D-Remit Facility For Non-Resident Subscribers Under NPS Extended By PFRDA

On Thursday, the Pension Fund Regulatory and Development Authority (PFRDA) confirmed that NRI subscribers are authorized to use the direct remittance service, or D-Remit, to make automated contributions from their bank accounts towards NPS. PFRDA has now proposed to enhance the NPS (National Pension System) contribution alternative by D-Remit to NRI-NPS participants, who can make deposits from their Non-Resident Ordinary (NRO) or Non-Resident External Account (NRE) accounts towards NPS. As per PFRDA the proceeds of NPS will also be allocated to the NRO/NRE account of NRI subscribers at the end of the tenure or at the time of withdrawal and resettlement will be conducted as per the relevant FEMA regulations. D-Remit provides a simple way to make voluntary deposits towards NPS and also enhances the formation of long-term pension capital by providing NAV (net asset value) on the same day.

Via this, regular NPS contributions from the subscribers' bank account can be automated for any given amount and for any specified date. Under D-Remit, for the same-day investment, deposits provided at the trustee bank until 9.30 a.m. on every bank operating day are regarded. The D-Remit function for automated contributions was rolled out in October 2020 by PFRDA. To date, NPS subscribers have developed 1.23 lakh D-Remit IDs to take advantage of D Remit's benefit and contribution on the same day. PFRDA stated that in the past four months, more than Rs 130 crore of NPS voluntary contributions have been accumulated into NPS through D-Remit facility.