New Delhi: The Pension Fund Regulatory and Development Authority (PFRDA) has issued circular on expanded guidelines on reinvestment of returned, pending transaction amounts into PRANs.
PFRDA’s previous circular in 2023 allowed the reinvestment of returned amounts into the same PRAN, based on the investment choice and pension fund allocation prevailing at the time of exit. This policy was implemented to ensure subscribers benefit from market-linked returns.
Initially, only those NPS/APY funds which could not be credited to the subscriber’s bank account due to incorrect bank account details were eligible for reinvestment into the subscriber’s PRAN. However, PFRDA says, there are other scenarios where transactions remain pending in the NPS system following the authorization of exit/withdrawal and which prevents the NPS/APY subscribers from receiving the benefits of market returns.
Add Zee News as a Preferred Source
To further enhance subscriber benefits, and in continuation of the previous circular, PFRDA has decided that the following transactions will also be eligible for reinvestment into the subscriber’s PRAN by the Central Record Keeping Agency (CRA):
1. Returned or unsuccessful transactions which have failed to be credited to the subscriber’s or nominee’s bank account due to specific reasons (e.g., account closed, invalid IFSC, frozen/dormant status etc).
2. Annuity cancellation proceeds returned by ASP due to Free Look Period Cancellation (FLC) exercised by the subscriber.
3. Annuity cancellation proceeds due to Non-NPS cases (OPS or Family pension).
4. Amount kept on hold by CRA due to quality monitoring or pending clarification.
5. Amount withheld by CRA due to ongoing legal matters or disputes related to withdrawal requests.
6. Returned transactions pertaining to Tier II withdrawal, Partial withdrawal and Death withdrawal cases.
The CRA will reinvest the returned amount into the subscriber’s PRAN after a period of one month (30 days) from the date the funds are credited to the NPS Trust withdrawal account, in cases where required documentation or clarifications are not received from the subscriber, nodal office or ASP.
