NPS Subscribers Can Now Add Funds To Their Accounts Through UPI-Based D-Remit Facility; Check How

National Pension System (NPS) subscribers can now make effortless contributions to their NPS account directly under the D-Remit process via the Unified Payments Interface (UPI) QR code. This is after the Pension Fund Regulatory and Development Authority (PFRDA) allowed subscribers of the scheme to add funds to their accounts directly under the D-Remit process via the UPI QR code.

NPS subscribers can scan the QR code and make contributions using any UPI-enabled application. The QR code is unique to each subscriber which can be saved offline for making payments and the QR codes are different for Tier I and Tier II. These personalized QR codes, which are different for Tier I and II accounts, can be stored by subscribers offline for convenient future payments.

NPS has long been a reliable savings destination for investors looking for financial security. Under the scheme, subscribers make voluntary contributions to their NPS Tier I and II accounts.

In line with the PFRDA's dedication to improving NPS subscribers' journey, another digital contribution method has been activated to enhance their experience.

As of now, the subscribers have the option of contributing directly from their Bank Account using D-Remit. The D-remit ID consists of 15 digits, which need to be added as a beneficiary in Internet banking while transferring voluntary contributions from the subscribers' Savings Bank Account.

According to the PFRDA circular dated December 6, 2023, says, "The option of D-remit is widely used by subscribers and till now nearly 10 Lac D-remit IDs have been created across sectors and subscribers from various sectors have collectively deposited approximately Rs 2700 crores of contributions since the launch of this feature. It may be noted that contributions received by Trustee Bank till 9.30 AM in its working day and on settlement days are invested on the same day and eligible for same day NAV."

Commenting on this initiative by PFRDA, Kurian Jose, CEO, Tata Pension Management, said that the last few years have seen a spurt in businesses using QR codes. All it takes to use a QR code is a camera on a smartphone (which is now a must-have in today's world). Users do not need to remember complex account numbers or provide multiple pieces of information. The convenience of making payments using QR codes has contributed to their widespread adoption in various industries and regions. One big example of businesses using this are restaurants using QR code menus, which have become quite popular.

Jose said, "The introduction of QR code - UPI for D-Remit (Direct Remittance) would help in making NPS contributions more accessible, efficient, and flexible. This initiative by PFRDA will empower NPS subscribers to take control of their retirement savings and benefit from the advantages of systematic investment planning. Under this new mechanism, subscribers can utilise the UPI QR Code to transfer their contributions. For enabling the same the subscriber must set up his virtual D-Remit account with the Trustee bank of the NPS architecture."

"PFRDA's decision to introduce QR codes to make contributions to NPS using UPI-enabled apps is in keeping with the times and a step in the right direction. Making payments using QR codes offers several conveniences like simplicity, speed, and versatility of the process which will boost the overall experience of subscribers in NPS."

"Introduction of QR codes may draw in the younger subscribers who are extremely pro-technology and are always looking for technology-based conveniences like mobile payment apps, ride-sharing services, food delivery apps, social media platforms, streaming services, and smart home devices, among others," he added.

How to use the D-Remit QR Code?

To utilize D-Remit, subscribers must possess a virtual D-Remit ID with the trustee bank. This virtual account can only be used for remitting NPS contributions. Setting up a SIP through net banking involves adding the virtual account as a beneficiary to the subscriber's net banking account and providing a standing instruction for the SIP amount.

With a fund receipt cut-off time of 9:30 AM, subscribers receive the same-day Net Asset Value (NAV) in their NPS accounts. Contributions received after this time or on non-working days will reflect the NAV of the next working day.