NPS Scheme: Cut-off timing for getting same-day NAV revised, direct transfer of money now possible

The regulator for National Pension Scheme (NPS) has revised the timings for contributions received at Trustee Bank for getting same day’s NAV.

Voluntary contributions from NPS subscribers received at Trustee Bank till 9:30 am on any day (other than Saturday, Sunday and Holidays) under D-Remit would be considered for giving the subscriber the same day’s NAV.

The contribution received post 9:30 am shall be considered for next working day NAV. This came into effect from November 12. Earlier, for getting the same-day NAV, the cut-off time was 8:30 am.

Under the D-Remit facility, recently launched by the pension fund regulator, NPS subscribers can now transfer money directly to their NPS accounts from their bank accounts.

In addition, NPS subscribers can contribute on regular basis (daily/monthly/quarterly basis) just like a mutual fund systematic investment plan or SIP, directly from their bank account by using the recurring option of their banking platform.

The minimum contribution amount through D-Remit feature is Rs.500.

Subscribers under NPS scheme

The number of NPS subscribers grew over 23 per cent to 3.83 crore by the end of October, according to data from the Pension Fund Regulatory and Development Authority (PFRDA).

The number of subscribers in various schemes under the National Pension System (NPS) rose to 383.12 lakh by the end of October 2020 from 310.80 lakh in October 2019, showing a 23.27 per cent jump year-on-year, PFRDA said in a release on Wednesday.

How to use D-Remit facility for NPS

To use D-Remit, NPS subscribers are required to have a Virtual ID (Virtual Account). They have to access the Central Recordkeeping Agency (CRA) portal for National Pension System.

The subscriber will be sent an OTP for authentication on the mobile number registered in PRAN.

The generation of the virtual id is a one-time activity, and these ids are permanently attached to PRAN for the purpose of D-Remit.

The virtual Ids are unique for Tier I and Tier II NPS accounts.

How to contribute to NPS account through virtual ID

NPS subscribers who have net banking facilities of banks can avail benefit of R-Remit feature.

After logging into the net banking, the subscriber needs to add the virtual id as beneficiary with the unique IFSC details of the trustee bank to transfer fund or set up auto debit from their bank accounts.

PRDRA suggests that the fund transfer made using D-Remit should have narration 'NPS Contribution for D-Remit'.