The Pension Fund Regulatory and Development Authority will be executing T+0 settlement for National Pension System (NPS) subscribers from July 1. Under the new rule, NPS contributions received by the Trustee Bank until 11 am (T) on any settlement day will be invested on the same day and the subscribers will get the benefit of same-day NAV (Net Asset Value).
As per the new system, trades in shares are settled on the same day they occur, implying that shares will be promptly transferred to the buyer's account, while funds will swiftly be deposited into the seller's account.
D-Remit contributions received by 9:30 am on any settlement day were already considered for same-day investment. Now, D-Remit contributions received till 11 am will also be invested on the same day with the applicable NAV, it said.
Earlier, contributions were invested on the next settlement day (T+1), meaning there was a delay of one day before investments were made. Furthermore, D-Remit contributions received by 9:30 am were already considered for same-day investment. Currently, contributions received via D-Remit until 11 am will also be invested on the same day, utilising the applicable Net Asset Value (NAV).
PFRDA has advised Points of Presence (PoPs), Nodal Offices, and NPS Trust for eNPS to adjust their operations accordingly to ensure timely benefits for subscribers.
This change aims to streamline the investment process and enhance the efficiency of NPS transactions.
PFRDA added 947,000 new subscribers from the non-government sectors to the NPS in 2023-24, boosting the NPS' assets under management (AUM) by 30.5% year-on-year to Rs 11.73 lakh crore. The total NPS subscriber base stands at 180 million as of 31 May 2024.
The total gross enrolments under the Atal Pension Yojana (APY) crossed 66.2 million as of June 20, 2024, of which more than 12.2 million were added in 2023-24.