Paytm Money has been given the go-ahead from the Pension Fund Regulatory and Development Authority to distribute NPS. Registered users will soon be able to invest in NPS within a matter of minutes.
Paytm Money - an online mutual fund investments platform - has received approval from the Pension Fund Regulatory and Development Authority to distribute National Pension System. With this service, investors registered on Paytm Money will be able to invest in NPS within a matter of minutes. According to the company's statement, major Pension Fund Managers like LIC Pension Fund, SBI Pension Fund, UTI Retirement and Reliance Capital Pension Fund, among others, will be available on Paytm Money, Times Network reported.
Users can invest in both Tier 1 and Tier 2 accounts from all the eight major Pension Fund Managers through Paytm Money. This platform will also provide end to end digital and paperless experience with National Pension Scheme investments, various news reports have suggested. With NPS, investors on Paytm Money platform will be eligible for deduction of taxable income up to Rs. 50,000 under Section 80 CCD (1B) of the Income Tax Act, 1961. This tax benefit is over and above the ceiling of Rs. 1,50,000 under Section 80C of the Income Tax Act, 1961.
Pravin Jadhav, whole-time director of Paytm Money, has said “NPS is a perfect solution for retirement planning and we are excited about bringing convenience of digital and paperless NPS investing to users of Paytm Money. We expect to go live with NPS investing soon," financial daily Mint reported. Paytm Money is presently among the biggest online platforms for mutual fund investments in India. It reportedly has an active user base of over a million, according to The Financial Express.