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Now, contribute to your NPS account via UPI. Here's how to do

As per the PFRDA statement, now, the contributions through UPI are enabled to further ease the process of depositing contributions. (iStock)Premium
As per the PFRDA statement, now, the contributions through UPI are enabled to further ease the process of depositing contributions. (iStock)

  • The Pension Fund Regulatory and Development Authority (PFRDA) has launched a UPI handle for depositing contributions through D-Remit for the benefit of subscribers. Currently, the contributions were carried out using other internet banking mediums such as IMPS, NEFT, and RTGS.

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You can now contribute to your National Pension System (NPS) account through Unified Payments Interface (UPI), the country's instant real-time payment system. The Pension Fund Regulatory and Development Authority (PFRDA) has launched a UPI handle for depositing contributions through D-Remit for the benefit of subscribers. Currently, the contributions were carried out using other internet banking mediums such as IMPS, NEFT, and RTGS. With the UPI handle now in motion, the process for voluntary contributions by subscribers will further ease, become quicker and more flexible.

As per the PFRDA statement, now, the contributions through UPI are enabled to further ease the process of depositing contributions.

At present, subscribers deposited their voluntary contributions under D-Remit into Tier I/II from their net banking account of their respective bank account by opting methods like IMPS, NEFT, and RTGS.

The UPI handle for the D Remit is --- 'PFRDA.15digitVirtualAccount@axisbank'.

However, PFRDA has also notified that D Remit virtual

account is different from the associated Permanent Account Number (PRAN) and it starts from either 6001 or 6002. Also, the D remit Virtual Account number is different for Tier I & II.

With the UPI feature, subscribers will be able to make the same-day investment under their NPS accounts.

PFRDA explained that under D-Remit, the contributions received by the Trustee Bank (TB) before 09:30 AM shall be considered for investment on the same day. While the deposits received after 09:30 AM will be considered for investment on the next investment day as per the guidelines.

Apart from same-day investments and NAV, other benefits of the UPI handle are - the 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 through Standing Instructions and rupee cost averaging; and long term retirement wealth creation etc.

Further, the pension regulator highlighted that since the minimum value of contribution under D-Remit is equal to or above 500. Thereby those UPI-based deposits which are below 500 will be returned by the trustee bank.

"Those contributions received for PRANs which are frozen/inactive would be returned by TB post receipt of confirmation from the respective Central Record Keeping Agency (CRA)," the statement said.

NPS is a voluntary retirement savings scheme that enables the subscribers to make defined contributions towards planned savings thereby securing the future in the form of pensions.

PFRDA is the nodal agency for the implementation and monitoring of NPS.

Here's how a subscriber can create a virtual account number and remittance through the UPI handle.

Step 1 - Visit the eNPS website on CRA System.

Step 2 - Provide details to verify PRAN.

Step 3 - Submit OTP received on Mobile Number/email ID.

Step 4 - Select Account-Tier I or II for which Virtual Account is to be created.

Step 5 - Read and give your Consent.

Step 6 - Click on ‘Generate Virtual Account’, then the request is forwarded to Trustee Bank, and an Acknowledgement Number is displayed. A separate number is generated for each Tier type.

Step 7 - In the UPI handle, enter the 15-digit Virtual Account No. in the format, ‘PFRDA.15digitVirtualAccount@axisbank’ for remitting the funds to PRAN.

Step 8 - Same day NAV if funds are received on T-day till 9:30 AM on any working day. Contributions received post 9:30 AM will be invested on the next working day.

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