- August 4, 2022
- Posted by: Rohit Tiwari
- Category: News
PFRDA has ordered all Points of Presence (PoPs) to stop taking credit cards for payments to NPS Tier II accounts immediately.
The Pension Fund Regulatory and Development Authority (PFRDA) has decided to discontinue accepting credit card payments for subscriptions and contributions in the National Pension System (NPS) Tier-II accounts.
The regulatory body has ordered all Points of Presence (PoPs) to stop taking credit cards for payments to NPS Tier II accounts immediately.
According to a PFRDA circular issued on August 3, 2022: “The Authority has decided to stop the facility of payment of subscriptions/contributions using credit card as a mode of payment in the Tier-II account of NPS. Accordingly, all PoPs are advised to stop the acceptance of credit card as a mode of payment for the Tier-II account of NPS with immediate effect.
According to the regulator, it decided to ban credit card use in NPS Tier-II accounts as part of its authority under Section 14 of the Pension Fund Regulatory and Development Authority Act 2013 (PFRDA Act), “to protect the interests of subscribers and to regulate, promote, and ensure orderly growth of the national Pension System and pension schemes to which the Act applies.”
What is NPS tier II
Only those who already have a Tier I account are eligible to open an NPS Tier II account, which is voluntary. You must contribute at least Rs 1,000 when opening an NPS Tier II account. The only requirement for contributions to Tier II NPS accounts is that they must be made in multiples of Rs 250, with no upper limit.
According to the HDFC Bank website, “A Tier II NPS account offers greater flexibility in terms of withdrawal, and no exit load is charged when you withdraw funds from your Tier II NPS account. However, NPS Tier II investments are not tax free.”
How to make payment for NPS tier II
NPS subscribers can make payment contributions online at https://enps.nsdl.com/eNPS or through the NPS mobile app, and they can pay with a, debit card, or net banking. Subscribers may also make a contribution through any POP-SP or affiliated Nodal Office.
When will the units be credited to the NPS Tier II account?
According to the NSDL website, “For Tier II account, there will be a time lag between the time a subscriber deposits Cash/DD/cheque with the POP-SP and the time of credit of units to his / her account, which may range upto 15 working days at the time of initial registration and upto 7 working days for subsequent contribution. Once the contribution is credited to his / her account, an e-mail alert as well as a SMS alert will be sent to the registered e-mail ID and mobile number of the subscriber. This service is currently available to State Government employees and the same will be made available to the Central Government employees shortly.”