New NPS contribution rule: PFRDA reduces timeline of contributions made from July 1; three important things to know
National Pension System (NPS) subscribers have multiple modes for contribution deposit including through Points of Presence (PoPs), eNPS, D-Remit, UPI, UPI QR Code and their employers. The Pension Fund Regulatory and Development Authority (PFRDA) has reduced the timeline for NPS contributions received by Trustee Bank (TB) on any settlement day will now be considered for same-day investment (T+0). Earlier, the timeline was T+ 1. This new timeline for same-day investment will be effective from July 1, 2024, PFRDA stated via a circular issued on June 28, 2024.
Also read: 18 major NPS changes in last 6 months: New online withdrawal facility to changes in NPS transaction statement
Here are three things to know about the new changes.
New NPS contribution rules: How it works
Contributions are placed into the allocated account of the Trustee Bank (TB) after exchanging information with Central Recordkeeping Agencies (CRAs). The Trustee Bank invests contributions received up to the previous day (T) on the next settlement day (T+1).
What is the change
From July 1, 2024, TB and CRAs, contributions received by TB till 11 AM (T) on any settlement day will now be considered for same-day investment. Note that contributions received by TB after 11 AM will be invested on the next day (T+1).
According to the PFRDA circular dated June 26, 2024, “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
