To encourage POPs, the Pension Fund Regulatory and Development Authority (PFRDA) has permitted trail commission payments through Points of Presence (POPs) for National Pension System (NPS) accountholders. It has been clarified by the pension fund regulator that trail commissions on NPS contributions made via D-Remit by subscribers onboarded by the relevant PoPs will be equivalent to those on eNPS (another way of making contributions online).
Subscribers’ D-Remit Contributions must be trailed to PoPs in a manner comparable to eNPS at 0.20 percent (minimum 15 and maximum 10,000). Unit deductions would be used to recoup the relevant fees.
A notice on NPS trail commission was issued by the PFRDA. The PFRDA said, “The trail commission will be payable to Points of Presence (POPs) starting from 01.09.2022 to support the significant efforts and resources deployed by them for sourcing NPS Accounts and ensure they are able to sustain their outreach efforts.”. On contributions made through D-Remit, the trail commission will be similar to that of eNPS (another mode of online contribution) for subscribers that have been onboarded by the POP. The charge structure for POPs were provided by PFRDA vide its circular dt. 31.01.2022.”
By creating a virtual ID and transmitting the money from their bank accounts, subscribers can deposit their voluntary contributions more easily with D-Remit (Direct Remittance) from PFRDA.’D-Remit’ enables subscribers to deposit contributions into PRANs through Net Banking/IMPS/UPI from their savings bank accounts as a ‘subscriber centric measure’. In order to optimize investment return, the feature offers same-day NAV if the Trustee Bank receives contributions before 9.30 AM. Due to its ease of use, convenience and unique functions like SI/auto debit, changing auto debit amounts, pause auto debit, etc., it has become very popular among consumers.
