Amidst the news of the separation of PFRDA and National Pension Trust, there is a big news for its account holders. PFRDA has made some changes regarding the Exits and Withdrawals under the National Pension System.
Amidst the news of the separation of PFRDA and National Pension Trust, there is a big news for its account holders. PFRDA has made some changes regarding the maintenance of the account (Exits and Withdrawals under the National Pension System), due to which withdrawing money from the account can cause loss. Also Read: PPF Investment Scheme: You can make lakhs by depositing Rs 34 daily, know how
PFRDA has changed Rule 6 of Exits and Withdrawals. Under this, if an account holder makes a withdrawal from Tier I account, then his Tier II account will be automatically closed and the amount deposited in it will be returned. HS Tiwari, general secretary of the All India Accounts Committee, said that if this happens, the account holder will not be able to get the full benefit of the account. Since this scheme is linked to the pension received on attaining the age of 60 years, so closing the account in the middle can lead to loss. It would be better to think properly before exiting from NPS. Also Read: EPF Interest: Not received the interest money on EPF, EPFO told how long it will be available
Apart from this, PFRDA has made a change. That is, if the Tier II account is opened under the Central Government’s National Pension Scheme Tier II Tax saving scheme 2020, then it can be closed only after maturity. Another change is that if the account holder has attained the age of 60 years and has not given the withdrawal application under Rule 7 to close the NPS account before 1 month, then the amount deposited in his account will be monetized and deposited as per the instructions. will be kept. Also Read: Go First Airline Offer: Travel for free in Goa and Maldives with Go First Airline Offer
What is NPS
There are two types of accounts are opened in the National Pension System. Tier I account is pension account, whereas, Tier II account is voluntary savings account. NPS subscribers having Tier I account can also open Tier II account. Tier II accounts can also be opened by the private sector, businessmen and housewives. The Modi government has given the exemption to open this account under the National Pension Scheme Tier II Tax saving scheme 2020.
NPS money will be used in IPO
There is also news that pension fund managers (PFMs) will soon be allowed to invest in initial public offers (IPOs) and key stocks. Pension Regulatory and Development Authority (PFRDA) chairman Supratim Bandyopadhyay had said in the past that the regulator aims to increase the number of members of the retirement fund. At present, PMFs can invest the equity component only in such stocks whose market capitalization is more than Rs 5,000 crore and which are tradeable in futures and options.
PFRDA and NPS Trust will be separate
For this, PFRDA and NPS Trust are going to be separated. Modi government will bring a bill soon. An official said that the final decision in the matter is awaited by the Parliament to amend the PFRDA Act. Supratim Bandyopadhyay said that amendment in PFRDA Act is necessary for separation.
