Good News for NPS Investors – Now you will get the benefit of NAV on the same day
Good News for NPS Investors – If you invest in the National Pension System (NPS), then a great update has come for you. The Pension Fund Regulatory and Development Authority (PFRDA) has decided to implement the T+0 settlement system for NPS investors.
This means that now the investment made by you till 11 am will be processed according to the net asset value (NAV) of the same day.
Till now, the settlement of investments was done the next day under the T+1 system, but with the new rule, NPS investments will become faster and more beneficial than before. Let us know about this change in detail.
Now you will get the NAV of the same day along with the investment
What used to happen earlier?
Investments made in NPS were processed the next day (T+1).
That is, if you invested this morning, its NAV used to be applicable the next day.
What has changed now?
With the implementation of T+0 system, your investment will now be processed on the same day.
Investment made till 11 am will be applicable on the basis of NAV of the same day.
This will give you the benefit of better returns and fast processing.
Why is the new rule beneficial for investors?
Faster investment processing: Investments will now be processed immediately as compared to earlier.
Possibility of better returns: The NAV of the same day on which the investment was made will be available, which will reduce the impact of market fluctuations.
NPS investment easier than before: Investments made through D-Remit till 11 am will get the benefit of NAV of the same day.
More transparency in the short term: Investors will no longer have to wait, they will be able to get updates on their investments immediately.
What is the difference between the earlier and the present rule?
Change Old rule (T+1 settlement) – New rule (T+0 settlement)
Investment process Funds received by the trustee bank till 9:30 am were considered for investment on the same day. Now the funds received till 11 am will be invested on the same day.
NAV application time – The next day’s NAV was applicable. The NAV of the same day will be applicable.
Processing speed – There was a delay of 1 day. It will be processed immediately.
How much did NPS investment increase from before?
According to PFRDA, 9.47 lakh new subscribers from the non-government sector joined NPS in 2023-24. During this period, the amount of investment in NPS increased by 30.5%, taking the figure to Rs 11.73 lakh crore.
Total base of NPS subscribers as on 31 May 2024 ➝ 18 crore
Total enrollment in Atal Pension Yojana (APY) as on 20 June 2024 ➝ 6.62 crore
How to invest in NPS? (Step-by-step guide)
If you want to invest in NPS, follow the steps given below:
- Visit the official website of NPS to invest online.
- Click on ‘NPS Account Opening’ and enter your name, mobile number and email ID.
- Upload Aadhaar card, PAN card or bank details for KYC verification.
- Choose your preferred pension fund manager (approved by PFRDA).
- Deposit at least ₹500 (Tier-1) or ₹250 (Tier-2) in NPS Tier-1 and Tier-2 account.
- After submitting the form, PRAN (Permanent Retirement Account Number) will be generated.
Is this change beneficial for investors?
This change is a big improvement for NPS investors as now the investment made by them till 11 am will be processed immediately.
This will reduce the impact of market fluctuations and give investors more transparency and control.
These changes made by PFRDA will prove beneficial for long term investors.
If you are thinking of investing in NPS for retirement planning, then this could be the best time!
Thanks for visiting Physics Wala
Author
