The Pension Fund Regulatory and Development Authority has reduced the time limit for withdrawal, giving a big relief to its customers. After this, the time taken to withdraw money from the National Pension Scheme has halved. After applying to withdraw money from the National Pension Scheme fund, the customer will get the money in just two days.
Earlier it used to take four days after requesting for withdrawal. The Pension Fund Regulatory and Development Authority with the help of Central Recordkeeping Agencies (CRAS), Pension Fund (PFS) and Custodians has enhanced its IT capability along with improving the system interface, to reduce the time taken for transactions under NPS. can go
Earlier, IRDAI has made many changes to improve NPS.
Earlier, the insurance sector regulatory body IRDAI has simplified the process of buying annuity from NPS funds after retirement. For this, an important change has been made in the rules of the National Pension Scheme, due to which it has become even easier to arrange for regular income after retirement.
According to IRDAI, now no member of the scheme will have to fill any separate proposal form to buy annuity from his NPS fund after retirement. Because earlier, those investing in NPS had to submit an exit form to PFRDA (Pension Fund Regulatory and Development Authority (PFRDA)) as well as a proposal form to insurance companies to buy annuity at the time of retirement.
Actually, the work of providing annuity to NPS subscribers is done by those insurance companies, which have been approved by PFRDA for this. Along with this, IRDAI monitors this entire process as a regulator of insurance companies acting as Annuity Service Provider (ASP).
According to the PFRDA rules, it is necessary to invest at least 40 percent of the amount deposited in the NPS in the purchase of annuity, against which pension is given every month. The remaining 60 percent can be withdrawn in lump sum after retirement.