Pension Fund Alert! PFRDA reduces timelines for withdrawal of various NPS transactions – DETAILS

With an aim to provide a better subscriber experience, the intermediaries of the Pension Fund Regulatory and Development Authority (PFRDA) have improved the system interface and enhanced their IT capabilities to reduce the timelines of various transactions under NPS. 

PFRDA has issued a circular regarding the same while highlighting the intermediaries –  Central Recordkeeping Agencies (CRAs), Pension Funds (PFs) and Custodians. With changes in the timeline, the authority also aims to fulfill subscribers’ evolving needs. 

According to the regulator PFRDA, “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." 

It should be noted that ‘T’ depends on the cut-off time for settlement which varies between 10.30 am to 11 am.

The reduced timelines of final exit from NPS 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. 

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, the authority further stated in its circular.