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Bank of India Launches Platform for Mobile-Based NPS Enrolment

The platform will allow customers to create their NPS account via mobile, in an easy and hassle-free manner

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Outlook Money
March 5, 2023
Bank of India Launches Platform for Mobile-Based NPS Enrolment

Public sector lender, Bank of India (BOI) has launched a digital platform for enrolment to the government’s National Pension System (NPS). 

Launched in association with K-fintech, the platform will provide customers the facility to create their NPS account through the mobile as well, in an easy and hassle-free manner. 

To access the platform, customers will just need to scan the QR code provided by the bank. Once the account opening page opens, customers will then need to fill in their Aaadhar details and access their photo and other details from the DigiLocker. Further registration steps can be accessed and executed thereafter. 

Bank of India said that the digital mode of NPS enrolment is easy, fast and entirely paperless. With just a few clicks, customers will be able to open their NPS account. New applicants can also make additional contributions through the available QR code, the bank said. 

Supratim Bandhyopadhyay, chairman, Pension Fund Regulatory and Development Authority (PFRDA) said: “We are happy to announce that Bank of India has launched its digital mode in association with K-fintech for new NPS registration. I believe that this digital initiative by the bank will complement our efforts in a dynamic way in realising our vision of a pensioned society.”

AK Das, managing director and CEO, Bank of India said that the NPS scheme is focused on providing several benefits to improve and secure customers’ future. The technological integration with K-fintech will make NPS subscription more convenient for them. This will allow for a significant growth in NPS accounts, he said.

The NPS scheme was launched by the central government in 2003 with the objective of providing post-retirement benefits in the form of a pension income, primarily to the unorganised sector and working professionals. Investments of up to Rs 1.5 lakh can be used to avail tax deductions under Section 80C of the Income Tax Act, 1961. An additional deduction of Rs 50,000 is available for NPS contribution over and above Section 80C limit of Rs 1.5 lakh. 

Any Indian citizen between the age of 18 and 70 years can open an NPS account. The returns are around 12– 14 per cent annually. There is no limit on the maximum contribution allowed. The employer contributions are tax-free, subject to 10 per cent of the basic salary and dearness allowance (14 per cent in case of central/state government employees). NPS also allows for partial withdrawal after 10 years, but under special circumstances. 

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