The Pension Fund Regulatory and Development Authority (PFRDA) has recently allowed the NPS subscribers to deposit their contributions directly under the D-Remit process through the UPI QR code. This initiative aligns with modern trends, enhancing accessibility, efficiency, and will be appealing to tech-savvy, young subscribers.
The last few years, in fact, have seen a spurt in businesses using QR codes. All it takes to use a QR code is a camera on a smartphone (which is now a must-have in today’s world). Users do not need to remember complex account numbers or provide multiple pieces of information. The convenience of making payments using QR codes has contributed to their widespread adoption in various industries and regions. One big example of businesses using this are restaurants using QR code menus, which have become quite popular.
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“The introduction of QR code – UPI for D-Remit (Direct Remittance) would help in making NPS contributions more accessible, efficient, and flexible. This initiative by PFRDA will empower NPS subscribers to take control of their retirement savings and benefit from the advantages of systematic investment planning. Under this new mechanism, subscribers can utilise the UPI QR Code to transfer their contributions. For enabling the same, the subscriber must set up his virtual D-Remit account with the Trustee bank of the NPS architecture,” said Kurian Jose, CEO, Tata Pension Management.
According to Kurian, PFRDA’s decision to introduce QR codes to make contributions to NPS (National Pension System) using UPI-enabled apps is in keeping with the times and a step in the right direction. Making payments using QR codes offers several conveniences like simplicity, speed, and versatility of the process which will boost the overall experience of subscribers in NPS.
NPS is a defined contribution savings mechanism, and the retirement corpus would depend on time that the retirement amounts have been given, to benefit from the power of compounding and hence the need to begin as soon as one starts earning. “These days the young perceive financial / retirement planning as a fuddy duddy complex tool to be undertaken only when one is around 40-50 years. Alas, by then it may be too late for the same. And hence the requirement to speak the language of the young through use of technology,” said Kurian.
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Introduction of QR codes may draw in the younger subscribers who are extremely pro-technology and are always looking for technology-based conveniences like mobile payment apps, ride-sharing services, food delivery apps, social media platforms, streaming services, and smart home devices, among others.
