How NPS subscribers can use the new auto-debit feature to make deposits1 min read . Updated: 07 Oct 2020, 02:07 PM IST
- NPS subscribers who have net banking facilities of banks can avail benefit of the new R-Remit feature
- NPS subscribers can also get same-day NAV for their investment
Pension fund regulator PFRDA has operationalized the D-Remit facility for NPS subscribers who can now transfer money directly to the Trustee Bank from their bank account. This new NPS or National Pension Scheme facility makes investing in NPS not only simpler and hassle-free but also helps the subscriber get same-day NAV for their investment. 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.
How to create NPS Virtual ID
1) To use D-Remit, NPS subscribers are required to have a Virtual ID (Virtual Account). They have to access the CRA System and generate a Virtual ID linked to their PRAN or Permanent Retirement Account Number.
NPS customer can go to these two links to create virtual ids:
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 minimum value of D Remit is Rs. 500 per transaction in both Tier I and Tier II accounts. The virtual Ids are unique for Tier I and Tier II NPS accounts.
5) There is no additional cost to NPS subscribers to avail the D-Remit facility by creating a virtual id.
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.