NPS Alert: PFRDA allows video-based process; move brings great benefits - know them all

Pension Fund Regulatory and Development Authority (PFRDA) has now permitted its intermediaries to use Video based Customer Identification Process (VCIP) in order to further facilitate on-boarding, withdrawals, exit and for processing of other related service requests of National Pension System (NPS) Subscribers, it said in a media release. 

This option will be available to NPS subscribers in addition to the existing options including OTP/eSign-based onboarding, Offline Aadhaar based on boarding, third party reliance for KYC, e-nomination and e - exit for eNPS Subscribers. 

The step has been taken to help the subscribers overcome the challenges. 

The regulator has moved a lot of NPS services to the online mode including onboarding of new subscribers and their servicing. The physical presence of NPS Subscribers is required at POPs (Points of Presence) for in-person verification (IPV) to complete the process of exit and some other allied services.  

The regulator noted that compulsory physical presence was posing challenges for subscribers and PoPs/Nodal officer, leading to subscriber’s grievances and delays in the process of withdrawal and exit. 

In order to ensure that the intermediaries are not additionally burdened for introducing this facility, the intermediaries which are registered with other financial sector regulators are also allowed to  follow the VCIP guidelines issued by those regulators for performing for NPS related activities, the release said. 

However, the intermediaries which are solely registered and regulated by PFRDA, will follow the guidelines issued by PFRDA for performing VCIP.  

The regulator on 6 October issued guidelines via a circular.

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PFRDA is a regulator for NPS - a government-sponsored pension scheme - subscribed by employees of Government of India, state governments and by employees of private institutions/organisations and unorganised sectors. The scheme allows subscribers to contribute regularly in a pension account during their working life.