The time lag for National Pension System subscribers in meeting request for partial withdrawals was cut down with the pension regulator PFRDA bringing this under the T+2 timeline, from the earlier T+4 earlier, reported Business Line.
In other words, the pension regulator has cut down the timeline for processing partial withdrawal requests to T+2 across all Central Record Keeping Agencies (CRAs).
“We have added more services in the bouquet under T+2 timelines. This is a big reform for the benefit of NPS subscribers as they need not now wait for four days or even the fifth day to get the funds from partial withdrawal into their bank account,” sources in PFRDA said.
It is worth mentioning here that PFRDA, in September 2022, cut down the timeline for processing withdrawal requests of subscribers at the time of exit from T+4 to T+2 days. With this latest move, PFRDA has reduced the turnaround time for all kind of withdrawals.
The intermediaries of PFRDA — the CRAs, pension fund and custodians — 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.
PFRDA has also now said that reduced timelines will be introduced in a phased manner for many more activities in the interest of subscribers.
Also, India’s pension assets (NPS and APY) continue to show fast growth and the assets under management hit nearly ₹8.75lakh crore till Feb 11 this year.