PFRDA expects NPS Tatkal to add around 3 cr subscribers in 2 years: How does the instant pension account facility work?

PFRDA Chairperson S Ramann announced that NPS expects to gain 2-3 crore new subscribers in two years, driven by the new ‘NPS Tatkal’ facility. Here's how it works, minimum investment required and other details. 

Pension Fund Regulatory and Development Authority (PFRDA) Chairperson S Ramann said on Thursday that it expects the National Pension System (NPS) to add around 2-3 crore new subscribers in the next two years.

The growth is expected to be driven by the recently introduced ‘NPS Tatkal’ facility, which aims to make the NPS account opening process faster and easier, the regulatory body's top executive told PTI on the sidelines of NPS Diwas.

The government introduced NPS on January 1, 2004, replacing the old pension scheme. Under the latest scheme's framework, subscribers contribute during their working years, with the corpus invested in market-linked instruments.

At retirement, the accumulated corpus is used to provide retirement benefits, including through annuity-based income. While the NPS is mandatory for central government employees, private sector individuals may also join voluntarily.

NPS Tatkal to boost pension coverage in smaller cities

The NPS Tatkal facility is also expected to expand pension coverage among people living across tier-2 and tier-3 cities.

Ramann said the facility could also encourage more people from the informal sector to join the pension system, helping extend NPS coverage beyond salaried and formal-sector workers.

What is NPS tatkal scheme?

Until now, customers could not directly enrol in NPS or open a new NPS account through the BHIM app or their bank’s UPI app, although they could use these platforms to make subsequent contributions.