PhonePe in collaboration with Bharat Connect has launched a new feature that allows contributions to the National Pension System (NPS) via its platform. This development, announced on November 6, 2024, is set to transform the way millions of users contribute to their NPS accounts making the process seamless, secure, and straightforward.

The NPS is a highly effective tax-saving instrument for personal retirement planning. It not only offers substantial tax savings but also serves as a retirement corpus, thereby helping users secure their financial future. Until this development, contributions towards NPS accounts were limited to the websites of PFRDA, NSDL, CAMs, KFintech, and Banks.

The integration of this feature on the PhonePe app will now allow users to contribute conveniently, extending the benefits of digital payments to previously underserved populations. Noopur Chaturvedi, CEO, NPCI Bharat BillPay Limited, emphasized the significance of this development, stating, Integrating the NPS category on the Bharat Connect platform is a significant step towards enabling individuals to manage their investments for retirement planning seamlessly.

Sonika Chandra, Chief Business Officer – Consumer Payments at PhonePe expressing her excitement about the partnership with Bharat Connect. She highlighted the potential for growth and the role of innovative partnerships in making the process of payments and savings much more simple and inclusive for all.

To avail this feature, users can navigate to the ‘National Pension System’ under the ‘Financial Services and Taxes’ section on the PhonePe app. After entering details like the 12-digit PRAN or 10-digit mobile number, date of birth, tier, and contribution amount, users can review the NPS investment details and complete the payment using their preferred mode.

This development comes in the wake of other initiatives aimed at enhancing the utility and convenience of making NPS contributions. For instance, the NPS Vatsalya scheme allows parents or guardians to build a retirement corpus for their children up to the age of 18. The scheme has been lauded for its potential to inculcate savings discipline and ensure substantial corpus growth over the long term.