Home / Money / Personal Finance /  NPS rule change: PFRDA issues new norms on trail commission. Details here

NPS rule change: In a bid to support the Points of Presence (POPs), the Pension Fund Regulatory and Development Authority (PFRDA) has allowed trail commission payment through POPs for the National Pension System or NPS accountholders. However, the pension fund regulator made it clear that trail commission on NPS contributions made through D-Remit will be similar to eNPS (other mode of Online contribution) by those subscribers who were on-boarded by the respective PoPs.

Issuing a notification in regard to new NPS rule on trail commission, the PFRDA said, "In order to support the Points of Presence (POPs) for their significant efforts and resources deployed by them for sourcing NPS Accounts and make them sustain their NPS outreach efforts, it has been decided that the trail commission shall be payable to POPs w.e.f. 01.09.2022. The trail commission on contributions made through D-Remit will be similar to eNPS (other mode of Online contribution) by those subscribers who were on-boarded by the respective PoPs. The charge structure for POPs were provided by PFRDA vide its circular dt. 31.01.2022."

"The trail commission to PoPs for D-Remit Contributions of the associated Subscribers shall be @ 0.20% of the contribution amount (Minimum 15 and Maximum 10,000) similar to eNPS. The applicable charges would be recovered by unit deduction on periodical basis," PFRDA added.

PFRDA had introduced the D-Remit (Direct Remittance) facility for the subscribers wherein they could deposit their voluntary contributions with greater ease by creating a static virtual ID linked to their PRAN and remit the amount from their bank account.

D-Remit envisaged as a 'subscriber centric measure' to enable one to deposit contributions into PRANs from their savings bank account through Net banking/IMPS/UPI. The feature intends to optimize investment return by offering same day NAV, if Trustee Bank receives the contributions before 9.30 AM. It has become very popular because of its ease of use, operational convenience, the unique facility of setting up SI/auto debit, changing the auto debit amount, pause auto debit etc.

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Asit Manohar

Chief Content Producer at Live Mint Digital Team
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