NPS Rules Update: If you invest in NPS, this news is important for you. The Pension Fund Regulatory and Development Authority (PFRDA) is introducing the T+0 settlement system for NPS holders. This means that any NPS contribution received by the trustee bank by 11 AM on a settlement day will be invested on the same day. As a result, NPS investors will get the benefit of the same day’s net asset value (NAV).
Investments Were Previously Made on a T+1 Basis
According to the statement, earlier, the settlement of investments received by the Trustee Bank was done the next day (T+1). This meant that contributions received a day earlier were invested on the following day. PFRDA stated that contributions received until 9:30 AM on any settlement day were already considered for same-day investment. Now, with the new rule, contributions received until 11 AM will also be invested on the same day with the applicable NAV.
Customers Will Get More Benefits Than Before
PFRDA has advised the ‘Point of Presence’ (POP), Nodal Office, and NPS Trust for e-NPS to align their operations with the revised timeline. This update will ensure that customers get better benefits. Earlier, there was a delay of one day in investing the deposited amount since it was processed on the next business day (T+1).
To all the salaried employees
Do note the changes in the NPS.
Higher Contribution limit from 10 % to 14 % makes NPS even more attractive due to substantial tax advantage it offers. Please check with your H R / CA
Disclosure : I sit on the board of Kotak Pension Fund. pic.twitter.com/G8x9IIUfjA
— Nilesh Shah (@NileshShah68) July 24, 2024
NPS Investment Will Become Easier and Faster
With the new rule, the investment process for NPS has improved. Now, the remitted amount deposited by 11 AM will be invested on the same day, according to the applicable net asset value (NAV). PFRDA has made these changes to provide quicker benefits to investors. As a result, investing in NPS has become more efficient and seamless.
Growth in NPS and Atal Pension Yojana (APY)
The pension regulator added 9.47 lakh new subscribers from non-government sectors to NPS in 2023-24, increasing the total NPS investment by 30.5%, reaching ₹11.73 lakh crore annually. As of May 31, 2024, the total number of NPS subscribers is 18 crore. Additionally, as of June 20, 2024, enrolment under the Atal Pension Yojana (APY) crossed 6.62 crore, with over 1.2 crore enrollments recorded in 2023-24.