Paytm Money, a Paytm-owned online channel that facilitates investment in mutual funds, has received a go-ahead from pension regulatory body, the Pension Fund Regulatory and Development Authority (PFRDA) for offering National Pension System (NPS).
Now, other than SBI, HDFC Bank, ICICI Bank etc., Paytm Money will also serve as the POP or Point of Presence for the NPS investment product providing interface to customers. Offline POPs carry out their customer centric operations via their branch network referred as POP Service Providers (POP-SP).
NPS, a retirement product, comes with 2 major advantages, one is its low cost and the second is the additional tax rebate of up to Rs. 50,000 under section 80 CCD(1B) which is over and above the Rs. 1.5 lakh limit provided as part of Section 80C.
To invest in NPS via Paytm Money, an individual needs to register oneself first over the app and start with the contributions to both Tier 1 and Tier 2 accounts.