Pension regulator tightens rules to cut back delay in deposits

0 0 Jan 15, 2014

The Pension Fund Regulating and Development Authority (PFRDA) has tightened rules for adding contributions by different central and state ...

The Pension Fund Regulating and Development Authority (PFRDA) has tightened rules for adding contributions by different central and state government departments after numerous complaints from shareholders of delays as well as losses.

Delay in adding the pension side of the bargain sometimes lowered your fund values of subscribers and brought on inordinate losses as the new pension scheme (NPS) operates using a real-time basis having subscribers funds invested through units whose net asset benefit fluctuates with alterations in prices of bonds and equities.

PFRDA sources told FE the new rule is applicable for central and state government departments and not really retail investors whom deposit their contribution by way of a bank.

“There have been delays due to cheque clearing as well as cheque rejections in some cases where the pay out and accounts workplaces of central federal and strict treasury workplaces of states never have adopted the NEFT/RTGS transaction facilities, ” the state said.

In some sort of notification, PFRDA said it's been decided to bring to close the remittances of NPS contribution resources through physical instruments and also to accept remittances only through electronic mode from April 2014.

“Accordingly from April 1, every one of the nodal offices remitting NPS contributions have to mandatorily remit NPS through electronic mode – NEFT as well as RTGS only, ” your regulator said.


Previously, the Chief Vigilance Commission had ordered government offices to change to electronic mode to avert delays or maybe frauds. However, some government departments continue to operate through your physical mode, causing scope for errors, delays and rejections.

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Taxalertindia: Pension regulator tightens rules to cut back delay in deposits
Pension regulator tightens rules to cut back delay in deposits
Taxalertindia
http://www.taxalertindia.com/2014/01/pension-regulator-tightens-rules-to-cut.html
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http://www.taxalertindia.com/2014/01/pension-regulator-tightens-rules-to-cut.html
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