How to invest in NPS through Paytm Money App?


Paytm the digital mobile wallet company has launched its new product Paytm money launched in September last year. Users can by mutual funds using the Paytm money app. Now extending its investment feature, users can also invest in NPS through payment money app.

The Pension Fund Regulatory and Development Authority (PFRDA) has given permission of Paytm for providing Services.

What is National Pension Scheme (NPS)?

National Pension Scheme (NPS) is a Pension Scheme for Indian citizen (Between age 18 to 60 Years). It has two Accounts Tier 1 and Tier 2. The main difference between the accounts is that You cannot withdraw the entire money from Tier-I account till your retirement. User can invest a minimum of Rs. 500 t0 1,50,000 in a year.

Pension fund you can invest through PayTm Money app for NPS?

There are lots of major pension fund managers are available on Paytm Money app, some of them are LIC Pension Fund, SBI Pension Fund, UTI Retirement, Reliance Capital Pension Fund, DSP Blackrock, ICICI Prudential Pension Fund Management, Kotak Mahindra Pension Fund, and Birla Sun Life Pension.

How can you invest in NPS through Paytm Money?

In order to invest in NPS through Paytm Money, first of all, you need to register and after you can contribute to Tier 1 and Tier 2 accounts in either of the eight pension fund managers.

Now, you can open Tier 1 and Tier 2 accounts, Only on Tier 1 accounts, a person exceeds an additional Rs. 50 lakhs under Section 80 CCD (1B) and a maximum of Rs. 1.5 lakhs under Section 80C.

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PayTM money charges on NPS

As per regulations online platform like PayTM Money and offline platform’s are allowed to charge ₹200 from initial subscribers. But there are other benefits using online platform over offline. (See Details in below image)

PayTM Money has not announce any charges for NPS, seems they will share the info at the “Time of Launch”.

Should you buy NPS from Paytm Money app?

Individual’s will get tax deduction under Section 80CCD (1B) upto ₹50,000, which is solely available for NPS contribution. It’s benefits not ends here as on maturity the 40% amount is tax free. It will be become 60% after enacting of law announced in December 2018 by cabinet.

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