Rule Changes from 1st July 2024 New rules of NPS Settlement have come into effect from today. Under the new rule, now there will be same-day settlement. PFRDA has also issued a circular related to this. Let us tell you that the number of NPS users is more than 180 million. Let us know about the new rule in detail in this article.
NPS New Settlement Rule: Along with many financial rules, the rules of National Pension System have also changed in July. From today, the rules of NPS Settlement have changed. Now users will not have to wait for many days for claim settlement.
In June, PFRDA issued a circular. According to this circular, PFRDA has allowed same day settlement for National Pension Scheme (NPS) subscribers.
What is the new rule
According to the statement issued by the Pension Fund Regulatory and Development Authority (PFRDA), the NPS contribution received by the trustee bank till 11 am (T) on the settlement day will be invested on the same day and the user will get the Net Asset Value (NAV) benefit on the same day.
To understand this new rule in simple language, if the user has contributed till 11 am, then that amount will be invested on the same day and the user will get the benefit of that day as well. Till June 30, the settlement of the investment of the contribution to the trustee bank used to happen the next day. This process is called T+1, but from today T+0 has been implemented for settlement.
The purpose of this new rule is to streamline the investment process and increase efficiency in transactions.
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Number of NPS subscribers
According to official data, in the financial year 2023-24, PFRDA added 947,000 new users of NPS from the non-government sector. After the increase in the number of subscribers, the AUM of NPS increased by 30.5 per cent year-on-year to Rs 11.73 lakh crore.
As of May 31, 2024, the total number of NPS users was around 180 million.
About NPS
The Government of India established the Pension Fund Regulatory and Development Authority (PFRDA) on 10 October 2003 and launched the National Pension System on 1 January 2004. This is an investment scheme. Initially, only government employees used to get the benefit of this scheme. But, later all citizens started getting its benefits.
This scheme was started to continue the income after retirement. In this, the investor gets the benefit of pension after retirement.
