NPS scheme change: How to do and timelines

Aug 17, 2021
NPS scheme change: How to do and timelines

NPS subscribers have the choice of swap items present in a selected scheme to every other scheme and likewise, change their pension fund managers. The scheme desire change request might be carried out online or by way of level of presence. The choice may be exercised in two instances in a monetary 12 months. In the case of offline mode, bodily software kind may be downloaded from respective Central Report Holding Company websites whereas a small transaction cost might be relevant. NPS traders can put money into a mixture of fairness, company bonds, and authorities securities with the utmost allocation to fairness capped at 75%. 

NPS scheme swap: 8 issues to know

1) Scheme desire change for NPS is processed in T+4 day for any scheme change requests (T is the date of authorization).

2) If scheme desire change is executed after the tip of earlier enterprise day and earlier than the start of subsequent enterprise day then the T day is taken into account for redemption and the request might be settled in T+3 working days

2) For redemption (withdrawal of items) will occur on T+1. 

3) Newest accessible NAV might be thought of for items redemption. 

4) On T+4, items as per the revised ‘scheme desire’ might be credited within the subscriber’s account. 

5) For instance, if the scheme desire change request is permitted on April 25, (referred to as T, the request might be executed on the following settlement day (April 26) (T +1).

6. Newest accessible NAV (i.e., NAV of April 26 might be thought of for withdrawal of items from the subscriber’s PRAN.

7. The items might be redeemed by the PFMs on April 26, 2018, on the idea of the NAV of April 26.

8. On T+4 day (i.e. on April 29), items as per the new ‘scheme desire’ might be credited in the subscriber’s account.