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Start A SIP In National Pension Scheme And Optimise Your Returns: Here's How


The pension fund regulatory body Pension Fund Regulatory and Development Authority (PFRDA) on October 1, 2020 launched the D-Remit or Direct Remittance facility using which investors in NPS can start systematic investment in this retirement avenue similar to mutual fund SIP. Tapping the facility, either by auto-debit or standing instructions subscribers can kick-start regular and periodic investments in NPS at no extra costs.


How To Make Systematic Investment In NPS For Better Returns?

The PFRDA circular suggests the periodic interval for investment in NPS could be daily, monthly, quarterly etc.

By and large the new D-Remit facility will enable all existing NPS subscribers under government, non-government, all citizens model to deposit their voluntary contributions by setting up a Virtual ID linked to their PRAN or Permanent Retirement Account Number. For the remittance via D-Remit, a minimum limit of Rs. 500 is set for both Tier I and Tier II accounts per transaction. Also, the virtual IDs are unique for Tier I and Tier II NPS.

D-Remit to also offer same day NAV; Optimise Investment returns

Other than simplifying the process of making voluntary contribution, through the new D-Remit facility, subscribers in NPS will be able to get same day NAV or Net asset value on the investments, if the contribution is received at the trustee bank by 8:30 am on any bank working day except Saturday, Sunday and public holiday.

How To Use D-Remit For Systematic Contribution To NPS?

• First of all investors in NPS need to create a Virtual ID by using any of the below 2 links and follow the on-screen procedure.

Note the creation of the virtual ID for NPS is a one-time process and these Ids will be permanently linked to PRAN.

• Now authentication needs to be done by giving out the one time password (OTP) sent to your mobile number registered in PRAN and filling an online declaration
• Log-in to your net banking and add the "Virtual ID" generated as above as a beneficiary with IFSC of the Trustee Bank (UTIB0CCH274)
• Here you can give periodic standing instruction or choose auto debit facility using net banking.


Further note that on making the contribution via the facility, use the narration as "NPS contribution for D-Remit".

Importantly, from November 12, 2020, cut-off time for same day NAV under D-Remit is 9:30 am, implying that if the contributions are received by the trustee bank till 9:30 am, same day NAV shall be offered to NPS subscriber.

Read more about: nps sip
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