Digital expansion of NPS

Ramann said the broader aim behind the new schemes is to achieve scale in NPS. He pointed to the experience of UPI and said digital access is the way to extend the pension scheme across the country.

PFRDA expects NPS Tatkal to encourage crores of accounts to be opened. The regulator is looking at approximately 2-3 crore subscribers joining over the next 2 years. Ramann described this target as highly achievable, citing the integration of the largest banks with NPS Tatkal.

The focus includes the informal sector, where PFRDA is seeking wider participation in pension savings. Banks with a massive number of savings bank account holders under the Jan Dhan scheme are among those integrated with the new facility, according to Ramann.

How the account process is expected to work

The proposed digital route combines account opening and contributions in the UPI system. Users will not need to enter extensive details because the KYC already held by their bank account will be used.

The initiative is designed around a short account-opening process:

  • Users can open an NPS account through a UPI provider.
  • Contributions can also move through the UPI system.
  • Existing bank-account KYC will be used.
  • The process is expected to take 3 clicks.

What NPS offers savers

Ramann described NPS as a product that allows only partial liquidity. This structure is intended to ensure that the money saved remains available for the long run.

The planned expansion therefore combines easier digital access with a long-term savings feature. PFRDA's expected increase in participation is particularly focused on bringing more people from the informal sector into NPS.

Conclusion

NPS Tatkal is being positioned as a UPI-based way to simplify NPS account opening and contributions. PFRDA expects the 3-click process and bank-linked KYC to support 2-3 crore new subscribers over the next 2 years, with informal-sector workers a key focus.

Frequently Asked Questions

Q. What is NPS Tatkal?

NPS Tatkal is a digital facility intended to let users open NPS accounts and make contributions through UPI providers.

Q. How many clicks will the process take?

The account-opening process is expected to take 3 clicks.

Q. Will users need to enter extensive details?

No. Existing KYC details in the user's bank account will be used.

Q. How many subscribers does PFRDA expect?

PFRDA is looking at approximately 2-3 crore subscribers over the next 2 years.

Q. Which workers are a special focus?

The informal sector is a special focus for the NPS expansion.

Q. Does NPS allow full liquidity?

NPS allows only partial liquidity, keeping the saved money available for the long run.