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.
There is a good news for those who invest 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 July 1, i.e. today.
Till now, the contributions received by the trustee bank were invested on (T+1). (T+1) means that the contributions received today were invested the next day. But now PFRDA has implemented T+0 settlement under NPS from July 1.
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Know what is the new rule
To understand the new rule in simple terms, if a subscriber has made his contribution by 11 am on any settlement day, then it will be invested on the same day and he will get the benefit of the net asset value (NAV) of the same day. But the contribution after 11 am will be settled on the next day.
Earlier, the contributions were invested on the next settlement day (T+1). Which means the contributions received today were invested the next day. Also, the de-remitted contributions received till 9:30 am were 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 and 60 years can invest in this pension scheme.
