One of the problems that NPS (National Pension System) subscribers have had to encounter is the lack of automated investment options. In the mutual fund or life insurance landscape, investors can enjoy hands-free investing thanks to investments that happen regularly and automatically. Now, NPS seems to have provided a solution that can automate systematic investments in NPS. In this article, we learn how you can automate NPS investments. Read on.

Direct Remittance

Direct remittance (D-Remit) is a mode that allows existing NPS subscribers to deposit their contributions by creating a virtual ID linked to their PRAN or Permanent Retirement Account Number. PRAN is an exclusive 12-digit numerical code allotted to every person who has subscribed to NPS.

Investments routed through D-Remit can get same day NAV if the contribution is received at bank by 8.30 AM on any bank working day.

NPS ‘SIP’

D-Remit enables a subscriber to set up systematic investment plan through auto debit or standing instructions in net banking.

In this way, periodical and regular contributions can be made via daily, monthly, quarterly etc.

Do note that the minimum value of D-Remit is Rs 500 per transaction.

Process described

A NPS subscriber needs to generate a virtual ID. This virtual ID will be unique to that subscriber.

Do remember you will need to be a net banking user to use the D-Remit feature.

The unique virtual ID can be created by going to either of the links mentioned below.

On the link page, you will need to give PRAN, Date of Birth. Then, you have to request One Time PAssword (OTP) through SMS (mobile number) or email. Once the PRAN is verified, you can proceed.

1. https://cra-nsdl.com/CRAOnline/VirtualIdCreation.html

2. https://enps.kfintech.com/dremit/prelogindremit/

Next, you will have to log in to your net banking account.

Next, add the “Virtual ID” (you have already created) as a beneficiary with the IFSC details of the Trustee Bank (UTIB0CCH274). The bank is AXIS BANK and the branch is called AXIS BANK, CENTRALISED COLLECTION HUB.

Next, set periodic auto debit/standing instructions for NPS contribution using your own net banking facility.

While making fund transfer using the D-Remit option, kindly write ‘NPS Contribution for D remit’ in the fund transfer message/description.

Always remember that there is no additional cost to NPS subscribers to avail the facility of D-Remit.

Kumar Shankar Roy

Kumar Shankar Roy is contributing editor with RupeeIQ. Kumar is a financial journalist, with a functional experience of 15 years. He tracks mutual funds, insurance, pension, PMS, fixed income/debt and alternative investments markets closely. He has worked for The Times of India, The Hindu Business Line, Deccan Chronicle Group, DNA, and Value Research, among others, across different cities in India. He is deeply interested in marrying data insights with actionable opinion. He can be contacted at [email protected].

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