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SIP in NPS: How to set up SIP for same-day NAV for your investment

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The National Pension System (NPS) is a long-term investment option for meeting income needs during retirement. The feature of obtaining same-day NAV has been introduced in NPS in order to make NPS a one-stop-shop for all of your investment needs. Individuals can start a Systematic Investment Plan or SIP in NPS using the D-Remit feature. Giving the bank standing instructions will allow you to set up an auto-debit from your account every month, quarter or year.

D-Remit Facility in NPS

D-Remit is an electronic method that allows money to be transmitted directly from your bank account to the Trustee Bank, allowing you to receive same-day NAV 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’s Virtual Account can only be used to send NPS contributions. The minimum SIP amount should be Rs 500.

Pre-requisites for initiating D-remit are:

  • Active NPS PRAN
  • Mobile No Updated in NPS
  • Internet Banking Facility with any bank

How to set up SIP in NPS for your investment

Step 1: Visit eNPS website https://enps.nsdl.com/eNPS/NationalPensionSystem.html

Step 2: Click on ‘National Pension System

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

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

Step 5: Click on ‘verify PRAN’. Upon verification of PRAN, OTP will be sent to your registered mobile no.

Step 6: Select account- Tier I or II for which Virtual Account is to be created and click on ‘Generate Virtual Account’

Step 7: Once you are done with this, you will get an Acknowledgement

Step 8: You can view the Virtual Account Registration details by clicking “Ok”.

Step 9: The NPS Trust will have to confirm the Virtual Account. By the next working day, the same will be registered.

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

Note that the identifier for Tier I and Tier II accounts is the sixth digit of your Virtual Account, which is either ‘1’ or ‘2.’ It is necessary to generate different Virtual Account Numbers for both Tier I and Tier II NPS accounts.

How to add this Virtual Account as a beneficiary?

Subscriber has to login to Net Banking facility of his bank and add the Virtual Account as Beneficiary Account along with his/her name as Beneficiary Name. For fund transfers, the subscriber must provide ‘UTIB0CCH274’ as the IFS Code of Axis Bank (Trustee Bank) and the account type as ‘Current Account’, if necessary.

After entering beneficiary information, the person can invest in NPS with a minimum of Rs 500 as per convenience and benefit from the same-day NAV. The subscriber can also set up standing instructions for his or her NPS account.

Points to note

  • The cut-off time for fund receipt for same-day NAV is 9.30 a.m. If funds are received after 9:30 a.m. (or on a non-working day such as Saturday, Sunday, or a public holiday), the NAV of the next working day will apply. Please keep in mind that the deadlines specified are subject to change due to regulatory changes.
  • Please keep in mind that the minimum contribution amount through the D-Remit option is Rs. 500 for both Tiers.
  • To use the D-Remit to Trustee Bank facility, please use RTGS/NEFT/IMPS as the mechanism of remittance.

Why should you set an SIP

SIP allows you to invest in a disciplined and phased manner, assisting you in building a retirement corpus. When opposed to a one-time investment, compound interest ensures superior long-term advantages. Also, there’s no need to try to time the market.

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