National Pension System Contribution rule: The Pension Fund Regulatory And Development Authority (PFRDA) has announced the launch of a UPI handle for depositing contributions through D-Remit for the benefit of subscribers on 75 years of Independence.
Currently, subscribers deposit their voluntary contributions under D-Remit into Tier I/II National Pension System (NPS) accounts from the net banking account by using IMPS/NEFT/RTGS.
The PFRDA has now enabled contributions through UPI to further ease the process of depositing for subscribers.
In a circular dated 11 August 2022, the pension regulator said that the UPI handle for the D Remit is: PFRDA.15digitVirtualAccount@axisbank.
“It is important to note that D Remit virtual Account is different from the associated Permanent Account Number (PRAN) and it starts from either 6001 or 6002. D remit Virtual Account no is also different for Tier I & II,” PFRDA said.
The regulator further said that under D-Remit, contributions received by the Trustee Bank (TB) before 09:30 AM will be considered for investment on the same day. The contributions received after 09:30 AM will be considered for investment on the next investment day as per the guidelines.
The minimum value of contribution under D-Remit is equal to or above Rs.500. UPI-based contributions below Rs 500 will be returned by Trustee Bank.
The contributions received for PRANs which are frozen/inactive would be returned by Trustee Bank post receipt of confirmation from the respective Central Record Keeping Agency (CRA).
The contributions transferred by entering any wrong virtual account number by the subscribers will be returned as per banking norms issued by RBI, PFRDA said.
D Remit benefits
D remit provides several benefits to investors. “Same Day Investment/NAV, Facility of setting up periodical auto debit viz monthly, quarterly, half-yearly etc, Option for one time or regular contribution, Ease of modifying the amount/periodicity auto debit, enable/pause Auto debit as per convenience, Optimizing the investment benefit though Standing Instructions and rupee cost averaging, long term retirement wealth creation etc,” PFRDA said.