Online boost to the NPS

eNPS allows you to make online payments.

The NPS (National Pension System) is one of India’s largest retirement savings vehicles and an increasingly popular alternative to older systems such as the EPF and PPF. Part of its mojo is the eNPS, an online platform that allows customers to conduct many routine NPS transactions such as contributions, fund manager changes and fund changes.

How to contribute online (Net Banking)
Subscribers who have registered on the eNPS platform can contribute online. This is done in a few simple steps:

• Simply click on the ‘Contribution’ button on the eNPS home page. Enter your Permanent Retirement Account Number (PRAN), Date of Birth and the Captcha code.
• Enter the One-time-Password (OTP) that is sent to your registered mobile number and/or email address to authenticate your login.
• Enter your contribution amount. The system will automatically add a service charge and GST.
• Choose your payment gateway. Currently you can choose either SBI ePay or BillDesk. Choose the one that your bank is affiliated to. Login to your bank’s Net banking.
• Enter ‘NPS Contribution’ as your online transfer message and pay.

Charges
NPS customers have an associated point-of-presence (PoP) which is typically their bank. This institution completes the KYC for them at the time of account opening.

Online NPS contributions attract a service charge of 0.05% (Rs 25 for a typical contribution of 50,000). This is paid to the associated point-of-presence (generally your bank). Once these charges are added, you are directed to the payment gateway.

Payment Options
Avoid Cards: Customers could previously contribute to eNPS using credit or debit cards or through online banking. However, card payments carried hefty charges ranging from 0.8-0.9% of contributions. They still do. So a contribution of Rs 50,000 will attract a charge of about Rs 450.

Use Net Banking: Card charges made paying through net 

banking a no-brainer. However, net banking was previously restricted to banks associated with SBI ePay which excluded two of India’s largest banks – ICICI and Axis. NPS has now added Billdesk as a payment gateway allowing customers of both banks to make NPS contributions through net banking. Net banking costs just 0.6 rupees or 60 paise per transaction.

I am an ardent follower and lover of credit cards as they save money too if used and followed properly.

Most of the times when I speak with my friends / colleagues / associates , I have personally found NO ONE USES CREDIT CARD as they charge very hefty fees / charge very high Interest rates. 

A normal 1% Cashback card for that matter where the cashback is given in the form of points in the credit card reward system will give approx value back in my card.

Let us assume that I pay 50,000 using my credit card and 0.9% is the commission taken on that 50,000 and 18% GST levied on that 0.9% commission as well.

The total amount comes out to be 50,531 /- INR. 

A 1% cashback card will give me back 505.31 Rupees back in my Card Reward points.

A 1.5% cashback [ though rare] will give me 757.965 /- INR in the form of points.

if I calculate now, 50,531 - 505.31 = 50,025.69 /- INR there by paying only 25 rupees more.

I its 1.5% cashback , I am paying 49,773.035 /-INR . which is even lesser than internet banking. and hence very rare to get this kind of a deal.

If the amount is substantial, we have to look at effective Gains and not just the figure of 531 /- 

If the benefit of paying additional money is more , then why not to pay with Credit Cards??