The Pension Fund Regulatory and Development Authority (PFRDA) has come out with a new selection for creating contributions to the National Pension System (NPS) account below the Direct Remittance (D-Remit) function. PFRDA has enabled contributions by subscribers into D Remit by applying the Immediate Payment System (IMPS), the immediate fund transfer facility supplied by the National Payment Corporation of India (NPCI).
Last year, PFRDA had introduced a new mode of payment for the NPS subscribers, referred to as Direct Remittance (D-Remit). The new mode of NPS contributions will allow the NPS subscribers to set up systematic investment by means of net banking by which periodical and normal contributions can be produced into NPS. One can straight invest in NPS from the net banking facility of one’s bank account. And, what’s more, the NPS contribution on line payment in the D-Remit mode is cost-free of price as there is no charge for the transaction carried out.
The Subscribers could deposit their voluntary contributions below D Remit from the net banking account straight, by applying only NEFT or RTGS. Now, the contributions by means of IMPS are also accepted from March 1, 2021, for the advantage of subscribers. The minimum worth of contribution below D Remit really should be equal to or above Rs 500.
Under D Remit, the contributions received by the Trustee Bank just before 09:30 am on a working day, (post contribution produced by the Subscribers), shall be deemed for investment on the similar day when contributions received by Trustee Bank following 09:30 am shall be deemed for investment on the next working day, as per the current recommendations.
The D-Remit mode of contribution is out there to subscribers below Government, Non-Government and all Citizens Model. To make contributions by means of D-Remit mode, one will have to develop 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 particulars as a Beneficiary in their net banking account. Finally, the subscriber can start off remitting funds into NPS account as and when needed. Further, one can also set up Auto-debit in net banking to retain investing systematically in NPS on a periodic and normal basis related to SIP in mutual funds.
The investment produced in any of the fund choices of the National Pension System (NPS) can get you the similar-day NAV. The Pension Fund Regulatory and Development Authority (PFRDA) had revised the reduce-off timing for providing the NPS subscriber the similar 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 deemed for providing the similar day’s NAV. The contributions received post 9.30 am. shall be deemed for the next working day NAV.
PFRDA had also extended the selection of contribution into NPS (National Pension System) by means of 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