Paytm Money Launches the National Pension System (NPS) on its App
- Retirement planning with an additional tax deduction of up to Rs.50,000 under section 80 CCD (1B) over and above the benefits available under Section 80C
- Now invest in Tier 1 (Tax Saver scheme) and Tier 2 (Zero Lock-in Period scheme)
Mumbai, May 12, 2020: Paytm Money today announced the launch of the much-awaited National Pension System on its app, post-approval from the Pension Fund Regulatory and Development Authority (PFRDA), making it one of the first online platforms in the country to do so. This new addition is expected to benefit investors by helping them save for their retirement while also enabling tax benefits. In 2009 the ‘All Citizen Model’ in NPS was launched which allows any individual to enroll in NPS. However, till date, only 13 lakh investors have enrolled under the ‘All Citizen Model’. Paytm Money intends to increase this number manifold by enabling investments in NPS via a simple and quick digital investing experience.
“In a country like India with its huge young working population, retirement planning needs to be simplified. We want to bring NPS investing to millions of Indians and help them build a retirement corpus. It sits perfectly with our vision of democratizing wealth management in India. NPS as an offering also incentivizes the users to save additional taxes & hence complements the wide range of existing tax-saver mutual funds on our platform, said Amit Nayyar, President, Financial Services-Paytm. Paytm Money will be offering NPS with the choice to invest in Tier 1 (Tax Saver scheme) and Tier 2 (Zero Lock-in Period scheme), and provide a comprehensive platform to investors to invest in both the Tier 1 and Tier 2 accounts seamlessly.
The addition of NPS to an already feature-rich platform is a smart move that will aid investor journey in more ways than one. NPS is a smart pension scheme that helps in building a retirement corpus in a systematic way with a regular income post-retirement. Additionally, one also gets to claim a tax benefit of up to Rs.1.5 lakh under Section 80 CCD (1) and an additional tax deduction of up to Rs.50,000 under section 80 CCD (1B) over and above the benefits available under Section 80C. The tax benefit available under Section 80 CCD (1) is within the overall ceiling of Section 80 CCE. Hence, investments in NPS allow one to enjoy tax benefits to the tune of Rs 2 lakh.
With more than 5 million users exploring its platform for investments, today Paytm Money claims to have investors from 98% of pin codes of India. The team at Paytm Money sees a similar trajectory for NPS on its app given the limited penetration of the product in the country and the ease of accessibility the app offers.
About Paytm Money:
Paytm Money is a wholly-owned subsidiary of One97 Communications that owns and operates Paytm. In addition to direct mutual funds & NPS investments, it intends to offer Digital Gold also on its platform. The company has received regulatory approval for offering Stock Broking to its users and is expected to launch them soon.
Paytm Money’s vision is to become a full-stack investment and wealth management platform and bring wealth creation opportunities to millions of Indians. Headquartered in Bengaluru, the team is 300+ member strong.