National Pension System: New payment option for same day NAV on contributions made in NPS

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Updated: May 21, 2020 6:12:37 PM

Currently, one has to invest through POPs, e-NPS or through NPS mobile app but going forward one can invest directly from net banking.

 nps contribution online payment, nps cut off time, contribution, NAV, D-Remit mode, nps, pfrda,NPS NAV cut-off time: The D-Remit mode is free of cost as there is no charge in the transaction done.

NPS Online Contribution: The Pension Fund Regulatory and Development Authority (PFRDA) is introducing a new mode of payment for the National Pension System (NPS) subscribers called Direct Remittance (D-Remit). The new mode of NPS contributions will enable the NPS subscriber to set up systematic investment through net banking by which periodical and regular contributions can be made into the NPS. One can directly invest in NPS from the net banking facility of one’s bank account. And, what’s more, the NPS contribution online payment in the D-Remit mode is free of cost as there is no charge in the transaction done.

According to the circular, the D-Remit option will not only ease the process of depositing funds but also optimize the investment returns by providing the subscribers with the Net asset value (NAV) of the date of deposit of contribution if it is made before the cut-off time.

The funds received on T-Day till 9.30 am on any working day will be considered for same-day investment. The contributions received post 9.30 am on T-Day will be invested on the next working day i.e. T+1 day. Currently, NPS contributions received through e-NPS or POPs are invested as on T+2 days.

The D-Remit mode of contribution will be available to subscribers under Government, Non-Government and all Citizens Model. To make contributions through D-Remit mode, one will have to create a Virtual ID linked to Permanent Remittance Account Number (PRAN) by logging on the account. Thereafter, the subscriber will have to add Virtual ID along with IFSC details as a Beneficiary in their net banking account. Finally, the subscriber can start remitting funds into NPS account as and when required.

Further, one can set up Auto-debit in net banking to keep investing systematically in NPS on a periodic and regular basis similar to SIP in mutual funds.

Currently, one has to invest through Nodal offices, POPs, e-NPS or through NPS mobile app but going forward one can invest directly from net banking. PFRDA has asked Central Recordkeeping Agencies and Banks to develop the required technology platform and the same is expected to be operational soon.

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