PFRDA Permits NPS Subscribers To Use UPI QR Code For Depositing Contributions

Pension fund regulator PFRDA, on Wednesday, said that it has 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 development is aimed to simplify the contribution process, making it more accessible, easy and efficient for NPS participants, the Pension Fund Regulatory and Development Authority (PFRDA) said in a circular.

PFRDA said that under the NPS, subscribers make voluntary contributions to both of their NPS Tier I and II accounts. After the recent advancement, the process of directly depositing these contributions, known as D-Remit or Direct Remittance, has just become more user-friendly, it added.

The introduction of UPI QR code UPI D- Remit is a step in the right direction making NPS contributions more efficient, accessible and flexible, PFRDA said.

This initiative by PFRDA strengthens NPS subscribers to take control over their retirement savings and benefit from the usage of systematic investment planning, the circular said.

It is also important to note that the D-Remit virtual account is different from the Permanent Retirement Account Number (PRAN), the circular said.

Furthermore, the circular said, that the QR codes differ and the virtual account numbers differ for Tier I and Tier II NPS accounts.

Highlighting the benefits of D-Remit, the circular said that, same-day investment can be done using this mechanism, periodic auto debit or One-Time or Regular Contribution can be done.

The D-Remit process leverages rupee cost averaging and standing instructions for long-term retirement wealth creation, it said.

To utilise the benefits of D-Remit, subscribers must possess a virtual D-Remit ID with their trustee bank, PFRDA said, adding, this virtual account can only be used for remitting NPS contributions.