NPS Rules: The Pension Fund Regulatory and Development Authority (PFRDA) is going to implement the T+0 settlement system for NPS holders. This simply means that now the NPS contribution received by the trustee bank by 11 am (T) on any settlement day will be invested on the same day. This will give NPS investors the benefit of the net asset value (NAV) of the same day.
Till now, investments were made on T+1 basis
PFRDA said that the contributions received till 9:30 am on any settlement day were already considered for investment on the same day. Now, the contribution amount received till 11 am will also be invested on the same day with the applicable NAV. According to the statement, till now the settlement of investments received by the Trustee Bank is invested on the next day (T+1). This means that the contributions received up to a day before are invested the next day.
Customers will be able to get more benefits than before
PFRDA has advised the ‘Point of Presence’ (POP), Nodal Office and NPS Trust for e-NPS to make their NPS operations in line with the revised timeline. This will enable customers to get the benefits in the right way. Earlier, there was a difference of one day in investing the deposited money. Because they were invested on the next business day (T+1).
Investing in NPS will become easier and faster than before
According to the new rule, this system has become better than before for investors. Now the de-remitted money deposited by 11 am will also be invested on the same day and that too according to the applicable net asset value (NAV) of that day. The pension regulator added 9.47 lakh new subscribers from non-government sectors to NPS in the year 2023-24, which increased the investment amount of NPS by 30.5%. It became Rs 11.73 lakh crore on an annual basis. As of May 31, 2024, the total base of NPS subscribers is 18 crores.
As of June 20, 2024, the total enrolment under Atal Pension Yojana (APY) has crossed 6.62 crores, out of which more than 1.2 crore enrollments were made in 2023-24. The Pension Fund Regulatory and Development Authority (PFRDA) has made some changes to get quick benefits in NPS. After these changes, the work of investing in NPS will become easier and faster.
