PFRDA allows NPS subscribers to deposit contributions through UPI QR code

Under this new mechanism, subscribers will utilise the UPI QR Code to transfer their contributions.

Pension fund regulator PFRDA on Wednesday allowed National Pension System (NPS) subscribers to deposit their contributions directly under the D-Remit process through the Unified Payments Interface (UPI) QR code. This advancement aims to simplify the contribution process, making it more accessible and efficient for NPS participants, the Pension Fund Regulatory and Development Authority (PFRDA) said in a statement.

The National Pension System (NPS) has long been a reliable savings avenue for those looking to secure their financial futures, it said. "Under the NPS, subscribers make voluntary contributions to their NPS Tier I and II accounts. However, the process of directly depositing these contributions, known as D-Remit or Direct Remittance, has just become more user-friendly," it said. The introduction of QR code – UPI for D-Remit is a positive and revolutionary step towards making NPS contributions more accessible, efficient, and flexible, it said.

This initiative by PFRDA empowers NPS subscribers to take control of their retirement savings and benefit from the advantages of systematic investment planning, it said. Under this new mechanism, subscribers will utilise the UPI QR Code to transfer their contributions. It is important to note that the D-Remit virtual account is distinct from the Permanent Retirement Account Number (PRAN), it said. Furthermore, it said, the virtual account numbers differ for Tier I and Tier II NPS accounts and so do the QR codes.

Highlighting the benefits of D-Remit, it said, that same-day investment can be done, periodic auto debit or One-Time or Regular Contribution can be done. The D-Remit process leverages standing instructions and rupee cost averaging for long-term retirement wealth creation, it said. "For NPS account holders with a PRAN, the D-Remit process opens up the possibility of starting a systematic investment plan (SIP). This can be done online (D-Remit), allowing subscribers to set up standing instructions for SIP payments to their NPS accounts," it said. To utilise D-Remit, subscribers must possess a virtual D-Remit ID with the trustee bank, it said, adding, this virtual account can only be used for remitting NPS contributions.