NPS funds withdrawal time halved: Here's all you need to know
The PFRDA has stated that 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'
To offer subscribers a better experience, the processing time for withdrawal of funds under the National Pension System (NPS) has been halved by the Pension Fund Regulatory and Development Authority (PFRDA).According to a notice on the official website of the organisation, the withdrawal time has been reduced to T+2 working/settlement days from T+4, where T represents the day of authorisation of withdrawal request by the Nodal office/Subscriber/ PoP. This means faster execution of transactions under the NPS.Subscribers associated with Protean eGov Technologies Ltd CRA whose requests are authorised up to 10:30 am will see them being settled on a T+2 basis. Furthermore, for all subscribers associated with KFin Technologies Ltd & CAMS CRAs will see all requests authorised up to 11 am being settled on T+2 basis.Subscribers associated with KFin can seek authorisation for services like annuity withdrawal, superannuation, ERM, one way switch, PFM change request, scheme preference change, partial withdrawal and more. Under partial withdrawal, a subscriber who has been in the NPS for at least three years can withdraw a maximum 25 percent of the contributions made by him/her. The withdrawal can be done three times, if the subscriber receives a maximum of 25 percent of own contributions made between two partial withdrawals, as per the notice. The contribution must exclude returns thereof and employer contribution, if any.Using a one-way switch, subscribers can transfer funds from Tier II to Tier I accounts. However, the opposite is not allowed.CAMS subscribers can request for activities like annuity withdrawal, premature exit, exit due to death, superannuation and Tier II withdrawal. View the PFRDA's circular here.Those associated with Protean eGov Technologies Ltd. can seek authorisation for activities like family/disability pension, premature exit, exit due to death, re-balancing, superannuation and annuity withdrawal.The PFRDA has stated that 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.”Read all the Latest News, Trending News, Cricket News, Bollywood News,India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.
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