Priyanka Tiwari
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If you invest in the National Pension System (NPS), there's good news for you! The Pension Fund Regulatory and Development Authority (PFRDA) is introducing the T+0 settlement system, which means faster investments and quicker benefits.
What’s Changing?
Previously, contributions made to NPS were settled on a T+1 basis—meaning, if your money was received by the trustee bank on a given day, it was invested the next business day. But under the new system, if your contribution reaches the trustee bank by 11 AM on a settlement day (T), it will be invested the same day. This allows investors to benefit from the same-day Net Asset Value (NAV), optimizing returns.
How Will This Benefit You?
- Your investments will start working for you faster.
- You'll get the same-day NAV, potentially leading to better returns.
- The process will become more efficient and seamless.
Previously, contributions received before 9:30 AM were already invested on the same day. Now, with the extended deadline of 11 AM, more investors can take advantage of immediate investments.
Who Needs to Adapt?
To ensure smooth implementation, PFRDA has asked Points of Presence (POP), Nodal Offices, and the NPS Trust to align their processes with the new T+0 timeline. This will ensure that investors receive the full benefits without unnecessary delays.
NPS Growth on the Rise
The NPS has been witnessing significant growth. In the 2023-24 financial year, PFRDA added 9.47 lakh new subscribers from the non-government sector, leading to a 30.5% increase in total NPS investments, which now stand at ₹11.73 lakh crore.
Additionally, under the Atal Pension Yojana (APY), the total number of enrollments surpassed 6.62 crore, with over 1.2 crore new enrollments in 2023-24 alone. As of May 31, 2024, the total number of NPS subscribers has reached a staggering 18 crore.
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