PFRDA Introduced Same-Day Investment for NPS Contributions
MAS Team | 25 July 2024
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The Pension Fund Regulatory and Development Authority (PFRDA) has announced a significant improvement in the National Pension System (NPS) contribution process. Starting July 1, 2024, NPS subscribers will benefit from same-day investment of their contributions, a move from the current next-day (T+1) investment system. This change is made possible by technological advancements and a robust system-level interface between the Trustee Bank (TB) and Central Recordkeeping Agencies (CRAs).
Under the new system, contributions received by the Trustee Bank until 11 AM on any settlement day will be invested on the same day (T+0). This extends the current deadline for D-Remit contributions, which was previously set at 9:30 AM for same-day investment. The new timeline applies to all types of contributions, including those made through Government Nodal Offices, Points of Presence (PoPs), eNPS, D-Remit, and UPI. Contributions received after 11 AM will be invested the next day (T+1).
This change will have a significant impact on various stakeholders. Subscribers will benefit from faster investment of their contributions, potentially leading to better returns. Points of Presence (PoPs) and Government Nodal Offices will need to align their information-sharing systems with CRAs and contribution remittance frameworks to TB according to the new timelines. The NPS Trust will be required to adjust eNPS systems to comply with the new investment schedule.
All stakeholders are advised to make necessary adjustments to their systems in a time-bound manner to ensure smooth implementation of the new policy. This circular, issued under Section 14 of the PFRDA Act, 2013, marks a significant step towards improving the efficiency of the National Pension System, ensuring that subscribers' contributions are invested more quickly and potentially yielding better returns. The PFRDA's move demonstrates its commitment to leveraging technological advancements for the benefit of NPS subscribers, streamlining the investment process, and potentially enhancing the overall returns for pension fund participants.
Dear Investor,
In case of any grievance / complaint :
In case of any grievance / complaint :
- Please contact Compliance Officer Shraddha Mhatre at [email protected] and Phone No. - 91-22-35131664.
- You may also approach CEO Debashis Basu at email- id [email protected] and Phone No. - 91-22-35131664.