National Pension System contributions through UPI; here’s how to do

You can now pay your National Pension System (NPS) contribution through Unified Payments Interface (UPI), the country’s instant real-time payment system. The Pension Fund Regulatory and Development Authority (PFRDA) has a UPI handle for depositing contributions through D-Remit for the benefit of subscribers. Here is how to make a contribution to one’s NPS account using UPI.

What is UPI?

Unified Payments Interface (UPI) is a real-time payment system that transfers funds instantly from a mobile platform. You can simply create a UPI ID with a UPI-enabled bank account and use it to send/transfer money.

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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., [email protected]

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

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Important FAQs to know on NPS contribution as per the NPS website

1. Can someone else make a contribution on behalf of the NPS subscriber?

No. Contribution amount in case of Tier I is deducted from the Salary of the Subscriber by the employer i.e. Central/ State Government Office. Further, subscriber can voluntarily contribute over and above mandatory contribution in Tier I account to avail exclusive tax benefit.

2. Can a Subscriber make contributions in an NPS account before receipt of PRAN Card?

Yes. To contribute in NPS, only Permanent Retirement Account Number (PRAN) is required. Once PRAN is allotted to a Subscriber, a contribution can be made irrespective of whether PRAN card is received or not.

3. When will the units be credited to the NPS account in Tier-II?

For Tier II account, there will be a time lag between the time a subscriber deposits Cash/DD/cheque with the POP-SP and the time of credit of units to his / her account, which may range up to 15 working days at the time of initial registration and up to 7 working days for subsequent contribution.

4. Can a Subscriber make contributions in the NPS account before receipt of PRAN Card?

Under NPS, Subscriber accounts are identified by unique PRAN allotted to them by CRA. The Nodal office can remit for Tier I account, once PRAN is generated and need not wait till receipt of PRAN Kit from CRA.

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