Investing in NPS? Here is how to make payments via UPI

The National Pension System or NPS is getting more popular among investors looking to build a retirement corpus. With coronavirus pandemic putting things in perspective, employees have realised the crucial need of preparing early to create a retirement fund for themselves. The scheme allows for systemised savings during the working years, thus inculcating a financial discipline among individuals to save for the future. Regulated and administered by the PFRDA or Pension Fund Regulatory and Development Authority under the PFRDA Act 2013, NPS is a defined, voluntary contribution scheme that is market-linked and managed by professional fund managers.

Investing in this scheme is really easy with number of options to transfer money. The investors can put their money through cheque, online transfers via internet banking or credit card or using even the UPI mode. The last is a new option for NPS subscribers and particularly important as we continue to practice social distancing. 

Here is how to contribute to NPS account via UPI

The subscribers need to generate a UPI ID to complete the transaction. This can be done through your bank's UPI application. You can set a UPI id of your choice on the application and then your bank account needs to be linked to that UPI ID and an MPIN needs to be set up for authorising transactions. Once the ID is ready, go to the NPS website and log in. 

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The subscriber needs to enter the PRAN (Permanent Retirement Account Number) to login to the portal. An OTP is sent to the registered mobile number for verification. Enter the OTP and now you are good to go.

While making the contribution, you need to select UPI as the payments mode. Enter the UPI ID and a notification will be sent on the UPI application for making the payment. The payment will be authorised after entering the MPIN for the second time for authorisation of transaction.