Now you can contribute in NPS using UPI

The National Pension System (NPS) has now made easier payment system as you can pay via the Unified Payments Interface (UPI). However, It will accept payments upto ₹2,000 can be made in a single transaction if you contribute online through NSDL (eNPS).

Customers who are using intermediaries (points of presence or PoPs such as banks that facilitate UPI payments) will be required to pay a minimum transaction charge of ₹10 on ₹2,000. This amounts to a significant 0.5% of the contribution. This is much higher than the 0.1% levied for larger contributions made through net banking in which the minimum charge does not kick in.

You are now able to pay through online mode using NSDL (enps.nsdl.com) or Karvy (enps.karvy.com). You can find the link of the NSDL and Karvy on website of some pension funds too. Go to either website and enter your Permanent Retirement Account Number (PRAN). You will get an OTP on your phone number and email address. Next, select payment gateway SBI ePay and UPI as the payment option. A request will be sent to your UPI app—Google Pay, BHIM, PhonePe, Mobikwik or others. Approve the request by entering two PINs—the first for opening the UPI app and the second MPin for authorizing the payment.

However, take care of the failed transactions. This may be resolved soon by NSDL or Karvy. You can also lodge a complaint online.

If you’ve signed up through an intermediatory as your bank, you’ll pay 0.25% of every contribution. For example, on ₹50,000, you will have to pay charge of ₹125. If you contribute online through net banking, this percentage will fall to 0.1% or ₹50 in the above example. However, there is a minimum limit of ₹10 on PoP charges. This paradoxically increases the charges for UPI payments as the limit is just ₹2,000. As a result, the minimum PoP charge of ₹10 kicks in on every contribution rather than the percentage limit of 0.1% (which would be ₹2). This takes up the charge to a significant 0.5% of your contribution. There is an additional GST of 18% as well, pushing up the charge to ₹11.8.