New Delhi: The PoP players in the NPS scheme are set to get a commission of Rs 15-10,000 from next month if subscribers route their voluntary contributions through the Direct Remit (D-Remit) facility under the all citizen model.
The move aims to compensate the Point of Presence (PoPs) players who were losing fees.
PoPs are banks, non-banking financial companies and other players which register and service subscribers under the National Pension System (NPS). They are the first point of interaction between the subscriber and NPS.
The Pension Fund Regulatory and Development Authority (PFRDA) said the move will support the PoPs as they have put in significant efforts and deployed their resources for sourcing the NPS accounts.
For them to sustain their NPS outreach efforts, it has been decided that the trail commission shall be payable to PoPs, with effect from September 1, 2022, according to a PFRDA circular.
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“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 trail commission to PoPs for D-Remit contributions of the associated subscribers will be 0.20 per cent of the contribution amount, with minimum Rs 15 and maximum Rs 10,000,” PFRDA said.
The authority said the applicable charges under trail commission will be recovered by unit deduction on a periodical basis.
The commission to PoPs in D-Remit is similar to the contribution made through eNPS.
The D-Remit facility was introduced as a subscriber-centric measure. It optimises investment return for subscribers by offering same-day net asset value (NAV) if the trustee bank receives the contributions before 9.30 am.
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Otherwise, it takes about two-three days for a contribution to be invested in the market as the money flows through a chain involving the PoPs, trustee bank and ultimately the fund manager.
The minimum amount that can be contributed through D-Remit is Rs 500.
Among others, the NPS subscribers can make their voluntary contributions through their associated nodal offices, PoPs, e-NPS or through NPS mobile applications.
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NPS subscribers are categorised as central and state government employees, corporate sector, Atal Pension Yojana, and all citizen model– which is a voluntary sector.
