The National Pension System (NPS) is one of India's most popular retirement saving schemes with tax advantages and market-linked returns. But one complaint among investors has been the waiting time for their contribution to reflect in the system. Typically, when you transfer money to your NPS account through net banking or even at a branch of your bank, it may take a day to three working days to credit units. This lag can be costly if markets end up moving in the meantime. To offset this, the Pension Fund Regulatory and Development Authority (PFRDA) introduced the D-Remit facility.
What is D-Remit?
D-Remit, Direct Remittance, is a facility that allows NPS subscribers to transfer contributions directly from their bank account to their NPS Tier I or Tier II account. After you register and are assigned a Virtual Account Number (VAN) in place of your NPS account, you can use internet banking to set up payments. Contributions made before 9:30 a.m. on a working day are credited to your NPS account at the same day's NAV, enabling faster investment and better synchronicity with market situations.
Key strengths of D-Remit
D-Remit boasts the biggest strength of being quick. With same-day NAV, your contribution begins earning returns without any delay. This is very beneficial for disciplined investors who want to get maximum compounding in the long term. Another advantage is ease: you can set up standing orders through your bank to have automatic deposits at regular intervals, thereby improving investment discipline. Deposits to both the Tier I and Tier II accounts are also allowed by D-Remit, offering flexibility for retirement savings and voluntary investments.
Eligibility and how to use it
To use D-Remit, you must first get a Virtual Account Number through your NPS Central Recordkeeping Agency (CRA)—NSDL or KFintech. Easy: log in to your NPS account on the web, apply for a D-Remit account, and link it to your registered bank account. Once the VAN has been created, you can remit money via net banking or UPI. Sameday contributions received before the cut-off time (9:30 a.m.) are credited same day NAV, and those received after will be credited the next business day.
Things to remember
D-Remit streamlines processes, but not on the spot. Cut-off time or holiday transfers will be credited the next business day. Also, you will make contributions only from the bank account linked to your NPS—transfers from other accounts will not be entertained. Importantly, to avail the facility, you must first submit a one-time eNACH or OTP-based mandate with your CRA. After activation, the mechanism is hassle-free and requires minimal effort from the investor.
Why D-Remit matters
For retirement planning, time is crucial. By reducing the gap between contribution and investment, D-Remit allows investors to capture market movements better and leverage the
effect of compounding over the years. In a regime like NPS where long-term discipline is key, this facility gets your money working earlier, adding value to your retirement corpus.
FAQs
Q. Is D-Remit available to all NPS subscribers?
Yes, Tier I as well as Tier II account holders can avail D-Remit. All you need to do is generate a Virtual Account Number through your CRA.
Q. Do I need to pay an additional fee for D-Remit?
No, there are no additional fees. The facility is free and made available for quicker and smoother contributions.
Q. What happens if I do the transfer after 9:30 a.m.?
Donations made after the cut-off date will be credited at the next working day's NAV. For same-day NAV, ensure that transfers are received before the daily cut-off date.
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