The regulatory body has ordered all Points of Presence (POPs) to immediately stop taking credit cards for payments in NPS Tier II accounts.
According to a PFRDA circular issued on August 3, 2022: “The Authority has decided to stop the facility of payment of membership/contribution using credit cards 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 mode of payment for Tier-II account of NPS with immediate effect.
According to the regulator, it decided to ban the use of credit cards in NPS Tier-II accounts under its jurisdiction under Section 14 of the Pension Fund Regulatory and Development Authority Act 2013 (PFRDA Act), “to protect the interest of customers”. and to regulate, promote and ensure the orderly development of the National Pension System and pension schemes to which this Act applies.”
What is NPS Tier II?
Only those who already have Tier I account are eligible to open NPS Tier II Account, which is voluntary. You should contribute at least Rs 1,000 while 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 website, “A Tier II NPS account offers more flexibility in terms of withdrawals, 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 pay for NPS Tier II
NPS customers can make payment contributions online at https://enps.nsdl.com/eNPS or through the NPS Mobile App, and they can pay by Debit Card or Net Banking. Subscribers can also contribute through any of the POP-SPs or the concerned Nodal Office.
When will the units be credited to the NPS Tier II account?
According to NSDL website, “For Tier II account, there will be a time lag between the time of deposit of cash/DD/cheque by the customer with the POP-SP and the time of credit of units in his account, which may be the initial registration.” Up to 15 working days for subsequent contributions and up to 7 working days for subsequent contributions.Once the contribution is credited to his/her account, an e-mail alert as well as an SMS alert to the subscriber’s registered e-mail id and mobile number This service is currently available for state government employees and will soon be made available to central government employees as well.