PFRDA allows Aadhaar-based online, e-KYC to open NPS account

NEW DELHI: The Pension Fund Regulatory and Development Authority (PFRDA) on Tuesday allowed online Aadhaar e-KYC process for onboarding of new subscribers under the National Pension System (NPS).

"The recent permission given by Dept of Revenue to perform online e KYC shall further simplify the process of account opening since the process offers the Subscribers a unique experience of NPS Digital Journey," the PFRDA said in a press statement today.

Last year in May, the regulator had allowed Aadhaar-based offline paperless KYC (Know Your Customer) for onboarding of new subscribers under the pension plan. The process helped in immediate activation of NPS accounts following instant KYC verification and also immediate deposit of NPS contribution by the subscriber.

The PFRDA has allowed various digital enablers like a one-time password (OTP) based authentication, paperless onboarding, e-sign based authentication, D Remit, Video Customer Identification to facilitate remote onboarding, online exit tools, online enrollment for those in government jobs, self-authentication based exit by offline Aadhaar, self-declaration based partial withdrawal, instant bank account verification before passing on NPS benefits, among others.

It has mandated NSDL e-Governance Infrastructure Limited, one of its central record keeping agency, to act as the global Aadhaar user agency for NPS and Atal Pension Yojana.