NPS customers will be able to use UPI QR code to transfer their contributions. With this, their money will be deposited in the account on the same day and investment can be made on the same day.
In the de-remit process, Pension Fund Regulatory and Development Authority (PFRDA) has now given the facility to NPS customers to deposit their contribution through UPI QR code. Its purpose is to simplify the contribution process. NPS contributors will be able to deposit money in a more convenient and efficient manner.
NPS has long been a reliable savings instrument for those who want to secure their financial future. Under this, customers make voluntary contributions to their NPS Tier I and II accounts. However, the process of depositing them directly, known as D-Remit or Direct Remittance, has now become more user-friendly.
QR code for de-remit – introduction of UPI
NPS is a positive and revolutionary step towards making contributions more simple, efficient and flexible. This initiative of PFRDA empowers NPS customers to take control of their retirement savings and benefit from systematic investment plans.
De-Remit Virtual Account with UPI QR Code
Under this new system, customers will use UPI QR code to transfer their contributions. It needs to be noted here that De-Remit Virtual Account is different from Permanent Retirement Account Number (PRAN). Additionally, the virtual account numbers are different for Tier I and Tier II NPS accounts and the QR codes are also different.
Main benefits of de-remit QR codes
Same Day Investment: Contributions received before 9:30 am by Trustee Bank (TB) will be invested on the same day to yield returns.
Periodic Auto Debit: Subscribers can set periodic auto-debit payments such as monthly, quarterly or half-yearly, providing a convenient way to build their retirement fund.
Lump sum or regular contribution: Flexibility to choose between lump sum or regular contribution based on personal preferences and financial goals.
Customized Investment: The D-Remit process leverages permanent guidance and rupee cost averaging for long-term wealth creation.
Set up SIP in NPS through D-Remit
For NPS account holders with PRAN, the de-remit process opens up the possibility of starting a Systematic Investment Plan (SIP). This can be done online (de-remitted), allowing customers to set up standing instructions for SIP payments in their NPS accounts.
SIP in NPS provides customers with the convenience of making regular contributions, helping them create a disciplined and convenient approach to retirement savings without the need to time the market. Similar to mutual funds, SIP NPS enables participants to benefit from rupee cost averaging. Adjusting existing investments becomes a straightforward process, with the potential for high returns.
How to use D-Remit QR code
To use D-Remit, customers must have a Virtual D-Remit ID with the Trustee Bank. This virtual account can be used only for sending NPS contributions. Establishing SIP through Net Banking involves adding a virtual account as beneficiary to the customer’s Net Banking account and providing a standing instruction for the SIP amount. With a cut-off time of fund receipt at 9:30 am, customers receive the Net Asset Value (NAV) in their NPS accounts on the same day.
