National Pension System rule changed. Credit card payment for NPS Tier II accounts is not allowed.

The Pension Fund Regulatory and Development Authority (PFRDA) has chosen to quit tolerating installment of memberships/commitments by utilizing charge cards as a method of installment in the National Pension System (NPS) Tier-II record. The controller has trained all Points of Presence (PoPs) to promptly quit tolerating charge cards for installments to NPS Tier II records.

In a roundabout dated 03 August 2022, the PFRDA said, “The Authority has chosen to stop the office of installment of memberships/commitments utilizing charge card as a method of installment in the Tier-II record of NPS. In like manner, all PoPs are educated to stop the acknowledgment concerning charge card as a method of installment for the Tier-II record of NPS with prompt impact.”

The controller said it has taken the choice to stop the utilization of charge cards in NPS Tier-II records in the activity of the powers given under Section 14 of Pension Fund Regulatory and Development Authority Act 2013 “to safeguard the interests of endorsers and to manage, advance and guarantee methodical development of the public Pension System and annuity plans to which the Act applies.”

NPS has been the main saving instrument that permitted account holders to contribute utilizing their Mastercards through the eNPS entrance. While the Mastercard installment office is as yet accessible for the NPS Tier-I account, you can’t make a commitment to the NPS Tier-II record utilizing your Visa.

The utilization of Visas for installments to speculation plans, for example, shared assets or stocks and so on are for the most part not urged because of dread of over-utilizing on exorbitant premium cash. Visa clients need to pay 0.60% (barring GST) as an installment passage charge for adding to NPS with a Mastercard through net banking.

NPS Tier II record is a deliberate record that an endorser can open if s/he has an NPS Tier I account. The Tier-II record has adaptable withdrawal and leaves rules. Additionally, commitments to the NPS Tier II record meet all requirements for no assessment exceptions.