How to accelerate your NPS investments

Copyright © HT Digital Streams Limit all rights reserved. Unlock faster NPS investments. D-Remit offers NAV on the same day to your contributions, directly through your phone. (AI-generated image) Summary A lesser-known NPS feature allows subscribers on the same day NAV on contributions, cuts the two-day delay and enables SIPs directly by banks. Tired of waiting two days for your NPS investment (NPS) to show up? A facility called D-Remit promises to change it by giving subscribers to the net asset value of the same day (NAV) about their contributions-to reduce the usual T+2-settlement rear. NPS transactions usually take two working days to be processed. This means that if you buy units today, the NAV will only apply two days later. With D-Remit, the process is immediately: The money flows directly to the curator bank (currently Axis Bank), and avoids the detour through central record agencies (CRAs) and points of presence (POPs). How D-Remit works D-Remit connects a subscriber directly with the Trustee Bank through a virtual account ID. This account can only be used for NPS contributions. To open one, you need: an active NPS permanent retirement account number (pran internet banking with your bank a registered mobile number or e -mail linked to the NPS account for OTP verification Once in place, go to the ENPS website, select ‘National Pension Scheme’ and select the option ‘Same Day Nav’. Enter your pran, verify via OTP and then choose whether to create the account for Tier I or Tier II. A separate virtual account is needed for each. Approval usually takes one working day, after which the Cra notifies you. ‘The sixth digit of your virtual account with’ 1 ‘or’ 2 ‘is the identifier for Tier I and Tier II respectively. Set it to your bank as soon as the virtual account is generated, sign in to your internet banking portal and add it as a beneficiary. The name of the subscriber (according to Cra records) must be entered as the beneficiary name. IMPORTANT DETAILS: IFSC: UTIBOCCH274 Account Type: Current account (if necessary) After adding the beneficiary, you can start contributing. To get on the same day, funds must reach the curator bank before 11 o’clock. Contributions made thereafter are processed with the next working day’s NAV. A minimum of £ 500 is required per transaction. If you start a SIP once your virtual account has been added as a beneficiary, your contributions can automate. “To set up your SIP, follow the process of adding the virtual account as a beneficiary once your virtual account has added. Post -adding the virtual account as a beneficiary, puts a standing instruction through the same Internet banking to invest a specific amount on your NPS account. not. A processing cost of 0.20% of the contribution applies to £ 10,000 per transaction. By comparison, contributions by POPs cost up to 0.50%, at £ 25,000 per transaction. According to the NPS Trust website, an account can open directly with cra’s, with fees between £ 3.36 and £ 3.75. Kuldeep Parashar, founder of the CEO of Pensionbox, said his platform also allows SIPs, but through the UPI Autopay mechanism. Unlike D-remit, where users get the same day NAV, UPI Autopay transactions occur on a T+1 basis. ‘In products such as NPS, the NAV does not vary much daily, and if you look at the long-term nature of NPs, the minor delay in Nav calculation would not differ much. Catch all the business news, market news, break news opportunities and latest news updates on live mint. Download the Mint News app to get daily market updates.