PhonePe launched Tatkal NPS on Tuesday, October 27, letting users open a National Pension System (NPS) account inside its app with a first contribution of ₹250. The service runs with select partner banks for now, and PhonePe said it will add more banks over time.
Tatkal NPS is a framework from the Pension Fund Regulatory and Development Authority (PFRDA), launched at its NPS Diwas event on October 1. It lets a UPI app reuse the KYC already held by the user’s bank, confirmed with a bank OTP, so no new documents are needed. The user searches for NPS in the app, picks a linked bank account, enters the OTP and pays the first contribution by UPI, after which a Permanent Retirement Account Number (PRAN) is issued. PFRDA lists BHIM and PhonePe as the only partner apps so far.
PhonePe is aiming the product at gig workers, freelancers and small business owners without an employer pension, and at younger first-time savers. It had about 73 crore registered users in September 2026 and already sells mutual funds, broking, insurance and loans.
- Who can join: resident Indians aged 18 to 85 (NRIs, OCI card holders and minors are excluded)
- First contribution: at least ₹250; later top-ups from ₹10, with no upper limit
- One-time onboarding charge: ₹100
- Default investment: a set pattern, which subscribers can change after joining
Why it matters: NPS has relied on bank branches and employer schemes to sign people up, which leaves out many informal workers. Putting account opening inside a UPI app with tens of crores of users removes the paperwork step that stops many first-time savers. For PhonePe, a pension account is one more regulated product that keeps users in the app, next to the mutual funds and broking it sells through PhonePe Invest.
Source: The Hindu BusinessLine; PFRDA, Tatkal NPS; The Times of India
Image: Saad Faruque from Bangalore, India, CC BY 2.0, via Wikimedia Commons
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