The Pension Fund Regulatory and Development Authority (PFRDA) has announced a significant change regarding the investment of National Pension System (NPS) contributions. Effective from 1st July 2024, contributions received by the Trustee Bank (TB) until 11 AM on any settlement day (T) will be invested on the same day (T+0), instead of the current practice of the next settlement day (T+1). This change leverages technological advancements and a robust interface between TB and Central Recordkeeping Agencies (CRAs) to facilitate quicker investment of contributions.
The new timeline applies to contributions received through various channels including Points of Presence (PoPs), eNPS, D-Remit, UPI, and others. Contributions received after 11 AM will continue to be invested on the next day (T+1). Government Nodal Offices, PoPs, and NPS Trust for eNPS are instructed to align their systems with CRAs and TB to ensure seamless implementation of the revised timelines.
This circular, issued under Section 14 of the PFRDA Act, 2013, aims to enhance efficiency in NPS operations and ensure timely investment of contributions for the benefit of NPS subscribers.
Pension Fund Regulatory and Development Authority
Circular No. PFRDA/2024/13/SUP–CRA/07 Date: 26 June 2024
To,
i. Trustee Bank (‘TB’)
ii. Central Recordkeeping Agency (‘CRA’)
iii. National Pension System Trust (‘NPS Trust’)
iv. Government Nodal Offices (i.e. CG, SGs, CABs & SABs)
v. Point of Presence (‘PoP’)
vi. All other NPS Stake Holders
Madam / Sir,
Same Day Investment of NPS contributions (T+0) received by Trustee Bank effective from 1st July 2024
1. National Pension System (NPS) subscribers have multiple modes for contribution deposit including through Points of Presence (PoPs), eNPS, D-Remit, UPI, UPI QR Code and their employers. These contributions are deposited into the designated account of the Trustee Bank (TB) following the sharing of contribution information with the Central Recordkeeping Agencies (CRAs). Currently, contributions received by the Trustee Bank are invested on the next settlement day (T+1), meaning contributions received until the previous day (T) are invested the following day (T+1).
2. With advancements in technology and a robust system-level interface between TB and CRAs, contributions received by TB till 11 AM (T) on any settlement day will now be considered for same-day investment. This new timeline for same-day investment will be effective from 1st July 2024. Contributions received by TB after 11 AM will be invested on the next day (T+1).
3. The extended timeline for accepting contributions will apply to all types of contributions received by TB from/through Government Nodal Offices, PoPs, eNPS, D-Remit, UPI, etc. D-Remit contributions received by 9:30 AM on any settlement day which are already considered for same-day investment, will also be extended according to the revised timelines of 11 am.
4. PoPs, Government Nodal Offices and NPS Trust for eNPS are advised to align their information-sharing systems with CRA and the contribution remittance framework to TB according to the revised timelines in a time-bound manner. This alignment ensures that the benefits of same-day investments are passed on to the subscribers as applicable.
5. The circular is issued under Section 14 of the PFRDA Act, 2013 and is made available on the PFRDA website (pfrda.org.in) in the Circular section under the regulatory framework.
Yours faithfully,
Digitally singed by
K MOHAN GANDHI
Chief General Manager
