Paytm Money to allow users to invest in National Pension System on its platform
Online mutual fund investments platform, Paytm Money, which is a wholly owned subsidiary of One97 Communications Limited (the company that owns and operates Paytm), on Wednesday said that it has received the approval to offer National Pension System (NPS) on its platform from the Pension Fund Regulatory and Development Authority (PFRDA).
With this service, investors registered with Paytm Money will be able to invest in NPS within minutes. The company aims to offer NPS services (both Tier 1 and Tier 2 accounts) from all the eight major Pension Fund Managers on the platform. Paytm Money plans to offer end to end digital and paperless experience for NPS investing.
With NPS, investors on Paytm Money platform will be eligible for additional deduction of taxable income up to Rs. 50,000 under Section 80 CCD (1B) over and above the ceiling of Rs. 1.5 lakh under the Section 80C.
“National Pension Scheme (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. Investors can also avail additional annual tax benefits every year with this along with investing for retirement. We expect to go live with NPS investing soon.” said Pravin Jadhav, Whole-time Director of Paytm Money.
Earlier this year, Paytm Money claimed to have over a million users. Recently, the company had also announced that it has received SEBI approval for Stock Broking services.
Last month, it had stated that it was offering mutual fund schemes from all 40 Asset Management Companies (AMCs) in India. The company's latest additions being Franklin Templeton Mutual Fund & ITI Mutual Fund under its portfolio.
With a 250-member team led by Pravin Jadhav, its whole-time Director, the company recently added investor-friendly features such as one-tap portfolio top up, advisory based portfolio as Investment Packs, Single Payment experience for SIPs (Systematic Investment Plan), and UPI-based payments, among many others, to make investing simple and seamless.
In March, this year, Paytm Money raised Rs 28.87 crore from parent One97 Communications Pvt Ltd. During the platform's launch in September last year, Paytm Money had received an investment commitment of $10 million from One97 Communications.