The Pension Fund Regulatory and Development Authority (PFRDA) has announced that a trail commission of 0.20 percent of the NPS D-Remit contribution amount (minimum Rs 15 and maximum Rs 10,000) will be paid to POPs from September 1, 2022.
The trail commission on D-Remit contributions made by NPS subscribers who were on-boarded by the respective PoPs will be similar to eNPS (another mode of online contribution), stated the PFRDA circular issued on August 22, 2022.
According to the PFRDA circular dated Aug 22, 2022, “The trail commission to PoPs for D-Remit Contributions of the associated Subscribers shall be @ 0.20% of the contribution amount (Minimum Rs 15 and Maximum Rs 10,000) similar to eNPS. The applicable charges would be recovered by unit deduction on periodical basis.” The commission, according to the circular, will encourage their significant efforts and resources used to source NPS accounts and will assist them in continuing their NPS outreach efforts.
PFRDA had increased the charges of NPS-related services offered at point of presence (POP) outlets with effect from February 1, 2022. According to a notification on the PFRDA website dated January 31, 2022, “Processing of exit and withdrawal service charge is newly introduced, processing of exit and withdrawal is capped at 0.125% of the corpus with minimum Rs 125 and max to be charged is Rs 500.” Further, the service charge of eNPS has been increased from 0.10 percent of the contribution to 0.20 percent of the contribution, subject to a minimum of Rs 15 and maximum Rs 10,000. This revision is effective from February 15th, 2022.
Also read: Charges of these NPS services increased: Check details
PFRDA launched the D-Remit (Direct Remittance) facility so that subscribers could easily deposit their voluntary contributions by making a static Virtual ID linked to their PRAN and remitting the amount from their bank account.
What are PoPs?
Point-of-presence (PoPs) are banks, non-banking financial companies, and National Pension System register and service subscribers (NPS).
NPS d-remit facility
As a “subscriber centric measure,” D-Remit was created to enable people to transfer funds from their savings bank accounts to PRANs using Net Banking, IMPS, or UPI. A D-Remit contribution must be at least Rs. 500 in value; any UPI-based contributions that are less than Rs. 500 will be returned by the Trustee Bank.
How it works
If Trustee Bank receives the contributions before 9.30 AM, the feature will offer same-day NAV in an effort to maximise investment return. Its simplicity of use, operational convenience, and special ability to set up SI/auto debit, change the auto debit amount, pause auto debit, etc. have made it very well-liked.
Subscribers should be aware that the D Remit virtual Account, which begins with either 6001 or 6002, is distinct from the PRAN associated with it. Tier I and II NPS accounts have different D remit Virtual Account numbers.
