According to a PFRDA press release issued on September 20, 2022, “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. The reduced timelines of final exit from NPS, which would benefit the Subscribers associated with the respective CRAs are: Subscribers associated with Protean eGov Technologies Ltd: 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 PFRDA stated.
Subscriber transactions with a TAT of T+2 Settlement days
**‘T’ depends on the cut-off time for Settlement which varies between 10.30 am to 11.00 am, however, may change depending upon other settlement factors.
Source: PFRDA press release
“As part of Azadi Ka Amrit Mahotsav and to commemorate 75 years of India’s Independence, the intermediaries of PFRDA viz Central Recordkeeping Agencies (CRAs), Pension Funds (PFs) and Custodian have improved the system interface and enhanced their IT capabilities to reduce the timelines of various transactions under NPS for providing better subscriber experience to fulfil their evolving needs,” stated the PFRDA press release.
Recent changes made to NPS
In a bid to ease the onboarding process for NPS investors, IRDAI has relaxed the requirement of submitting a separate proposal form for buying annuity products at maturity. From now on, the exit form of NPS will be treated as the proposal form for purchasing annuities from life insurance companies. The insurance regulator has also advised insurance companies to adopt Aadhaar-based authentication for verification of life certificates such as Jeevan Praman to ease the process for pensioners.