Under the National Pension Scheme, PFRDA has made a big change to provide quick funds to the subscriber. Under the new rule, the fund will now be released within two days of the acceptance of the withdrawal application. Earlier it used to take four days for funds to come.
New Delhi. There is big news for the National Pension Scheme (NPS) account holders. Now the money will reach your account within two days of applying for withdrawal. The Pension Fund Regulatory and Development Authority (PFRDA) has made major changes in the rules for the convenience of the account holders.
PFRDA has now reduced the withdrawal time by half. According to the new rules, the withdrawal time of the NPS account holder has been reduced from T+4 to T+2. Here T means the withdrawal application has been given and 2 is the day or duration. This means that now the account holder will get the amount within 2 days of the withdrawal application. Earlier it used to take 4 days after the acceptance of the application. By reducing the settlement time for withdrawal of funds, investors will get the money quickly.
IT system made strong
All our intermediaries such as Central Recordkeeping Agencies (CRAs), Pension Funds (PFs) and Custodians have strengthened their system interfaces, PFRDA said in a statement. Along with this, IT capabilities have also been improved, so that the transaction time can be reduced. With this, money can be paid to the subscriber as soon as he needs it. Earlier this work used to take four days, now money will come in just two days.
Which subscriber will get the benefit
The benefit of reducing the settlement time of NPS will be available only to those subscribers who are associated with Proten e-Gov Technologies Limited CRA and Keffin Technologies Limited and CAMS CRA. If the subscribers of Proten e-Gov Technologies apply for withdrawal by 10.30 am, their settlement will be done in two days. Similarly, if the subscribers of Keffin Technologies Limited and CAMS submit their application by 11 am, they will also get the money within two days.
Application of these services possible
Caffeine linked services like subscriber superannuation, pre-mature exit, exit on death, annuity withdrawal, tier 2 withdrawal, partial withdrawal, scheme change, re-balancing, PFM change request, one-way switch, inter-sector change and ERM can apply for. At the same time, CAMS subscribers can apply for services like superannuation, pre-mature exit, exit on death, annuity withdrawal and Tier 2 withdrawal.
Apart from this, the subscriber also gets the option of one-way switching. Under this, account holders can transfer their money from Tier 2 account to Tier 1 account. However, they will not get the facility to transfer funds from Tier 1 account to Tier 2 account. Apart from this, the subscriber can shift his investment from equity to debt or government securities under the re-balancing option.
How much partial withdrawal exemption
PFRDA has said that the subscribers who have been associated with the NPS account for 3 years or more, they will be allowed to withdraw 25 percent of their contribution. This will not include the employer’s contribution and the amount of returns received during that period. This facility will be given only thrice in the entire period and there will also have to be a fixed time between one withdrawal to another.
