ETMoney has introduced an option to invest in National Pension Scheme (NPS) to help customers save on taxes and increase flow to the PFRDA controlled pension corpus.Through the feature, the fintech platform expects to double the NPS users across the country, a company spokesperson said.
“India has one of the youngest working populations in the world. In a decade or two from now, we will possibly have a rising number of retirees from private sector companies,” said Santosh Navlani, COO, ET Money. “So far less than 10 lakh citizens have invested in NPS since inception. We aim to add another 10 lakh NPS investors in the next 2-3 years & help Indians retire rich.”
As per data shared by ETMoney, the platform has 7.5 lakh registered users. Times Internet which owns ETMoney is a part of Bennett Coleman and Company Limited (BCCL) which also publishes The Economic Times.
Typically, low commissions made by distributors on these pension fund offerings with higher costs of integration has till now acted as an impediment for players to offer this feature to customers. However, ETMoney believes that they can buck the trend and scale the product in a profitable manner.
“The low cost, which is what works for NPS has stopped the distributors from taking it to young savers as commissions are equally lower. With ETMoney’s digital-only approach to financial services, we are leveraging our low-cost technology & still make it economically viable for us to take this product to retail investors at scale,” Navlani said.
The NPS is among deduction schemes that allow breaks on income tax under the 80C of IT Act with a maximum savings limit of Rs.1.5 lakh. Taxpayers generally invest in the scheme to increase savings under the optional tax regime.
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