NPS contributions using UPI-enabled QR code: Five benefits, how to use the facility, and other details explained here

NPS contributions using UPI-enabled QR code: Five benefits, how to use the facility, and other details explained here

The Pension Fund Regulatory and Development Authority (PFRDA) has now allowed National Pension System (NPS) subscribers to deposit their contributions through the Unified Payments Interface (UPI) QR code directly under the D-Remit process. 

How this new initiative by PFRDA will benefit NPS subscribers

“The introduction of QR code – UPI for D-Remit (Direct Remittance) would help in making NPS contributions more accessible, efficient, and flexible. This initiative by PFRDA will empower NPS subscribers to take control of their retirement savings and benefit from the advantages of systematic investment planning. Under this new mechanism, subscribers can utilise the UPI QR Code to transfer their contributions. To enable the same the subscriber must set up his virtual D-Remit account with the Trustee bank of the NPS architecture,” said Kurian Jose, CEO, of Tata Pension Management.

Key Benefits of D-Remit QR code

1)Contributions received by the Trustee Bank (TB) before 9:30 am will be invested on the same day.

2)Subscribers can set up periodical auto-debit payments, such as monthly, quarterly, or half-yearly.

3)The flexibility to choose between one-time or regular contributions 

4)The D-Remit process leverages standing instructions and rupee cost averaging for long-term retirement wealth creation.

5)For NPS account holders with a PRAN, the D-Remit process opens up the possibility of starting a systematic investment plan (SIP).

How to use D-Remit QR code

  • To utilise D-Remit, subscribers need a virtual D-Remit ID with the trustee bank. 
  • This virtual account can only be used for remitting NPS contributions. 
  • Setting up an SIP through net banking involves adding the virtual account as a beneficiary to the subscriber’s net banking account and providing a standing instruction for the SIP amount. 
  • With a fund receipt cut-off time of 9:30 am, subscribers receive the same-day Net Asset Value (NAV) in their NPS accounts.

According to Kurian Jose, PFRDA’s decision to introduce QR codes to make contributions to NPS using UPI-enabled apps is a step in the right direction. 

Making payments using QR codes offers several conveniences like simplicity, speed, and versatility of the process which will boost the overall experience of subscribers in NPS, he added.

“The introduction of QR codes may draw in the younger subscribers who are extremely pro-technology and are always looking for technology-based conveniences like mobile payment apps, ride-sharing services, food delivery apps, social media platforms, streaming services, and smart home devices, among others,” said Kurian Jose.

Is the D-Remit virtual account the same as PRAN?

The D-Remit virtual account is distinct from the Permanent Retirement Account Number (PRAN). Furthermore, the virtual account numbers differ for Tier I and Tier II NPS accounts and so do the QR codes.

Disclaimer: The views and recommendations made above are those of individual analysts, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.




Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it’s all here, just a click away! Login Now!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint.
Download The Mint News App to get Daily Market Updates.


Published: 29 Dec 2023, 06:02 AM IST

Leave a Reply

Your email address will not be published. Required fields are marked *