Electronic transfers

Why define a SIP and how to add a virtual account as a beneficiary

Why should you define a SIP: The National Pension System (NPS) is a long-term investment option to meet income needs during retirement.

Same day NAV functionality has been introduced in NPS to make NPS a one stop shop for all your investing needs.

Individuals can start a systematic or SIP investment plan in NPS using the D-Remit feature.

Giving standing instructions to the bank will allow you to set up a direct debit from your account every month, quarter or year.

D-Remit Facility in NPS:

D-Remit is an electronic method of transferring money directly from your bank account to Trustee Bank, allowing you to receive same day net asset value for your NPS investment.

It also makes it easier for subscribers to deposit their voluntary payments. To use D-Remit, a subscriber just needs a Trustee Bank virtual ID (account).

The Trustee Bank virtual account can only be used to send NPS contributions. The minimum SIP amount should be Rs 500.

The prerequisites for initiating D-remit are:

  • Active NPS PRAN
  • Mobile Not updated in NPS
  • Ease of internet banking with any bank

How to configure SIP in NPS for your investment

Step 1: Visit the eNPS website

2nd step: Click on ‘National Pension System

Step 3: Click ‘Get Same day NAV’ (Register for D-remit) and click ‘Continue’

Step 4: Enter the Permanent Retirement Account Number (PRAN), Date of Birth (DoB), One Time Password (OTP) receipt mode and captcha for virtual account registration.

Step 5: Click on ‘verify PRAN’. After verifying the PRAN, OTP will be sent to your registered mobile number.

Step 6: Select the account – Level I or II for which the virtual account should be created and click on “Generate a virtual account”

Step 7: Once you are done, you will receive an acknowledgment

Step 8: You can view the virtual account registration details by clicking “OK”.

Step 9: The NPS Trust will need to confirm the virtual account. The next business day, the same will be recorded.

Step 10: You will receive an email confirming your activation request. Once your virtual account is authorized, you will receive another confirmation email.

Note that the Tier I and Tier II account ID is the sixth digit of your virtual account, which is either “1” or “2”.

It is necessary to generate different virtual account numbers for NPS Tier I and Tier II accounts.

How to add this Virtual Account as a beneficiary?

The subscriber must log in to the Net Banking function of his bank and add the virtual account as a beneficiary account with his name as the beneficiary name.

For fund transfers, the subscriber must provide “UTIB0CCH274” as the Axis bank (fiduciary bank) IFSC code and the account type as “current account”, if required.

After entering the beneficiary information, the person can invest in the NPS with a minimum of Rs 500 according to his convenience and benefit from the net asset value on the same day. The subscriber can also set up standing instructions for their NPS account.

Points to note:

  • The cut-off time for receiving funds for today’s NAV is 9:30 a.m. If funds are received after 9:30 a.m. (or on a non-business day such as Saturday, Sunday or a holiday), the next business day will apply. Please keep in mind that the specified deadlines are subject to change due to regulatory changes.
  • Please keep in mind that the minimum contribution amount via the D-Remit option is Rs. 500 for both tiers.
  • To use the D-Remit to Trustee Bank feature, please use RTGS/NEFT/IMPS as the remittance mechanism.

Why should you define a SIP

  • SIP allows you to invest in a disciplined and progressive way, by supporting you in building up retirement capital. Unlike a one-time investment, compound interest provides superior long-term benefits. Also, there is no need to try to time the market.