The National Pension System (NPS) members can now contribute to the scheme through the Bharat Bill Payment System (BBPS), the Pension Fund Regulatory and Development Authority (PFRDA) said in a circular. It is expected to enhance access and ease of members. NPS subscribers can also contribute via the eNPS portal, NPS mobile App, or through the service provider by physically submitting a cheque or demand draft. Now, they have one more option.

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What Is BBPS?

Developed by the National Payment Corporation of India (NPCI), BBPS is an integrated online platform that connects the utility and payment service providers. It aims to make utility and other payments easier users.

NPS Payment through BBPS:

BBPS enhances access to different billers. “To facilitate easier contribution, a new additional channel for the National Pension System (NPS) contributions are now being introduced on BBPS. Subscribers can make contributions using multiple payment applications such as BHIM, PhonePe, etc.,” PFRDA’s August 28 circular reads.

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Here are the details:

• Under the all-citizen model, when one makes an NPS contribution through Points of Presence (POPs), a trial commission is paid to POPs. It will apply to BBPS payments as well, under the all-citizen model.
• According to the circular, the POP and BBPS charges will be displayed to the subscribers on the platform. So, when a subscriber makes the NPS payment through BBPS, the charges will be deducted upfront.
• There will be a charge of Rs 0.50 per transaction in lumpsum contribution.
• For SIP contributions, the charges will remain the same, Rs 0.50 per transaction.
• To make contributions through SIP, subscribers must register for the SIP mandate and pay a one-time registration charge of Rs 4.00.
• There will also be good and service tax (GST) on the charges.
• As per the circular, BBPS will facilitate lumpsum contributions as of now. So, for now, one can only use the platform to make lumpsum NPS contributions.
• This contribution will be settled on the next day of contribution (T+1). Here, ‘T’ refers to the transaction date (date of payment). If the payment fails, the unsettled amount will be refunded to the subscriber within five working days.
• A systematic investment plan (SIP) mandate will be introduced later.