Pensioners alert! Digital empowerment solutions for NPS subscribers to exit from National Pension System

Pensioners alert! Digital empowerment solutions for NPS subscribers to exit from National Pension System

Pension Fund Regulatory and Development Authority (PFRDA) offers NPS Subscribers through its intermediaries, a comprehensive and digitally enabled solutions for their diverse needs from on-boarding, servicing, exit and facilitating issuance of annuity from the empanelled Annuity Service Providers (ASPs) as per the choice of the subscribers.

Under the current process of exit of NPS Subscribers of POPs, the subscribers have to physically approach their POPs to complete their withdrawal request processed 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 authorizing their withdrawal request by using OTP/e-sign to make the process seamless in a paperless manner.

In the online process, Subscribers associated to a POP will initiate the exit request in Central Record Keeping Agency (CRA) system using login credentials and provide the relevant details of exit viz. Corpus allocation for lump sum/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 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 provided at the Annexure.

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 online/offline withdrawal request of NPS subscribers, PoPs shall be incentivized with a fee @ 0.125% of the corpus with minimum amount of Rs.125/- and max. 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.