The Pension Fund Regulatory and Development Authority (PFRDA) has permitted trail commission payment through POPs for National Pension System or NPS accountholders in an effort to encourage the Points of Presence (POPs). The pension fund regulator made it clear that trail commission on NPS contributions made through D-Remit by subscribers who were on-boarded by the relevant PoPs will be equivalent to eNPS (another means of online contribution).
Issuing a notification in regard to new NPS rule on trail commission, the PFRDA said, “In order to support the Points of Presence (POPs) for their significant efforts and resources deployed by them for sourcing NPS Accounts and make them sustain their NPS outreach efforts, it has been decided that the trail commission shall be payable to POPs w.e.f. 01.09.2022. The trail commission on contributions made through D-Remit will be similar to eNPS (other mode of Online contribution) by those subscribers who were on-boarded by the respective PoPs. The charge structure for POPs were provided by PFRDA vide its circular dt. 31.01.2022.”
“The trail commission to PoPs for D-Remit Contributions of the associated Subscribers shall be @ 0.20% of the contribution amount (Minimum ₹15 and Maximum ₹10,000) similar to eNPS. The applicable charges would be recovered by unit deduction on periodical basis,” PFRDA added.
The D-Remit (Direct Remittance) feature was made available by PFRDA to subscribers so they could more easily deposit their voluntary contributions by creating a static virtual ID connected to their PRAN and remitting the money from their bank account.
D-Remit was designed as a “subscriber centred measure” that would let people use Net Banking, IMPS, or UPI to deposit money into PRANs from their savings bank accounts. If Trustee Bank receives the contributions before 9.30 AM, the feature will deliver same-day NAV in an effort to maximise investment return. Its simplicity of use, operating convenience, and special ability to set up SI/auto debit, change the auto debit amount, suspend auto debit, etc. have made it very well-liked.
