National Pension System: Cut-off timing for same-day NAV on NPS contribution revised

By: |
November 21, 2020 10:32 AM

Under the D-Remit facility, which is a new mode of NPS contributions, the NPS subscriber can set up systematic investment through net banking.

same day NAV, cut-off timings, NPS contribution, eNPS account, net bankingThe online opening of the NPS is called eNPS account opening.

The investment made in any of the fund options of the National Pension System (NPS) will now get the same-day NAV. The Pension Fund Regulatory and Development Authority (PFRDA) has revised the cut-off timing for giving the NPS subscriber the same day’s NAV. Effective from 12th November 2020, the timing has been revised and now the voluntary contributions received at Trustee Bank till 9.30 am. on any bank working day (other than Saturday, Sunday and Holidays) would be considered for giving the same day’s NAV. The contributions received post 9.30 am. shall be considered for the next working day NAV.

Earlier, the same day NAV was given on NPS contributions made till 8.30 am on any bank working day. Back in October 2020, PFRDA had introduced the D-Remit facility for the subscribers of all the sectors of NPS wherein they could deposit their voluntary contributions with greater ease by creating a static virtual ID linked to their Permanent Retirement Account Number (PRAN), and get same day’s NAV, provided contributions are received at Trustee Bank within the cut-off time of 8.30 am.

Under the D-Remit facility, which is a new mode of NPS contributions, the NPS subscriber can set up systematic investment through net banking. Thereafter, one can make periodical and regular contributions into the NPS. It means, one can directly invest in NPS from the net banking facility of one’s bank account.

In its endeavour to provide digital solutions, PFRDA has already enabled the opening of online NPS Account in a paperless manner through e-signature. In order to further facilitate ease of NPS Account opening, the subscribers are now permitted to open their NPS account through One Time Password (OTP) also. The online opening of the NPS is called eNPS account opening.

In this process, the customers of banks (registered as POPs- Points of Presence), who wish to open NPS Account through internet banking of the respective banks, can open NPS Accounts using OTP received on their registered mobile number. The investment made in NPS not only helps one save tax but also helps in saving towards one’s retirement.

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