PFRDA has enabled contribution by Subscribers into D-Remit by using IMPS, the instant fund transfer facility provided by NPCI.
The Pension Fund Regulatory and Development Authority (PFRDA) has come out with a new option for making contributions to the National Pension System (NPS) account under the Direct Remittance (D-Remit) feature. PFRDA has enabled contributions by subscribers into D Remit by using the Immediate Payment System (IMPS), the instant fund transfer facility provided by the National Payment Corporation of India (NPCI).
Last year, PFRDA had introduced a new mode of payment for the NPS subscribers, called Direct Remittance (D-Remit). The new mode of NPS contributions will enable the NPS subscribers to set up systematic investment through net banking by which periodical and regular contributions can be made into 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 for the transaction done.
The Subscribers could deposit their voluntary contributions under D Remit from the net banking account directly, by using only NEFT or RTGS. Now, the contributions through IMPS are also accepted from March 1, 2021, for the benefit of subscribers. The minimum value of contribution under D Remit should be equal to or above Rs 500.
Under D Remit, the contributions received by the Trustee Bank before 09:30 am on a working day, (post contribution made by the Subscribers), shall be considered for investment on the same day while contributions received by Trustee Bank after 09:30 am shall be considered for investment on the next working day, as per the existing guidelines.
The D-Remit mode of contribution is 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 also 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.
The investment made in any of the fund options of the National Pension System (NPS) can get you the same-day NAV. The Pension Fund Regulatory and Development Authority (PFRDA) had revised the cut-off timing for giving the NPS subscriber the same day’s NAV.
Effective from 12th November 2020, the timing had 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.
PFRDA had also extended the option of contribution into NPS (National Pension System) through D-Remit to NRI-NPS subscribers, who can contribute to their NPS accounts from funds in their Non-Resident Ordinary (NRO) or Non-Resident External Account (NRE) accounts