eNPS allows you to make online payments. A major glitch in the system has been fixed with the addition of ICICI and Axis Bank
11-Jul-2017 •Neil Borate
The NPS (National Pension System) is one of India’s largest retirement savings vehicles and an increasingly popular alternative to older systems such as the EPF and PPF. Part of its mojo is the eNPS, an online platform that allows customers to conduct many routine NPS transactions such as contributions, fund manager changes and fund changes.
How to contribute online (Net Banking)
Subscribers who have registered on the eNPS platform can contribute online. This is done in a few simple steps:
NPS customers have an associated point-of-presence (PoP) which is typically their bank. This institution completes the KYC for them at the time of account opening.
Online NPS contributions attract a service charge of 0.05% (Rs 25 for a typical contribution of 50,000). This is paid to the associated point-of-presence (generally your bank). Once these charges are added, you are directed to the payment gateway.
Avoid Cards: Customers could previously contribute to eNPS using credit or debit cards or through online banking. However, card payments carried hefty charges ranging from 0.8-0.9% of contributions. They still do. So a contribution of Rs 50,000 will attract a charge of about Rs 450.
Use Net Banking: Card charges made paying through net banking a no-brainer. However, net banking was previously restricted to banks associated with SBI ePay which excluded two of India’s largest banks – ICICI and Axis. NPS has now added Billdesk as a payment gateway allowing customers of both banks to make NPS contributions through net banking. Net banking costs just 0.6 rupees or 60 paise per transaction.