Pension Contribution through UPI possible now; PFRDA enables this facility

Big facility enabled by the pension regulator for pensioners! Subscribers of two pension schemes of the Pension Fund Regulatory and Development Authority will be able to make contributions through UPI as well, the authority said on Friday.

Subscribers of National Pension System (NPS) and Atal Pension Yojana (APY) are allowed to deposit their voluntary contributions under Direct Remit (D-Remit) into Tier I/II through net banking account by using IMPS/NEFT/RTGS.

"Now, the contributions through UPI is enabled to further ease the process of depositing contributions. The UPI handle for the D Remit is PFRDA.15digitVirtualAccount@axisbank," the Pension Fund Regulatory and Development Authority (PFRDA) said in a release.

The PFRDA said contributions received before 9:30 AM will be considered for investment on the same day, while those after that will be counted for next day investment.

The PFRDA-administered two schemes NPS and APY are targeted towards organised and unorganised sector employees, respectively.

Introduced in December 2003, it is mandatory for central government employees (except armed forces) who joined service from January 1, 2004, to subscribe to NPS. In May 2009, it was extended to private and unorganised sector on voluntary basis.

Corporate sector offers NPS to their employees on mandatory or voluntary basis.