The Pension Fund Regulatory and Development Authority (PFRDA) has launched a web application to provide easy access to the National Pension System (NPS) for subscribers. The app, developed by Zerodha Broking Limited, is aimed at widening financial inclusion and boosting NPS.
What is NPS?
NPS is a voluntary, defined contribution retirement savings scheme that allows subscribers to create a pension corpus and receive annuity payments after retirement. NPS is regulated by PFRDA and offers multiple investment options and fund managers to choose from. NPS also provides tax benefits to subscribers under various sections of the Income Tax Act.
How does the app work?
The app, which can be accessed through the Zerodha website or mobile app, offers seamless access to NPS to a wider subscriber base. The app allows users to open an NPS account online, make contributions, view their portfolio, switch funds, change personal details, download statements and more. The app also provides information and guidance on NPS features, benefits and rules.
Why is the app important?
The app is part of PFRDA’s efforts to foster innovation and inclusivity within the NPS architecture, particularly through its engagement of fintech entities as Point of Presence (PoP). PoP are intermediaries that facilitate the opening and maintenance of NPS accounts. By partnering with Zerodha, one of the largest online brokers in India, PFRDA hopes to expand the reach and accessibility of NPS to a younger and tech-savvy audience.
PFRDA Chairperson Deepak Mohanty said that there is merit in joining NPS at a young age to harness the benefit of compounding. He also said that NPS provides continuity to retirement saving account irrespective of one’s employment status and is available for non-resident Indians (NRIs).
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