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BIG change in National Pension Scheme: PFRDA modifies rules on trail commission; here is all you need to know
The D-Remit (Direct Remittance) feature was made available by PFRDA to subscribers so they could more easily deposit their voluntary contributions by generating a static virtual ID connected to their PRAN and remitting the money from their bank account
Highlights
- PFRDA permits trail commission payment through points of presence for National pension system accountholders.
- The D-Remit feature was made available by PFRDA to subscribers so they can easily deposit their voluntary contributions.
- D-Remit views as a 'subscriber centric measure' to enable contributions into PRANs from their savings bank account through Net banking/UPI.
New Delhi: The Pension Fund Regulatory and Development Authority (PFRDA) has permitted trail commission payment through the Points of Presence (POPs) for National Pension System (NPS) accountholders in an effort to encourage POPs. The pension fund regulator made it clear that trail commission on NPS contributions made through D-Remit by subscribers who were on-boarded by the relevant PoPs will be equivalent to eNPS (another means of online contribution).
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The trail commission to PoPs for connected Subscribers' D-Remit Contributions must be at 0.20 percent of the donation (minimum 15 and maximum 10,000) in a manner comparable to eNPS. The relevant fees would be recouped on a regular basis through unit deduction.
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Annoucing the notice on NPS trail commission, the PFRDA said, "In order to support the Points of Presence (POPs) for their significant efforts and resources deployed by them for sourcing NPS Accounts and make them sustain their NPS outreach efforts, it has been decided that the trail commission shall be payable to POPs w.e.f. 01.09.2022. The trail commission on contributions made through D-Remit will be similar to eNPS (other mode of Online contribution) by those subscribers who were on-boarded by the respective PoPs. The charge structure for POPs were provided by PFRDA vide its circular dt. 31.01.2022."
The D-Remit (Direct Remittance) feature was made available by PFRDA to subscribers so they could more easily deposit their voluntary contributions by generating a static virtual ID connected to their PRAN and remitting the money from their bank account.
D-Remit envisaged as a 'subscriber centric measure' to enable one to deposit contributions into PRANs from their savings bank account through Net banking/IMPS/UPI. The feature intends to optimize investment return by offering same day NAV, if Trustee Bank receives the contributions before 9.30 AM. It has become very popular because of its ease of use, operational convenience, the unique facility of setting up SI/auto debit, changing the auto debit amount, pause auto debit etc.