NPS Contributions- NPS Tier 2 Contributions Using Credit Card Not Allowed

The National Pension System (NPS) is a voluntary, defined contribution retirement savings plan designed to help members make the best decisions for their future by allowing them to save consistently throughout their working lives. The NPS is intended to assist people in developing the habit of saving for retirement. A subscriber may withdraw a lump sum payment equal to 40% of their investment at maturity without paying taxes on it. Anything over 40% will be taxed, with a lump sum withdrawal limit of 60%.
The National Pension System Trust is a specialised division of the Pension Fund Regulatory and Development Authority (PFRDA), which reports to the Ministry of Finance of the Indian government. In India, the National Pension System is a voluntary defined contribution pension scheme. The Pension Fund Regulatory and Development Authority (PFRDA) recently stopped accepting credit card payments for Tier-II contributions to the National Pension System (NPS).

According to the regulator, it decided to prohibit credit card use in NPS Tier-II accounts as part of its authority under Section 14 of the Pension Fund Regulatory and Development Authority Act 2013 (PFRDA Act), which states that it has the authority "to protect subscribers' interests and to regulate, promote, and ensure orderly growth of the national Pension System and pension schemes to which the Act applies."

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