Over the years, NPS or National Pension Scheme has evolved as an investment product catering to diverse investment needs such as now can serve purposes of post retirement pension, offers tax benefit and also comes in handy in meeting your short term goals. But one aspect where it lagged was in getting same day NAV as against other investment avenues and now this feature is also available under NPS.
And of late to further facilitate NPS subscribers in getting same day NAV, IMPS has been rolled out beginning March 1. This facility too enables instant money transfer from subscribers' bank account to their NPS account
But this is different from the contribution received via NEFT or RTGS which are returned on the same day in case of return. As in case of return, the IMPS contributions shall be implemented on T+1 via 'credit adjustment process' as per the NPCI guidelines and based on D Remit process guidelines of the Pension Fund Regulatory & Development Authority (PFRDA).
D-Remit or Direct Remittance via IMPS
D-Remit or Direct Remittance is to be done in favour of the Trustee Bank which as of now is Axis Bank. And using the process money can be transferred from subscriber's savings account to NPS to get same day NAV, thus optimizing their return. Note for the same day NAVs as per the revised guidelines contributions into the account have to be made before 8:30 am, else the contribution shall be counted for the next day.
D Remit or Direct Remittance empowers NPS Subscribers to contribute directly from the Subscribers' Savings Bank Account. It also benefits them with the benefit of the same day investment provided the contributions are received at Trustee Bank before 9.30 AM on any bank working day other than Saturdays/Holidays. D Remit also enables the
Subscribers to automate their recurring contributions as per their convenience by way of Standing Instruction so as to reap the benefit of rupee cost averaging.
So, as yet another additional mode, now money can be remitted to the NPS account via D-Remit facility using IMPS or Immediate Payment System.