NPS Same-Day Investment News: The Pension Fund Regulatory and Development Authority (PFRDA) has reduced the timeline for National Pension System (NPS) contributions received by Trustee Bank (TB). Your contribution will be eligible for same-day investment if done before 11 am on any settlement day.
According to a circular issued by PFRDA on Friday (June 28, 2024), any contributions received on a settlement day will now be considered for same-day investment (T+0). Previously, the timeline was T+1. This new timeline for same-day investment is effective from 1st July, 2024.
NPS subscribers have multiple modes for making contribution deposits including through Points of Presence (PoPs), eNPS, D-Remit, UPI, UPI QR Code, and their employers.
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The NPS is open to employees from the public, private, and even the unorganized sectors.
What’s New
Contributions are placed into the Trustee Bank’s designated account after sharing information with Central Recordkeeping Agencies (CRAs). The Trustee Bank then invests these contributions on the following settlement day (T+1), including those received up to the previous day (T).
Starting from July 1, 2024, contributions received by the Trustee Bank (TB) until 11 AM on any settlement day (T) will be invested on that same day. Contributions received after 11 AM will be invested on the following day (T+1).
“With advancements in technology and a robust system-level interface between TB and CRAs, contributions received by TB till 11 AM (T) on any settlement day will now be considered for same-day investment. This new timeline for same-day investment will be effective from 1st July 2024. Contributions received by TB after 11 AM will be invested on the next day (T+1),” said PFRDA in a circular.
Where Does this New Rule Apply?
Under the new rule, contributions through D-Remit will be invested on the same day if received by 11 AM (previously 9:30 AM). This applies to all contributions received by the Trustee Bank from Government Nodal Offices, Points of Presence (PoPs), eNPS, D-Remit, UPI, and other channels.
Also Read: NPS Balance Life Cycle Fund Launch Soon; It Will Allow 50% Equity Investment Till Age 45
PFRDA has also instructed Points of Presence (PoPs), Government Nodal Offices, and NPS Trust for eNPS to adjust their operations according to updated timelines, aiming to ensure timely benefits for subscribers.
PFRDA is focused on speeding up access to funds and potentially increasing returns for subscribers, improving their retirement planning and financial security.
In the last six months, PFRDA has implemented significant system upgrades, including a new online withdrawal option and updates to the NPS transaction statement.
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