PFRDA booster for UPI Transactions

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PFRDA booster for UPI Transactions

 PFRDA is regulating authority for National Pension Scheme.

Subscribers in NPS are Government of India employees, State Government employees and employees of private institutions/organizations & unorganized sectors.

The contributory pension system was notified by the Government of India on 22nd December, 2003, now named the National Pension System (NPS) with effect from the 1st January, 2004.

National Pension System (NPS) is a defined contribution pension scheme.



NPS enables an individual to undertake retirement planning while in employment. With systematic savings and investments, NPS facilitates accumulation of a pension corpus during their working life.

NPS is designed to deliver sustainable solution of having adequate retirement income at old age or upon superannuation.

NPS is mandatory for Central Government employees joining services on or after 1st January 2004 and has been adopted by almost all the State Government for their employees.

NPS can be subscribed by any Indian citizen (resident/non-resident/overseas) aged between 18-70 years on a voluntarily basis.

NPS can be adopted on a voluntarily basis by an Employer as a retirement benefit scheme for its employees.

NPS has two investment accounts i.e Tier 1 and Tier 2.

There are few differences between Tier 1 and Tier 2.

PFRDA vid Cir dt 11/08/2022 announced the launch of UPI handle to enable subscribers for deposition of their NPS contributions.

The UPI Handle is one more contribution channel, in addition to IMPS/RTGS/NEFT

The complete circular can be read @ https://www.pfrda.org.in/writereaddata/links/circular%20-%20voluntary%20contributions%20under%20d-remit%20enabled%20through%20upi74366c96-a558-4b97-8f78-044b8babb276.pdf

NPS subscribers first have to create a ‘D Remit virtual Account number’.

It is important to note that the ‘D Remit Virtual Account Number’ is different from associated Permanent Account Number (PRAN) and it starts from either 6001 or 6002.

‘D Remit Virtual Account Number’ is also different for Tier I & II.

Since the minimum value of contribution under D-Remit is equal to or above Rs.500/, those UPI based contributions which are below Rs 500/- shall be returned by Trustee Bank.

The reversal of funds will be as per the normal banking timelines. It will be a good feature, if the contributions below INR500/- to the PFRDA handle are returned at NPCI level only.

A small technology intervention for this will be great.

Those contributions received for PRANs which are frozen/inactive would be returned by TB post receipt of confirmation from the respective Central Record Keeping Agency (CRA).

The UPI handle for the D Remit is PFRDA.15digitVirtualAccount@axisbank.

It will be challenge to get back the funds if the same are transferred to a wrong ‘D Remit Virtual Account Number’.

It is better if NPS subscribers take utmost care while remitting the NPS contributions via ‘D Remit Virtual Account Number’.

 

 

 

 

Read more about NPS Tier 1 and Tier 2 @ https://www.godigit.com/finance/nps/tier1-vs-tier2-in-nps

 

Disclaimer: These are my personal views only. The bottom line is Safe ePayments. Nothing More – Nothing Less.

 

         

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