At present, to exit from NPS subscribers have to physically strategy their Points of Presence (POPs) to full their withdrawal request method and the process is performed offline. The subscribers are expected to submit the NPS withdrawal types along with the other supporting documents for authorisation by the PoP.
The PoP will recognize the bank account quantity of the subscriber by ‘Instant Bank Account Verification’ via penny drop and also confirm the uploaded documents. For prosperous processing of on line/offline withdrawal request of NPS subscribers, subscribers will have to spend PoPs a charge of .125% of the corpus with a minimum quantity of Rs 125 and maximum of Rs 500.
A subscriber will have to initiate on line the exit request by logging on to the CRA method applying his credentials. At the time of initiation of request, messages about e-Sign/OTP authentication, authorisation of request by PoP will be displayed. The subscriber will then have to earmark the corpus for lump sum/ annuity, nomination information, and so forth., as per regulations. The subscriber will have to mandatory upload the scanned photos of the relevant withdrawal documents along with the KYC. Once these are performed, the subscriber will authenticate the request via OTP which will be sent to the subscriber’s registered mobile quantity and registered e-mail Id. However, if these information are incomplete or incorrect, then the subscriber will have to update the mobile quantity and e-mail ID via the linked PoP /login ahead of initiating the request.
After prosperous submission of an on line exit request by the subscriber, the exit request along with scanned documents will be with the linked PoP in their CRA login. The PoP will then confirm the bank account and match the beneficiary information. On authorisation of request by the PoP, the request for exit will get executed in the CRA method. Also, the uploaded withdrawal and KYC documents will be created offered to ASPs on line for processing annuity. The regulator has advised CRAs and PoPs to create the expected technical functionalities in a time bound manner for the advantage of the subscribers.
Digital initiatives
The regulator has taken a lot of digital initiatives for on-boarding, contributions and servicing. In order to make onboarding to the National Pension System (NPS) uncomplicated, more rapidly and expense-successful, the Pension Fund Regulatory and Development Authority (PFRDA) has permitted registered intermediaries to use Video-primarily based Customer Identification Process (VCIP). The subscriber’s verification can be performed without the need of the physical presence ahead of the PoP. The VCIP will not only assist in expanding the attain of NPS as the account opening will be paperless, it will also assist in speedy account closure and any service request connected to NPS.
The pension regulator had introduced OTP-primarily based authentication for paperless onboarding in June 2019. Customers of bank-PoPs who open a NPS account via world wide web banking of the respective banks can authenticate applying OTP by way of registered mobile quantity or by e-signature. The regulator has also introduced Aadhaar-primarily based offline paperless KYC verification method for NPS onboarding.
It launched D-Remit (Direct Remittance) for voluntary contribution via net banking by generating a Static Virtual ID linked to their permanent retirement account quantity (PRAN). Subscribers get the similar day NAV if the contribution is created via this mode ahead of 8.30 AM on any bank working day. The minimum quantity contributed via D-Remit is `500 for each Tier I and Tier II accounts. A subscriber can set up systematic investment via auto debit guidelines in net banking by which periodical and normal contributions can be created in the NPS account.