NPS Scheme: Big decision by PFRDA! Now, National Pension System Account holders can take this step via online mode

NPS Scheme: In a bid to make the exit process more easy and convenient, the Pension Fund Regulatory and Development Authority of India (PFRDA) has now enabled the National Pension System (NPS) scheme subscribers to adopt the online mode. After this big decision by the pension regulatory body, NPS account holders will be able to initiate the exit request in Central Record Keeping Agency (CRA) system using login credentials and provide the relevant details of exit like Corpus allocation for lump sum or annuity, Annuity Service Provider (ASP), Annuity scheme etc. and would upload the withdrawal documents including KYC. The online submission is further authenticated through either OTP or e-sign. The PFRDA informed about the decision in a written press statement today.

The POP shall identify the bank account number of the subscriber by ‘Instant Bank Account Verification’ through penny drop and also verify the uploaded documents.  The detailed online exit process for NPS Subscribers associated to POPs is as below:

1] Subscriber will initiate online exit request by logging to CRA system using his/her credentials;

2] At the time of initiation of request, the relevant messages about e-Sign/OTP authentication, authorization of request by POP etc. will be displayed to the Subscriber;

3] Subscriber will earmark the corpus for lump sum/ Annuity, Nomination details etc. as per regulations;

4] Subscriber will mandatory upload the scanned images of the relevant withdrawal documents along with the KYC;

5] Subscriber will authenticate the request through OTP wherein OTP will be sent to Subscriber's registered Mobile Number and Registered e-mail Id. If these details are incomplete or incorrect, Subscriber will have to first update Mobile Number or email ID through the associated POP /login before initiating the request.

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Informing about the role of POP now, PFRDA said, "The role of POPs while performing the task of processing Withdrawal requests of NPS Subscribers is defined under PFRDA (Point of Presence) Regulations 2018 under Regulation-15 (2) (c) which needs to be complied with."

For successful processing of online/offline withdrawal requests of NPS subscribers, PoPs shall be incentivized with a fee @ 0.125% of the corpus with a minimum amount of Rs 125 and maximum up to Rs 500 payable by the Subscribers.

"Central Record Keeping Agencies (CRAs) and POPs are advised by PFRDA to develop the required technical functionalities in a time bound manner in the interest of NPS Subscribers," PFRDA press note concluded.

Under the current process of exit of NPS Subscribers of POPs, the subscribers have to physically approach their POPs to complete their withdrawal request process and the task is performed offline. The subscribers are required to submit the NPS withdrawal forms along with the other supporting documents for authorization by POP.

Now in addition to the existing offline process as mentioned above, the subscribers shall also have an online option to submit the withdrawal documents and authorize their withdrawal request by using OTP or e-sign to make the process seamless in a paperless manner.