What is the change?
The new policy will ensure that contributions received by the Trustee Bank (TB) until 11AM on any settlement day will be invested on the same day, allowing subscribers to benefit from the applicable Net Asset Value (NAV). However, contributions received by TB after 11 AM will be invested on the next day (T+1).
Previously, contributions received by the TB were invested on the next settlement day (T+1).
This change in timeline will provide subscribers with faster access to their investments and potentially higher returns.
Where does the new rule apply?
D-Remit contributions, which were already considered for same-day investment if received by 9:30 AM, will now also be invested on the same day if received by 11 AM. This extended timeline applies to all types of contributions received by the TB from or through Government Nodal Offices, Points of Presence (PoPs), eNPS, D-Remit, UPI, and other channels.
Points of Presence (PoPs), Nodal Offices, and NPS Trust for eNPS are advised by PFRDA to align their NPS operations as per revised timelines to benefit the subscribers in a time-bound manner, PFRDA said in a statement.
PFRDA aims to provide subscribers with faster access to their funds and potentially higher returns, ultimately improving their retirement planning and financial security. Over the past six months, the regulatory body has introduced several major changes to the system, including a new online withdrawal facility and updates to the NPS transaction statement.
What is NPS?
The National Pension Scheme (NPS) is a social security initiative by the Central Government. This pension programme is open to employees from the public, private and even the unorganised sectors.
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