NPS Scheme: Pensioners alert! PFRDA simplifies contribution rules for these National Pension System account holders

NPS Scheme: The Pension Fund Regulatory and Development Authority (PFRDA) has decided to further simplify the National Pension System (NPS) contribution rules for the Non-Resident Indians (NRIs). The pension regulator has extended the option of contribution into NPS through D Remit to  NRI-NPS Subscribers who can contribute to their NPS accounts from funds in their NRO/NRE accounts. Also at the time of withdrawal/Exit, the proceeds of NPS shall be credited into NRO/NRE account of NRI subscribers and repatriation would be as per applicable FEMA guidelines.

Speaking on the benefit of this rolled out a feature to NRI subscribers of the NPS; the PFRDA said, "D Remit or Direct Remittance offers the most convenient mode of depositing voluntary contributions into NPS which also optimizes the long term retirement wealth creation by offering same-day NAV. Through D Remit, not only one time contributions can be made but also periodic NPS contributions can be automated for any defined amount and for any defined date, from the Subscribers bank account."

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How NPS calculator will work now

Under D Remit, the contributions received at NPS Trustee Bank before 9.30 AM on any bank working day (other than Saturday, Sunday, Bank Holidays etc) shall be considered for same-day investment. The amount received post 9.30 AM shall be considered for investment on the next bank working day.

D Remit feature was rolled out on 1st October 2020. Till date, 1.23 lakh D Remit IDs have been created by NPS Subscribers to avail the benefit of D Remit and same day investment. More than Rs 130 crore of NPS voluntary contributions have been deposited into NPS by using D Remit in the last four months.