Since the government has made the NPS available for all citizens of the country, there is now a need to provide everyone with a method that can be used when people want to operate, change or track their NPS accounts. This is where Points of Presence, or PoPs, come into play.
Ajit Kumar, Chief Strategy Officer, KFintech says, “Points of Presence, or PoPs, are service providers present all across the country to ensure that one is able to operate one’s NPS account smoothly without any hindrance.” PoPs are also appointed by the PFRDA, forming a network of branches, which are known as PoP Service Providers (PoP SP).
Apart from providing you with facilities like opening a Permanent Retirement account, and being able to contribute to your NPS fund, experts point out PoPs also serve a plethora of other purposes. The primary function of a PoP, or a PoP SP, is to enable you to register a Tier I or a Tier II account, as per your convenience.
Kumar explains, “A PoP is responsible for accepting one’s duly filed Composite Subscriber Registration Form (CSRF) and verifying the form for one’s date of birth, bank, details of the scheme and the nominations. The PoP also serves the purpose of verifying the customer documents as per existing, prescribed norms.”
A PoP is also responsible for collecting your NPS Contribution Instruction Slip (NCIS) along with your application form, ensuring that mandatory and relevant details are given by you in your NCIS. “They also remit the funds, after deducting their charges and taxes, to the Trustee Bank within one banking day from the date of one’s application,” says Kumar.
While you submit your NCIS, the PoP performs the due diligence of checking your Permanent Retirement Account Number (PRAN), along with your payment details and other documents. Your contribution details are then uploaded to the Central Recordkeeping Agency system bank in correspondence to your PRAN.
How are PoPs useful to manage your funds and personal details?
A Point of Presence also serves the purpose of changing your personal details as per your requirement, within one banking day of your application. You can also change your investment scheme or your fund manager, through your PoP, if you are not happy with the performance of your fund.
According to Kumar, in case you are unhappy with the overall performance of your NPS account and choose to withdraw your account, the PoP will facilitate it on the same day, provided your application is processed within banking hours.
In case your application is processed after banking hours, the same is processed the next banking day. Kumar explains, “Your PoP SP is also responsible for changing your location and issuing prints of your account statement, as and when needed. In case you lose your PRAN card, you can also apply for another one from your PoP.”
He further adds, “In case you have any grievances pertaining to your National Pension System account, you can submit them to your respective PoP, which would then receive and upload the same on the Central Grievance Management System (CGMS) of the CRA.”
In short, all services that are prescribed by the PFRDA are provided by the PoPs or the PoP SPs.