Pension fund regulator PFRDA recently has launched D-Remit facility for NPS subscribers who can now transfer money directly to their NPS accounts from their bank accounts. This new NPS facility makes investing in NPS not only simpler and hassle-free but also helps the subscriber get same-day NAV for their investment. In addition, NPS subscribers can contribute on regular basis (daily/monthly/quarterly basis) just like a mutual fund systematic investment plan or SIP, directly from their bank account by using the recurring option of their banking platform.
How to use the D-Remit facility for NPS
Through this D-Remit facility, NPS investors can transfer funds directly – through NEFT/RTGS – from their bank accounts to their NPS accounts and get same day NAV. The minimum contribution amount through D-Remit feature is Rs. 500.
1) To use D-Remit, NPS subscribers are required to have a Virtual ID (Virtual Account). They have to access the Central Recordkeeping Agency (CRA) portal for National Pension System. There is no additional cost to NPS subscribers to avail the D-Remit facility by creating a virtual id.
2) The subscriber will be sent an OTP for authentication on the mobile number registered in PRAN.
3) The generation of the virtual id is a one-time activity and these ids are permanently attached to PRAN for the purpose of D-Remit.
4) The virtual Ids are unique for Tier I and Tier II NPS accounts.
How to contribute to your NPS account through virtual ID:
1) NPS subscribers who have net banking facilities of banks can avail benefit of R-Remit feature.
2) After logging into the net banking, the subscriber needs to add the virtual id as beneficiary with the unique IFSC details of the trustee bank to transfer fund or set up auto debit from their bank accounts.
3) PRDRA suggests that the fund transfer made using D-Remit should have narration “NPS Contribution for D-Remit”.
4) The funds received on T day up to 8:30 am on any bank working day(other than Saturdays, Sundays and Holidays) by Trustee bank will be considered same day investment.
5) D-Remit enables a subscriber to set up Systematic Investment through auto debit/standing instructions in net banking by which periodical and regular contributions can be made viz daily, monthly quarterly etc, PFRDA said in a circular.
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