RETIREMENT KITTY: Now make your NPS contributions via UPI

The Pension Fund Regulatory and Development Authority (PFRDA) has launched the Unified Payments Interface (UPI) handle for depositing contributions through D-Remit (Direct Remittance) for subscribers. In 2020, the pension fund regulator had launched D-Remit, a mechanism where subscribers can deposit their contributions through net banking (IMPS/NEFT/RTGS) by creating a Static Virtual ID linked to their permanent retirement account number (PRAN). If the contributions are made before 9.30 am, subscribers will receive the same day NAV.

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The D-Remit virtual account is different from the associated PRAN and it starts from 6001 or 6002. The D-Remit virtual account number is also different for Tier I and II. As the minimum amount of contribution under D-Remit is `500, those UPI-based contributions below the minimum amount will be returned by the trustee bank. Also, contributions received for PRANs which are inactive would be returned after confirmation from the central record keeping agency.

D-Remit will give the option to a subscriber to set up systematic investment through auto debit instructions in net banking by which periodical and regular contributions can be made in the NPS account. Like mutual funds, SIPs will enable a subscriber of NPS to reap the benefit of rupee cost averaging.

Creating a virtual account number

The creation of a virtual identification number is a one-time activity and can be obtained by visiting the e-NPS link in the websites of the respective Central Record Keeping Agency (CRA). The ID will be attached to the PRAN for D-Remit. After entering the eNPS website on the CRA system, the subscriber will have to provide details to verify the PRAN. Then he will have to submit the OTP received on the registered mobile number or email and then select account Tier I or II for which virtual account is to be created.

After giving the consent, the subscriber will have to click on ‘Generate Virtual Account’. The request is forwarded to the trustee bank and an acknowledgment number is displayed. Separate numbers will be generated for each type. On generating the 15-digit virtual account number, he will have to enter it in the UPI handle, [email protected] for remitting the funds to PRAN.

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Alternatively, subscribers can make a voluntary contribution through net banking for D-Remit. They can access the CRA system and generate a Virtual ID linked to their PRAN. Post-authorisation of the virtual ID, subscribers can log-in to their net banking and add virtual ID generated as a beneficiary, with IFSC code UTIB0CCH274 to transfer the money for their voluntary contributions.