National Pension System: Now get same-day NAV on NPS contribution
In order to ease the process of voluntary contribution to the National Pension System and optimise returns, the pension fund regulator has launched D-Remit (Direct Remittance). Subscribers can deposit their contributions through net banking by creating a Static Virtual ID linked to their permanent retirement account number (PRAN). Subscribers will get the same day NAV if the contribution is made through this mode before 8.30 am AM, on any bank working day.
Virtual ID for contribution
The Pension Fund Regulatory and Development Authority through a circular has said that all NPS subscribers (government/non-government/all citizens) who want to make voluntary contributions through D-Remit would be required to access the CRA system and generate Virtual ID linked to their PRAN. Post-authorisation of 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 through NEFT/RTGS/IMPS for their voluntary contributions. For fund transfer through online banking, the subscriber should write the narration as NPS contribution for D-Remit.
The creation of virtual identification number is a one time activity and can be obtained by visiting the e-NPS link in the websites of respective Central Record Keeping Agency. The ID will be attached to the PRAN for D-Remit. The links are
The subscriber will have to give an online declaration for compliance under Prevention of Money-Laundering Act, 2002 at the time of generating the virtual ID. While generating the virtual ID, the subscriber will be sent a one-time password (OTP) to the registered mobile number for authentication. Subscribers will get SMS/e-mail alert once the virtual ID is created. There is no additional cost to an NPS subscriber to avail the facility of D-Remit by creating virtual ID.
The minimum amount that can be contributed through D-Remit is Rs 500 per transaction for both Tier I and Tier II accounts. The cut-off time for availing the benefit of same day NAV will be 8.30 am as per the revised timelines for investment by liquid mutual funds by Securities and Exchange Board of India due to Covid-19 pandemic. The contribution received after 8.30 am on T-Day will be invested on the next bank working day.
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.
E-NPS, mobile app
There are various other ways to contribute to NPS such as e-NPS, mobile app or through POP-SP. Contributions through eNPS are credited to the subscriber’s account on T+2 basis after receipt of clear funds from the payment gateway service provider. Once the units are credited to the subscriber’s NPS account an SMS and email alert is sent.
One can visit eNPS website (https://enps.nsdl.com) and click on ‘Contribution’ Tab. If a subscriber is contributing through NPS account login, select ‘Contribute Online’ under ‘Transact Online’ Tab, and then he will be redirected to eNPS portal.
The subscriber will have to enter the details of his PRAN and date of birth. The subscriber will have to select the option (SMS / email) to receive the OTP to verify PRAN. After entering the contribution details, the system will calculate the total amount payable after adding applicable charges. Then the subscriber will have to select the payment gateway option, read and accept the declarations and click on ‘Make Payment’.
The subscriber will be redirected to the payment gateway site where he can pay through net banking / debit card / credit card. For NPS subscribers there are five different charges such as CRA (NSDL and Karvy), POP, custodian, investment management fee, NPS Trust.