PFRDA introduces D-Remit as an additional mode of NPS contribution

May 16, 2020 | by Avantis RegTech Legal Research Team

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Labour Compliance

The Pension Fund Regulatory and Development Authority (PFRDA) on May 12, 2020 has introduced the mode of Direct Remittance (D-Remit) wherein the NPS Subscriber under Government, Non-Government and all Citizens Model would be able to deposit contribution through Virtual ID linked to Permanent Remittance Account Number (PRAN). The D-Remit system aims at optimizing investment return by providing subscribers the Net asset value (NAV) of the date of deposit of contribution if contribution is made before cut-off time. The subscribers may set up systematic investment through net banking by which periodical and regular contributions can be made.

Once Virtual ID is created, the subscribers can log into their Net Banking and add Virtual ID with Bank details as Beneficiary to transfer the contribution. The Trustees Banks are advised to develop a suitable platform for this purpose.

There is no additional cost to avail the facility of Direct Remittance for creating Virtual ID.

[Circular No: PFRDA/2020/15/SUP-CRA/6]


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