New NPS Contribution Rule: To understand the new rule in simple language, if a subscriber has made his contribution by 11 am on any settlement day, then it will be invested on the same day and the benefit of the Net Asset Value (NAV) of the same day will be available.
New NPS Contribution Rule: There is a good news for those investing in the National Pension System (NPS). The Pension Fund Regulatory and Development Authority (PFRDA) has announced the facility of same day settlement for the customers of the National Pension System (NPS). The advantage of this will be that if the subscriber makes his contribution by 11 am on any settlement day, then it will be invested on the same day and the benefit of the net asset value (NAV) of the same day will be available. This new rule will come into effect from today i.e. July 1.
Till now the contributions received by the trustee bank were invested on (T+1). (T+1) means that the contribution received today was invested the next day. But now PFRDA has implemented T+0 settlement under NPS from July 1.
Know what is the new rule
If we understand the new rule in simple language, if a subscriber has made his contribution by 11 am on any settlement day, then it will be invested on the same day and the benefit of the net asset value (NAV) of the same day will be available. But the contribution after 11 am will be settled the next day.
Earlier the contribution was invested on the next settlement day (T+1). Which means that the contribution received today was invested the next day. Apart from this, the D-remit contribution received till 9:30 am was already invested on the same day.
These people can invest in NPS
National Pension System (NPS) is a voluntary pension scheme for the citizens of the country. By opening an NPS pension account, you can arrange a good amount for your retirement by investing some amount every month from your income. People between 18 years to 60 years can invest in this pension scheme.
