If you have investments in NPS, this information is relevant to you as well. Indeed, the Pension Fund Regulatory and Development Authority (PFRDA) will be introducing the T+0 settlement system for NPS participants. This means that any NPS contributions received by the trustee bank until 11 am on a settlement day will be invested on that same day.
This will provide NPS investors with the advantage of receiving the Net Asset Value (NAV) on the same day. As per the statement, the investment received by the trustee bank has been allocated for the T+1 investment. This indicates that the donations received up to the day before are put into investments the following day.
The PFRDA stated that contributions received by 9:30 am on a settlement day were already being invested on the same day. The amount received by 11 am will be invested on the same day with the relevant NAV. The PFRDA has recommended that the POP, Nodal Offices, and NPS Trusts for e-NPS synchronize their NPS activities with the updated schedules. This will positively impact the customers. Previously, there was a one-day delay in the investment of the deposited funds. Due to the fact that they were processed on the following business day (T+1). Now, under the updated regulations, this system has improved for investors compared to its previous state. Money deposited before 11 am will now also be invested on the same day based on the Net Asset Value (NAV) for that day.
The PFRDA has introduced modifications in NPS to accelerate the receipt of benefits. Following these modifications, the process of investing in NPS will become simpler and quicker.