The Pension Fund Regulatory and Development Authority (PFRDA) on January 23, 2026, issued circular regarding the expanded guidelines on reinvestment of returned & pending transaction amounts into the respective PRANs.
To provide subscribers with the benefit of market-linked returns on returned or unsuccessful withdrawal transactions, the Authority had issued Circular dated February 07, 2023 permitting reinvestment of returned amounts into the same PRAN based on the prevailing investment choice and pension fund allocation at the time of exit.
Initially, this facility was limited to cases where funds could not be credited due to incorrect bank account details. It has now been decided to extend the reinvestment facility to additional scenarios where withdrawal or annuity proceeds remain pending in the NPS system. These include returned or failed transactions due to bank-related issues, annuity cancellation proceeds (including Free Look Period and non-NPS cases), amounts held or withheld by the CRA due to quality checks, pending clarifications, legal matters, as well as returned transactions relating to Tier II, partial, and death withdrawals.
The Central Record Keeping Agency (CRA) shall reinvest such returned amounts into the subscriber’s PRAN after 30 days from the date of credit to the NPS Trust withdrawal account if the required documents or clarifications are not received. During this period, the CRA will communicate with subscribers and nodal offices through multiple channels and will inform them in advance about the proposed reinvestment, along with the procedure for reclaiming the reinvested amount.
Any subsequent claims on reinvested amounts shall be subject to market fluctuations. This circular is issued under the powers conferred by Section 14 of the PFRDA Act, 2013.
[Circular No. PFRDA/2026/06/SUP-TB/01]
