PFRDA Extends Direct Remittance For Non-Resident Subscribers Of National Pension System
Pedestrians wearing protective masks walk in Mumbai. (Photographer: Dhiraj Singh/Bloomberg)

PFRDA Extends Direct Remittance For Non-Resident Subscribers Of National Pension System

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The Pension Fund Regulatory and Development Authority on Thursday said NRI subscribers are allowed to use the direct remittance, or D-Remit, facility that will facilitate automated contributions to National Pension System from their bank accounts.

PFRDA has now decided to extend the option of contribution into NPS through D-Remit to NRI-NPS subscribers, who can contribute to their NPS accounts from funds in their Non-Resident Ordinary or Non-Resident External Account accounts, it said in a release.

Also, at the time of withdrawal, the proceeds of NPS shall be credited into NRO/NRE account of NRI subscribers, and repatriation would be done as per applicable FEMA guidelines, PFRDA said.

D-Remit offers a convenient mode of depositing voluntary contributions into NPS and also optimises the long-term retirement wealth creation by offering same-day NAV (net asset value), it added. Through this, periodic NPS contributions can be automated for any defined amount and for any defined date from the subscribers bank account.

Under D-Remit, the contributions received at trustee bank before 9:30 a.m. on any bank working day are considered for same-day investment.

PFRDA had rolled out the D-Remit feature for automatic contributions in October 2020.

Also read: Budget 2021 Caps Tax-Free Returns On Provident Fund. Here’s What You Need To Know.

Till date, 1.23 lakh D-Remit IDs have been created by NPS subscribers to avail the benefit of D-Remit and same-day investment, said the regulator.

PFRDA said more than Rs 130 crore of NPS voluntary contributions have been deposited into NPS by using D-Remit in the past four months.

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