NPS is a government-sponsored pension scheme. NPS allows subscribers to contribute regularly in a pension account during their working phase. On retirement, subscribers can withdraw a part of the corpus in lump sum and use the remaining corpus to buy an annuity to secure a regular income after retirement. A substantial corpus creation for one’s retirement phase is an essential aspect in financial planning.
PFRDA (Pension Fund Regulatory and Development Authority has launched Direct Remittance (D-Remit) facility for NPS Subscribers for Voluntary contribution in Tier I and Tier II Accounts
Now, NPS D-Remit subscribers can set up systematic investments through auto-debit or standing instructions at a regular periodic interval without any extra costs the periodic intervals could be-daily, monthly or quarterly. This is similar to the Systematic Investment Plan (SIP) applicable to mutual fund investors. New NPS facility makes investing in the scheme not only simpler and hassle-free and also helps the subscriber get same-day NAV for their investment.
To Activate D-Remit Facility, NPS Subscribers has to create Virtual ID linked to their permanent retirement account number (PRAN)
Steps to Activate D-Remit:
•Use the following link to generate "Virtual ID" for your NPS account. Unique virtual IDs have to be created for Tier 1 and Tier 2 accounts
https://cra-nsdl.com/CRAOnline/VirtualIdCreation.html
•Authenticate it by submitting the OTP sent on your registered mobile number
•Log-in to your net banking and add the "Virtual ID" as a beneficiary with the IFSC details of the Trustee Bank (UTIB0CCH274)
•Set periodic auto debit/standing instructions using net banking
•The funds received Up to 8:30 am on bank working day (other than Saturdays, Sundays and Holidays) by Trustee bank will be considered same day investment.
•There is no additional cost to NPS subscribers to avail of the D-Remit facility.
Note that for both Tier- 1 and Tier- 2 accounts, the minimum contribution through D-Remit should be Rs 500 mention "NPS contribution for D-Remit" in narration or remarks while transferring the funds.
Glimpse of How NPS has performed in the last 5 Years:
Why waiting to predict the market lows and highs, when you can save systematically in NPS! Start Investing!
We have also published the following blogs related to NPS:
1) Say Yes to National Pension Scheme:
https://mentotax.blogspot.com/2019/04/say-yes-to-national-pension-scheme-nps.html
2) How to Open NPS Account Online?
https://mentotax.blogspot.com/2019/05/blog-post_5.html
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