Reduction of Timelines for Withdrawal from T+4 to T+2 for the benefit of NPS Subscribers: PFRDA

Reduction of Timelines for Withdrawal from T+4 to T+2 for the benefit of NPS Subscribers: PFRDA Circular dated 19.09.2022

PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY

Circular No: PFRDA/2022/23/SUP-CRA/08

19th Sep 2022

CIRCULAR

To
All Stakeholders under NPS

Subject: Reduction of Timelines for Withdrawal from T+4 to T+2 for the benefit of Subscribers -reg

As part of Azadi Ka Amrit Mahotsav and to commemorate 75 years of India’s Independence, the intermediaries of PFRDA viz Central Record keeping Agencies (CRAs), Pension Funds (PFs) and Custodian have improved the system interface and enhanced their IT capabilities to reduce the timelines of various transactions under NPS for providing better subscriber experience to fulfil their evolving needs.

2. The withdrawal requests of Subscribers at the time of exit were hitherto executed on T+4 working/settlement days (T being the day of authorization of withdrawal request by Nodal office/PoP/Subscriber) and the timeline has been reduced to T+2.

3. The reduced timelines of final exit from NPS, which would benefit the Subscribers associated with the respective CRAs are provided below:

Subscribers associated with Protean eGov Technologies Ltd CRA : Requests authorized up to 10:30 AM will be settled on T+2 basis.

Subscribers associated with KFin Technologies Ltd & CAMS CRAs : Requests authorized up to 11 AM will be settled on T+2 basis.

4. The list of CRA-wise activities processed on T+2 basis is provided in the Annexure for ready reference. The timelines are to be considered for working and settlement days. The reduced timelines shall be introduced in a phased manner for other activities in the interest of Subscribers.

Yours sincerely,

Chief General Manager

Annexure

Subscriber transactions with a TAT of T+2 Settlement days

**‘T’ depends on the cut-off time for Settlement which varies between 10.30 am to 11.00 am, however, may change depending upon other settlement factors.

Definitions:

1. One-way switch: Under the functionality of one-way switch, the subscriber has an option to transfer funds from Tier II to Tier I account, however, the vice-versa is not allowed.
2. Rebalancing: In the case of subscribers who have opted ‘Auto choice’ investment option, the percentage of investment in the asset classes E/C/G will change as per the subscriber’s age as given in the ‘Life cycle Investment Matrix’. The change happens on the date of birth of the subscriber. In this process, the existing assets, to the extent of change, are redeemed and reinvested as per the new allocation ratio.
3. Partial withdrawal: Subscriber, who has been in NPS for at least 3 years, can withdraw maximum of 25% of the contributions made by the Subscriber (excluding returns thereof and employer contribution, if any). Partial withdrawal can be availed maximum of three times with the condition that the subscriber will receive maximum of 25% of own contributions made between two partial withdrawals.

Source: PFRDA