PFRDA allows NPS contribution through UPI
There is good news for the subscribers of National Payment System or NPS. Now they can easily deposit their contribution in NPS account through UPI. The Pension Fund Regulatory and Development Authority (PFRDA) on Wednesday allowed the subscribers of the National Pension System to deposit their contributions directly through the Unified Payments Interface or UPI QR Code.
PFRDA said in a statement that the purpose of this step is to simplify the process of contribution, so that it can be made easier and better for NPS Subscribers. According to the statement, the New Pension Scheme or NPS has long been a reliable saving instrument for those who want to secure their financial planning.
It said that this initiative of PFRDA empowers NPS subscribers to have control over their retirement savings and avail the benefits of Systematic Investment Planning i.e. SIP. Under this new arrangement, NPS subscribers can make their contributions through UPI.
National Pension System i.e. NPS is considered a good option for retirement planning. It is a voluntary and long term investment plan for retirement under the supervision of Pension Fund Regulatory and Development Authority (PFRDA) and the Central Government. NPS was implemented in 2004.
Know who can invest
NPS is a government investment scheme. Earlier it was opened only for government employees. Since 2009, it has been opened for private employees also. Any Indian citizen between 18 years to 70 years, whether a government employee or a private sector employee, can invest under the National Pension Scheme. Apart from this, NRIs are also eligible for this.
After opening the account in New Pension Scheme (NPS), one has to contribute till the age of 60 years or till the maturity period of 20 years.
Apart from tax exemption, there are many benefits on investing in NPS
Apart from the tax exemption available under Section 80C, you can get a rebate of Rs 50,000 (Section 80CCD1B of the Income Tax Act) on investments made in NPS. With this, you will not only be able to save income tax on the investments made every year, but you will also get the benefit of pension after retirement.
