New NPS rules: Now, NPS subscribers can deposit contributions through UPI QR code
\Dec 21, 2023
NPS deposits via UPI! The pension regulator PFRDA has announced a new development for National Pension System (NPS) subscribers. They can now deposit their contributions directly through the D-Remit process using the Unified Payments Interface (UPI) QR code. This move is aimed at simplifying the contribution process and making it more accessible and efficient for NPS participants.
The PFRDA stated, "The National Pension System has always been a reliable savings avenue for those looking to secure their financial futures.
Under the NPS, subscribers make voluntary contributions to their NPS Tier I and II accounts. However, the process of directly depositing these contributions, known as D-Remit or Direct Remittance, has just become more user-friendly."
The use of QR code - UPI for D-Remit is considered a positive and revolutionary step towards making NPS contributions more accessible, efficient, and flexible. This initiative empowers NPS subscribers to take control of their retirement savings and benefit from the advantages of systematic investment planning, PTI quoted PFRDA as saying.
Under this new mechanism, subscribers will transfer their contributions using the UPI QR Code. It is important to note that the D-Remit virtual account is different from the Permanent Retirement Account Number (PRAN). The virtual account numbers and QR codes vary for Tier I and Tier II NPS accounts.
The benefits of D-Remit include the ability to make same-day investments and set up periodic auto debit or one-time or regular contributions. The D-Remit process utilizes standing instructions and rupee cost averaging for long-term retirement wealth creation.
National Pension System (NPS): Should you invest in NPS Scheme for Retirement? | FAQs Answered
For NPS account holders with a PRAN, the D-Remit process opens up the possibility of starting a systematic investment plan. This can be done online, allowing subscribers to set up standing instructions for SIP payments to their NPS accounts, the PFRDA explained.
To utilize D-Remit, subscribers must possess a virtual D-Remit ID with the trustee bank. It is important to note that this virtual account can only be used for remitting NPS contributions.
[The Times of India]
