Now, contribution can also be made through IMPS in NPS account. For this, NPS subscribers have been given intermediate payment system (IMPS) facility.
The pension scheme is good news for subscribers investing in the National Pension System. Now, contribution can also be made through IMPS in NPS account. For this, NPS subscribers have been given intermediate payment system (IMPS) facility. This enables them to instant money transfer from their bank account to NPS. This facility has come into effect from 1 March 2021. This will help NPS subscribers to avail same day investment.
Last year, the Pension Fund Regulatory and Development Authority (PFRDA) introduced Direct Remittance (D-Remit), a new mode of payment for NPS subscribers. Under this, subscribers could contribute to the NPS account through NEFT and RTGS.
NPS is a low cost product. There is a tax exemption under the Income Tax Act 80C & 80CCD (1B). Explain that the National Pension System was started in January 2004 for government employees. It was opened to all categories of people in 2009.
Instant money will be deposited in the account
The Pension Fund Regulatory and Development Authority said in a circular issued on March 10, 2021, that NPS subscribers can use IMPS, an instant fund transfer facility provided by the National Payment Corporation of India (NPCI). They can contribute to the fund through this. Money will be deposited in the NPS account immediately through IMPS. IMPS provides real-time fund transfer service on many channels such as mobile, internet, ATM and SMS.
In case of NEFT and RTGS, the money is returned to the subscriber’s account on the day of the transaction only when the contribution is refunded under the de-remit facility. At the same time, if the money is returned after contributing to the NPS through IMPS, then it will be returned to the subscriber’s account after T + 1 i.e. one day from the day of the transaction.
