Opening a National Pension System (NPS) account has become easier than ever. The Pension Fund Regulatory and Development Authority (PFRDA) has announced that the subscribers can open their new NPS accounts through one-time password (OTP) based authentication process. To increase the outreach of the NPS, the pension regulator authority has adopted a slew of measures. The PFRDA has earlier allowed the customers to open an online NPS account through e-signature. It has also permitted Aadhaar-based offline paperless KYC process for the new customers while opening a NPS account. This process enables immediate activation of NPS account due to instant KYC verification.
Here's how subscribers can open a NPS account using an OTP-bases authentication
The customers of banks (registered as POPs — Points of Presence) who wants to open a NPS account through internet banking of the respective banks, can open NPS accounts using OTP received on their registered mobile number.
For opening of NPS accounts through non-internet banking digital mode, through POPs (banks as well as non-bank POPs), OTP received on their registered mobile number and email can be used for opening a new NPS account.
Once the KYC process is complete, the POPs have to submit the NPS subscriber's date to the Central Record Keeping Agencies (CRAs) along with his photo and image of signature with an undertaking that the KYC/AML guidelines/rules have been duly complied with.
POPs and CRAs have been advised by PFRDA to provide the required functionality of OTP-based authentication.
PFRDA administers more than 3.60 crore subscribers under National Pension System with an aggregate Asset under Management (AUM) of more than Rs. 4.55 lakh crore. Out of total subscribers, 2.25 crore subscribers are under Atal Pension Yojana (APY).
Due to the coronavirus pandemic, the Central government has announced that the taxpayers have time till July 31 to complete their tax-saving exercise for FY2019-20. The tax-saving investment option includes National Pension Scheme (NPS) and other Section 80C investments like PPF and NSC.