The PFRDA in a circular has come out with norms by which subscribers who have not withdrawn their contributions on superannuation will be protected from market volatility. The circular states that on superannuation if the corpus is not withdrawn, it will automatically be monetised and parked in a separate account, which will safeguard the pensioners’ corpus from market fluctuations.
Typically, a withdrawal application needs to be submitted to use the proceeds when the subscriber turns 60. In case the request is not received from the subscriber within one month from the date of superannuation or attainment of 60 years, the Central Recordkeeping Agency (CRA) system will automatically initiate a process of monetisation of units held in account of the subscribers on the last business day of the month. NSDL is the CRA. This way the NAV is protected to the extent possible for subscribers who are not actively tracking their NPS contributions.