SIP in NPS to be launched before Dussehra

You can soon invest in National Pension System (NPS) through SIP. Mint had reported earlier in July that NPS may launch SIP facility in two months. Well on time, PFRDA is in the final stages of conducting tests. The regulator may announce the SIP facility in NPS before Dussehra. "We are launching SIP in NPS very soon. We are in the final stages of looking and testing the system. NPS subscribers will not have to wait even till Dussehra to enjoy the systematic investment facility," said Amit Sinha, Executive Vice President, NSDL e-Governance.

SIP in NPS will work just like SIP in mutual funds does. SIP is a technique where an investor can order her bank to debit a specific sum at regular intervals towards an investment.

Systematic investment plan facility is a great way to invest for retail investors. Just like people pay their other utility bills like phone, electricity and so on through auto debit instructions, they will be able to invest in NPS once the SIP facility is launched.

The government is making continuous efforts to improve NPS and make it more attractive for investors.

PFRDA has recently allowed NPS subscribers to change the nomination online without any paperwork. Currently, the existing subscribers of NPS who want to change their nomination have to submit S2 form request for change of their master details physically to the associated nodal offices or points of presence for updation.

NPS is gradually adding more services to its digital platform. The government pension scheme aims to make the entire process digital in next few months.

"We have been working on to make the processes digital but covid has accelerated the pace. We expect entire lifecycle of the NPS to be digital by the end of this calendar year," says Amit Sinha.