Here is how you can set up an NPS SIP using the new D-Remit deposit facility and get the same-day NAV on national pension scheme contributions. To ease the process of contribution to the National Pension System(NPS), the Pension Fund Regulator(PFRDA) has introduced a new mode of deposit facility called Direct Remittance(D-Remit) starting from October 1, 2020. Circular no. PFRDA/ 2020/ 44/ SUP-CRA/17.
About the author: Karthik Swaminathan is a Software Developer by profession. He is interested in Personal Finance, Mutual Funds, Insurance, and likes to read about emerging startups.
The D-Remit facility will enable subscribers to set up systematic investment (SIP) through net banking to make periodic contributions to their NPS accounts. D-Remit facility eases the process of making a regular contribution into NPS and helps subscribers optimize the investment returns by providing the benefit of same-day NAV if contributions are received at Trustee Bank before 9:30 am on any bank working day except Saturday, Sunday and Public Holidays.
The contributions received post 9:30 am will be invested into NPS on the next working day, i.e. T+1 day. In the existing model of deposits such as e-NPS or Points of Presence(POP) contributions are invested into NPS after two working days, i.e. T+2 days whereas D-Remit enables subscribers to gain the benefit of same-day NAV by depositing contributions into NPS investments on the same working day, i.e. T day if deposits are made before the cut-off time.
The existing NPS subscribers under Government/Non-Government/All Citizens model can avail the D-Remit facility at no extra cost by logging into their respective CRA system and creating a Virtual ID linked to their Permanent Retirement Account Number (PRAN). Initially, when the D-Remit facility was introduced the cut-off time to avail same-day NAV was 8:30 AM, however starting from November 12, 2020, the cut-off time has been revised to 9:30 AM.
Get free money management solutions delivered to your mailbox! Subscribe to get posts via email!
🔥Enjoy massive discounts on our robo-advisory tool & courses! 🔥
How to create Virtual ID to avail D-Remit Facility
The Virtual ID creation is a one-time process and once generated the same Virtual ID can be used to deposit contributions into NPS in the future as well. NPS subscribers can create Virtual IDs by accessing their respective Central Record Keeping Agency(CRA) websites.
- NPS subscribers who use NSDL CRA can create Virtual ID by accessing the following link: https://cra-nsdl.com/CRAOnline/VirtualIdCreation.html
- NPS subscribers who use Karvy CRA can create Virtual ID by accessing the following link: https://enps.kfintech.com/dremit/prelogindremit/
During the process of Virtual ID creation, subscribers will be sent an OTP to their registered mobile number as part of the authentication process, and it is mandatory to have a mobile number registered in PRAN in the CRA system. The Virtual ID creation is a one-time activity and will be linked permanently to PRAN for the D-Remit facility. The subscriber needs to provide an online declaration for compliance under the Prevention of Money Laundering Act, 2002 (PMLA) during the Virtual ID creation process. The subscriber will receive an SMS/E-Mail once the Virtual ID is created successfully and authorized.
How to use Virtual ID to transfer funds into NPS account:
After the creation of Virtual ID, subscribers can log in to their net banking account and add the generated Virtual ID as the beneficiary with the IFSC code of their Trustee bank. Once the beneficiary account has been added successfully, subscribers can log in to their net banking and make NEFT/RTGS transfers to their NPS account at any time.
At present, the IMPS mode of transfer is not accepted by Trustee banks for this transaction. The subscribers can make systematic investments(similar to mutual fund SIPs) into NPS by setting up auto-debit standing instructions in net banking. PFRDA suggests that the fund transfer made using the D-Remit transfer facility should have narration “NPS Contribution for D-Remit”.
The minimum amount that can be contributed through D-Remit is Rs.500/- for both Tier-1, Tier-II accounts and there is no additional cost for subscribers to avail the D-Remit facility. As mentioned above funds received on T day until 9:30 AM on any bank working day will be invested into their NPS account on the same day and contributions made after 9:30 AM on T day shall be invested on next bank working day, i.e. T+1 day.
The D-Remit option provides a seamless facility for subscribers to make contributions into their NPS accounts and also helps them to optimize the return on investment by providing them with the benefit of same-day NAV investment.
🔥Enjoy massive discounts on our courses and robo-advisory tool! 🔥
Use our Robo-advisory Excel Tool for a start-to-finish financial plan! ⇐ More than 1000 investors and advisors use this!
New Tool! => Track your mutual funds and stocks investments with this Google Sheet!
- Follow us on Google News.
- Do you have a comment about the above article? Reach out to us on Twitter: @freefincal or @pattufreefincal
- Join our YouTube Community and explore more than 1000 videos!
- Have a question? Subscribe to our newsletter with this form.
- Hit 'reply' to any email from us! We do not offer personalized investment advice. We can write a detailed article without mentioning your name if you have a generic question.
Get free money management solutions delivered to your mailbox! Subscribe to get posts via email!
Explore the site! Search among our 2000+ articles for information and insight!
About The Author
Dr M. Pattabiraman(PhD) is the founder, managing editor and primary author of freefincal. He is an associate professor at the Indian Institute of Technology, Madras. He has over nine years of experience publishing news analysis, research and financial product development. Connect with him via Twitter or Linkedin, or YouTube. Pattabiraman has co-authored three print books: (1) You can be rich too with goal-based investing (CNBC TV18) for DIY investors. (2) Gamechanger for young earners. (3) Chinchu Gets a Superpower! for kids. He has also written seven other free e-books on various money management topics. He is a patron and co-founder of “Fee-only India,” an organisation promoting unbiased, commission-free investment advice.Our flagship course! Learn to manage your portfolio like a pro to achieve your goals regardless of market conditions! ⇐ More than 3000 investors and advisors are part of our exclusive community! Get clarity on how to plan for your goals and achieve the necessary corpus no matter what the market condition is!! Watch the first lecture for free! One-time payment! No recurring fees! Life-long access to videos! Reduce fear, uncertainty and doubt while investing! Learn how to plan for your goals before and after retirement with confidence.
Our new course! Increase your income by getting people to pay for your skills! ⇐ More than 700 salaried employees, entrepreneurs and financial advisors are part of our exclusive community! Learn how to get people to pay for your skills! Whether you are a professional or small business owner who wants more clients via online visibility or a salaried person wanting a side income or passive income, we will show you how to achieve this by showcasing your skills and building a community that trusts you and pays you! (watch 1st lecture for free). One-time payment! No recurring fees! Life-long access to videos!
Our new book for kids: “Chinchu gets a superpower!” is now available!
Must-read book even for adults! This is something that every parent should teach their kids right from their young age. The importance of money management and decision making based on their wants and needs. Very nicely written in simple terms. - Arun.Buy the book: Chinchu gets a superpower for your child!
How to profit from content writing: Our new ebook for those interested in getting side income via content writing. It is available at a 50% discount for Rs. 500 only!
Want to check if the market is overvalued or undervalued? Use our market valuation tool (it will work with any index!), or you buy the new Tactical Buy/Sell timing tool!
We publish monthly mutual fund screeners and momentum, low volatility stock screeners.
About freefincal & its content policy Freefincal is a News Media Organization dedicated to providing original analysis, reports, reviews and insights on mutual funds, stocks, investing, retirement and personal finance developments. We do so without conflict of interest and bias. Follow us on Google News. Freefincal serves more than three million readers a year (5 million page views) with articles based only on factual information and detailed analysis by its authors. All statements made will be verified from credible and knowledgeable sources before publication. Freefincal does not publish any paid articles, promotions, PR, satire or opinions without data. All opinions presented will only be inferences backed by verifiable, reproducible evidence/data. Contact information: letters {at} freefincal {dot} com (sponsored posts or paid collaborations will not be entertained)
Connect with us on social media
- Twitter @freefincal
- Subscribe to our Youtube Videos
- Posts feed via Feedburner.
Our publications
You Can Be Rich Too with Goal-Based Investing
Published by CNBC TV18, this book is meant to help you ask the right questions and seek the correct answers, and since it comes with nine online calculators, you can also create custom solutions for your lifestyle! Get it now.Gamechanger: Forget Startups, Join Corporate & Still Live the Rich Life You Want
This book is meant for young earners to get their basics right from day one! It will also help you travel to exotic places at a low cost! Get it or gift it to a young earner.Your Ultimate Guide to Travel
This is an in-depth dive analysis into vacation planning, finding cheap flights, budget accommodation, what to do when travelling, and how travelling slowly is better financially and psychologically with links to the web pages and hand-holding at every step. Get the pdf for Rs 300 (instant download)