To support Points of Presence (POPs) in the National Pension System, the Pension Fund Regulatory and Development Authority (PFRDA) has changed the rules regarding trail commission. Trail commission is the amount you pay to your financial advisor for making an investment.
The pension fund regulator has clarified that the trail commission on contribution to NPS will be paid through direct remittance and will be similar to ENPS (contribution to commission through online mode). This will be done by the subscribers who have been connected by the POPs to the NPS system.
Giving information on Trail Commission, PFRDA said that in view of the significant efforts made for sourcing NPS accounts, this decision has been taken to support POPs. The rule for payment of trail commission to POPs has come into effect from 1st September.
The charge structure for payment of POPs was released by PFRDA on January 31. Only 0.20 per cent of the amount deposited in NPS will be charged as trail commission for de-remit contribution of subscribers associated with POPs. It can be a minimum of Rs 15 and a maximum of Rs 10,000. Applicable charges will be recovered by unit deduction.
PFRDA launched de-remit facility Recently PFRDA has started de-remit facility of NPS subscribers, through which all the subscribers can contribute to NPS as per their wish by creating a virtual ID. This Static Virtual ID is linked to PRAN.
De-remit is envisaged as a ‘customer centric measure’ to facilitate crediting of money from your savings account to PRAN through Net Banking/IMPS/UPI. If the trustee bank receives the contribution before 9.30 am, then due to this facility it will be reflected in the NAV on the same day. De-remit has become quite popular due to its ease of use, auto debit facility, change auto debit amount, stop auto debit etc.
