This is a regulatory advice issued on 17/11/2016 by the Pension Fund Regulatory and Development Authority to all Points of Presence (PoPs). It is a continuation of the advisory dated 02/08/2016.
PoPs are advised to sensitize their underlying Corporates to provide subscriber contribution details along with the NPS contributions amount for timely remittance to protect the interests of corporate employee subscribers. It has been observed that some PoPs are accepting NPS contributions without the required subscriber contribution details. The advisory states that in order to avoid delays in processing contributions, PoPs will have to refund the contribution amount to the respective corporates on a T+1 basis (where T is the date of clear fund receipt) if the PoP does not receive subscriber contribution details on time.
Contact: Ashish Kumar, General Manager.
Key Entities Referenced
Pension Fund Regulatory and Development Authority: The issuing regulatory authority for this advice.
PoPs: Points of Presence, the entities addressed by the regulatory advice.
NPS: National Pension System, the scheme regulated by the advisory.
PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY
JOR A
Regulatory Advice
To
All PoPs,
Date: 17/11/2016
This is in continuation of our earlier advisory dated 02/08/2016 wherein all PoPs were
advised to sensitize all their underlying Corporates to provide subscriber contribution
details along with NPS contributions amount for timely remittance of the same in the
NPS system in order to protect the interest of Corporate employee subscribers.
However, it has been observed that some of the PoPs are still accepting NPS
contributions from Corporates without receiving the required Subscriber contributions
detail and keeping such amount till the receipt of such details from the corporates,
thereby adversely affecting the interest of subscribers as such NPS contributions cannot
be invested in the NPS system without details of their PRANs and their corresponding
amounts.
Therefore, in order to avoid delay in processing of contributions amount at PoP, it has
been decided that PoPs will have to refund the contribution amount to respective
Corporates on T+1 basis (where T is date of clear fund receipt), if PoP does not receive
subscriber contribution details on time.
Please acknowledge receipt.
Ashish Kumar
General Manager