Updated December 21st, 2023 at 17:04 IST

PFRDA lets NPS users use UPI QR codes for depositing contributions

This advancement enables NPS account holders to set up a systematic investment plan (SIP) online through D-Remit.

Reported by: Business Desk
Representative image | Image:PTI

 

To streamline National Pension System (NPS) contributions, the Pension Fund Regulatory and Development Authority (PFRDA) has introduced the use of UPI QR codes for the Direct remittance process. This allows NPS subscribers to conveniently deposit their contributions, aiming to simplify and expedite the entire procedure. The introduction of QR code-based remittance is a significant step towards making NPS contributions more user-friendly and flexible, empowering subscribers to take charge of their retirement savings.

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Under this enhancement, subscribers can now transfer their contributions using unique QR codes specific to their Tier I and Tier II NPS accounts, distinct from the Permanent Retirement Account Number (PRAN). This method offers advantages such as same-day investments, periodic auto-debit options, flexibility in contribution frequency, and optimised long-term wealth creation through systematic investment planning.

Furthermore, this advancement enables NPS account holders to set up a systematic investment plan (SIP) online through D-Remit. SIPs in NPS provide the ease of regular contributions, fostering disciplined savings and leveraging rupee cost averaging for potentially higher returns.

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Utilising the D-Remit QR code involves obtaining a virtual D-Remit ID, adding it as a beneficiary in net banking, and setting up standing instructions for the SIP amount. Contributions made before 9:30 AM reflect the same-day Net Asset Value (NAV), simplifying the investment process for subscribers.

 

(With Reuters inputs)

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Published December 21st, 2023 at 17:03 IST