The waiting time for National Pension System (NPS) subscribers in fulfilling their ‘partial withdrawal’ requests just got reduced with the pension regulator PFRDA bringing this activity under the T+2 timeline, from the earlier T+4 settlement.
Put simply, the pension regulator has reduced 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 maybe recalled that PFRDA had in September 2022 reduced the timeline for processing withdrawal requests of subscribers at the time of exit from T+4 working/settlement days (T being the day of authorisation of withdrawal request by Nodal officer/PoP/subscriber) to T+2 days.
With the latest move on partial-withdrawal, PFRDA has now crunched the turnaround time for all kind of withdrawals.
As part of Azadi Ka Amrit Mahotsav and to commemorate 75 years of India’s independence, the intermediaries of PFRDA viz Central Record Keeping Agencies (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 in the future for many more activities in the interest of Subscribers.
Meanwhile, India’s pension assets (NPS and APY) continue to show frenetic growth and the assets under management touched about ₹8.75-lakh crore till February 11 this year. The AUM has been growing at 28-30 per cent despite headwinds such as rising inflation and increase in interest rates in the country.