NPS: Pensioners alert! PFRDA announces revision in cut-off time under D-Remit for same-day NAV - All you need to know

It's an important information for National Pension System (NPS) subscribers as Pension Fund Regulatory and Development Authority (PFRDA) has announced a revision in cut off time under D-Remit for same-day Net asset value (NAV).

D-Remit facility 

Vide Circular no. PFRDA/ 2020/ 44/ SUP-CRA/17 dated 01st Oct 2020, PFRDA had introduced the D-Remit facility for the subscribers of all the sectors of NPS wherein they could deposit their voluntary contributions with greater ease by creating a static virtual ID linked to their Permanent Retirement Account Number (PRAN), and get same day's NAV, provided contributions are received at Trustee Bank till 8.30 am.

Timing revised 

Effective from 12th November 2020, the said timing has been revised and now the voluntary contributions received at Trustee Bank till 9.30 am. On any bank working day (other than Saturday, Sunday and Holidays) would be considered for giving the subscriber the same day's NAV. The contributions received post 9.30 am. shall be considered for next working day's NAV.

The users of D-Remit may note that the cut-off time i.e. 9.30 am. is for the amount received at Trustee Bank and accordingly the remittance can be effected from the respective Subscribers' Bank Account with sufficient margin  so that the contributions are received at Trustee Bank before 9.30 AM, to get the benefit of same day's NAV.

D Remit 

D Remit provides the benefit of same day's NAV and also the facility of setting up of Auto Debit through Standing Instructions from the Subscribers Savings Bank Account for a defined periodical contribution.

PFRDA had enabled multiple modes of depositing NPS Contributions by the subscribers. D-Remit is one of the digital option enabled recently for the benefit of NPS Subscribers, which empowers the Subscribers to schedule contributions on any given day and also optimizes investment benefit with the same day NAV in a cost effective manner.

Since the rolling out of D-Remit feature by PFRDA with effect from 1st October 2020, more than 40000 D-Remit Virtual IDs have been created and NPS voluntary contributions of Rs.13 cr. had been deposited using this process. The process is getting momentum and as such on 11th November 2020 contribution of Rs.1.8 cr. was deposited through D-Remit process.