Listen to this article
Pensions funds regulator PFRDA has introduced trail commissions in NPS investments through d-remit facility. With this, Points of Presence (PoPs), distributors in MF parlance, will receive trail commission at the end of year for bringing in fresh inflows in NPS accounts.
In a circular, 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 commissions will be 0.2% of the contribution amount or up to Rs.10,000 whichever is lower. This payment to PoPs will be recovered through unit deductions from NPS accounts on periodical basis.
D-remit is direct remittance facility through which investors can invest in NPS simply by transferring funds from their bank account to NPS account. However, this facility surpasses distributors who used to get transaction fees on NPS investment of subscribers. The introduction of trail commission will help them recover cost of acquisition and encourage to bring in new subscribers.
