NPS scheme change: How to do and timelines – Key issues to know

NPS subscribers have the choice of swap items present in a selected scheme to another scheme and in addition change their pension fund managers. The scheme choice change request shall be carried out on-line or or by way of level of presence. The possibility may be exercised two occasions in a monetary yr. In case of offline mode, bodily utility kind may be downloaded from respective Central Record Keeping Agency web sites whereas a small transaction cost shall be relevant. NPS traders can spend money on 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 choice change for NPS is processed in T+4 day for any  scheme change requests (T is the date of authorisation).

2) If scheme choice change is executed after the top 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 shall be settled in T+3 working days

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

3) Latest obtainable NAV shall be thought of for items redemption. 

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

5) For instance, if scheme choice change request is allowed on April 25, (referred as T, the request shall be executed on the following settlement day (April 26) (T +1).

6. Latest obtainable NAV (i.e., NAV of April 26 shall be thought of for withdrawal of items from the subscriber’s PRAN.

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

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

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