You can now pay your National Pension System (NPS) contribution through Unified Payments Interface; here’s how to do
A real-time payment system known as the Unified Payments Interface (UPI) allows for the immediate transfer of funds from a mobile platform.With a UPI-enabled bank account, you can easily create a UPI ID and use it to send and receive money.
Through the country's instant, real-time payment system, Unified Payments Interface (UPI), you can now pay your NPS contribution.Subscribers can deposit contributions through D-Remit using a UPI handle provided by the Pension Fund Regulatory and Development Authority (PFRDA).Using UPI, you can contribute to your NPS account in the following manner.
UPI: What is it?
A real-time payment system known as the Unified Payments Interface (UPI) allows for the immediate transfer of funds from a mobile platform. With a UPI-enabled bank account, you can easily create a UPI ID and use it to send and receive money.
How to activate UPI
Step 1: Download the UPI application from the App Store/Banks website
Step 2: Register UPI ID (VPA) of your choice e.g., abc@upi
Step 3: Set MPIN for authentication of transaction
Step 4: Link the bank and account number with the VPA
Here is how to make contribution to NPS account:
Step 1: User has to select UPI as mode of payment option. Payment through your UPI is only up to Rs.2000/-(Including Charges).
Step 2: Provide the Virtual Payment Address (VPA)
Step 3: Payment notification will be received on UPI application
Step 4: User has to login to UPI application and confirm the transaction within the defined time limit
Step 5: User needs to enter the MPIN to authenticate the transaction
According to the NPS website, the user must enter the MPIN in order to verify the transaction. Important FAQs regarding NPS contribution 1.Can someone else contribute on the NPS subscriber's behalf?
No. The employer, a Central or State Government Office, deducts the subscriber's salary from the contribution amount for Tier I. In addition, subscribers can take advantage of an exclusive tax benefit by voluntarily contributing more to their Tier I account than is required.
2.Is it possible for subscribers to contribute to an NPS account prior to receiving a PRAN Card?
Yes. Only a Permanent Retirement Account Number (PRAN) is required to contribute to NPS. Contributions can be made regardless of whether a Subscriber receives a PRAN card once PRAN is issued to them.
3.When will the units in Tier-II be credited to the NPS account?
There may be a delay of up to 15 working days at the time of initial registration for Tier II accounts, and up to 7 working days for subsequent contributions, between the time a subscriber deposits Cash, DD, or cheque with the POP-SP and the time that units are credited to their account.
4.Is it possible for subscribers to contribute to the NPS account prior to receiving their PRAN Card?
Under NPS, the CRA assigns each subscriber account a unique PRAN that allows them to be identified.Once the PRAN is generated, the Nodal office can send money to a Tier I account without waiting for the CRA to send the PRAN Kit.