NPS Contribution: NPS allows you to invest through credit cards – Check How to do it

NPS Contribution: The government recently changed income tax laws to make NPS or National Pension Scheme more attractive. On retirement or reaching the age of 60, an NPS subscriber can withdraw 60% of the corpus and it will be exempt from income tax, as compared to the 40% limit earlier.

Contributions are credited into NPS accounts on T+2 basis or trade date plus two days.

Before you make payments, note the transaction charges (Net Banking: 0.60 per transaction + GST@18%; Debit Card: 0.80% of the transaction amount + GST@18%; Credit Card: 0.90% of the transaction amount + GST@18%). Also, note that payment through debit card is only up to 2,000, says eNPS website.

NPS Contribution: Key Points

  • Besides credit card, NPS subscribers can use debit cards and internet banking facilities to contribute online.
  • If they are making payments through credit cards, NPS subscribers have to, however, keep a note of the charges.

Contribution towards your NPS account can be made both online or offline. If you are making the contribution online, you have the option of making the payment through Credit Cards. But do note the charges. NPS also allows you to make a contribution through other modes like debit cards and internet banking.

NPS Contribution via Credit Card: How to do

  1. To make NPS contribution through credit card or other modes, log into your NPS account by entering user id and password.
  2. Then select the ‘Transact Online’ tab and then select ‘Contribute Online’.
  3. Subscribers can opt to contribute through eNPS. They will be redirected in a new tab to eNPS website for making an online contribution. (Subscribers can also go directly to the eNPS website if you wish to.)
  4. Then subscribers will be asked to verify/enter their PRAN (Permanent Retirement Account Number) and an OTP will be sent to the subscribers through email/SMS.
  5. After they enter the OTP, NPS subscribers need to select the account type (Tier I or Tier II) and enter the amount. They will be taken to payment different options: credit card, debit card, and internet banking.

Also, note that POP (or point-of-presence service provider) trail commission will be applicable on the contribution amount @ 0.10% (subject to a minimum of 10 and maximum of 10,000 per transaction). This charge will not be applicable for subscribers registered in eNPS through Aadhaar, says eNPS website.

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