If you wish to automate your NPS contributions like SIP, here is good news for you. Investments under the National Pension System (NPS) with the new D-Remit facility are now even easier and convenient. PFRDA, the Pension Regulator, recently launched the D-Remit or Direct Remittance facility that lets NPS subscribers contribute under NPS using internet banking services. Investments using the D-Remit facility, investors can get the same-day NAV update. Earlier contributions through NPS mobile application or eNPS portal take T+2 working days to reflect the NAV on the account. However, the old contribution methods are still available.
The main advantage of D-Remit is the same-day NAV reflection. Transferring funds using D-Remit at 8.30 am or earlier will reflect the equivalent NAV in the NPS account on the same day.
With the Direct-Remittance service, a subscriber can set up automatic contributions. If the subscriber has an internet banking facility, he/ she can place periodical auto-debit instructions through the net banking portal.
The new upgrade allows subscribers to transfer funds using the NEFT/ RTGS system. Just like transferring funds between regular bank accounts. This option will let subscribers pay quickly without visiting the NPS portal or application.
Using the D-Remit facility is not a hard thing. All you need to have an internet banking service and an NPS Tier-1 account. However, you can transfer funds in both Tier-1 and Tier-2 accounts using the D-Remit service. Here are the steps:
Once you have finished adding the payee, you can transfer funds using NEFT/ RTGS to your NPS account anytime during banking hours. The minimum contribution value using D-Remit is Rs. 500. As per the PFRDA guidelines, you should enter 'NPS Contribution for D-Remit' as a transaction remark or narration during fund transfer.
For recurring payments like SIP, you can create a standing instruction from the internet banking portal. With the standing instruction, you are authorizing your bank to transfer a certain amount of funds to another account for a period.
In order to transfer funds using the D-Remit facility, you must have to create a Virtual ID linked with your PRAN. Here the steps to create a Virtual ID from CRA:
You can set up automatic contributions to your NPS account using SBI internet banking. All you need to have your Virtual Account Number provided by NSDL-CRA for your NPS account and a Net-Banking enabled SBI account. With the help of Standing Instruction, you can start automating payments to your NPS Tier-1 or Tier-2 account for a period. Here are the steps:
Once you added the payee information, you are ready to create a standing instruction that will enable automatic payments in the future. Here are the steps:
Once you have completed these steps, your SIP registration setup is complete. Now you no need to contribute to your NPS account manually. As per your debit instruction, the future contributions will be done automatically and the equivalent NAV will be reflected on the same day.
Read: NPS Withdrawal Rules - Premature Exit Rules
Subscribers under National Pension System (NPS) can now make their contributions using the IMPS (Immediate Payment Service) service. Earlier, the facility was limited to NEFT and RTGS. According to PFRDA (The Pension Fund Regulatory and Development Authority), the new service started on March 1, 2021. The new facility will take one extra day (T+1) for the 'credit adjustment process' as per the guidelines of NPCI to reflect the fund on your NPS account. However, funds transferred using D-Remit using NEFT/ RTGS on or before 8.30 am reflect the equivalent NAV in the NPS account on the same day.
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