NPS scheme change: How to do and timelines - Key things to know
Premium- Scheme preference change for NPS is processed in T+4 day for any scheme change requests
NPS subscribers have the option of switch units existing in a particular scheme to any other scheme and also change their pension fund managers. The scheme preference change request will be carried out online or or through point of presence. The option can be exercised two times in a financial year. In case of offline mode, physical application form can be downloaded from respective Central Record Keeping Agency websites while a small transaction charge will be applicable. NPS investors can invest in mix of equity, corporate bonds and government securities with the maximum allocation to equity capped at 75%.
NPS scheme switch: 8 things to know
1) Scheme preference change for NPS is processed in T+4 day for any scheme change requests (T is the date of authorisation).
2) If scheme preference change is executed after the end of previous business day and before the beginning of next business day then the T day is considered for redemption and the request will be settled in T+3 working days
2) For redemption (withdrawal of units) will happen on T+1.
3) Latest available NAV will be considered for units redemption.
4) On T+4, units as per the revised 'scheme preference' will be credited in the subscriber's account.
5) For example, if scheme preference change request is authorized on April 25, (referred as T, the request will be executed on the next settlement day (April 26) (T +1).
6. Latest available NAV (i.e., NAV of April 26 will be considered for withdrawal of units from the subscriber's PRAN.
7. The units will be redeemed by the PFMs on April 26, 2018 on the basis of NAV of April 26.
8. On T+4 day (i.e. on April 29), units as per new 'scheme preference' will be credited in subscriber's account.
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