If you invest in NPS (National Pension System), this news is crucial for you. The Pension Fund Regulatory and Development Authority (PFRDA) is set to introduce the T+0 settlement system, benefiting NPS holders.
Understanding T+0 Settlement System
Previously, NPS contributions were settled on a T+1 basis, meaning contributions received by the trustee bank up to a day earlier were invested the next day.
Now, under the new system, contributions received by 11 am on any settlement day will be invested on the same day, ensuring investors benefit from the day’s Net Asset Value (NAV).
Enhanced Benefits for NPS Investors
PFRDA has directed ‘Point of Presence’ (POP), Nodal Office, and NPS Trust for e-NPS to align their operations with the revised timeline.
This adjustment ensures customers receive enhanced benefits by eliminating the previous one-day delay in investment.
Facilitating Faster and Easier NPS Investments
With these changes, investing in NPS has become quicker and more efficient for investors. Contributions received until 11 am will now be invested on the same day based on the applicable NAV, streamlining the investment process.
Recent Growth in NPS Subscribers
In the fiscal year 2023-24, PFRDA added 9.47 lakh new subscribers from non-government sectors, boosting NPS investments by 30.5% to Rs 11.73 lakh crore annually. As of May 31, 2024, the total number of NPS subscribers reached 18 crore.
Additionally, the Atal Pension Yojana (APY) surpassed 6.62 crore enrollments by June 20, 2024, with over 1.2 crore new enrollments in 2023-24.
This revision maintains all essential information while making it easier to understand and navigate through the key points with headings.
