In a rare case of interoperability between regulators, the PFRDA has allowed NPS intermediaries to use mutual fund or equity KYC for NPS. Through a circular dated 23rd September, the regulator allowed NPS Points of Presence (PoPs) to use KYC done for stocks or mutual funds for NPS registration. PoPs can fetch the KYC details from the relevant KRA (KYC Registration Agency).

Note however that investing in the NPS through a PoP is more expensive than investing directly in the NPS. PoPs charge a fee of 0.25% of every contribution. For example an NPS contribution of 50,000 per year will attract a fee of 125. Most banks in India have registered has PoPs. You can check if your local bank is a PoP here. In addition, entities such as Computer Age Management Services and Stock Holding Corporation of India are also PoPs. In addition, some fintech players like Paytm and Mywaywealth (earlier Fisdom) have also secured an online PoP license. They will be able to leverage their existing mutual fund clients for onboarding customers into NPS.

Alternatively you can directly sign up for NPS through a Central Recordkeeping Agency (CRA) such as NSDL or Karvy. This will save you the fees charged by PoPs for contributions. However in this case, the benefit of existing KYC for mutual funds will not be available. Nonetheless, the KYC for this type of online registration is relatively smooth and can be completed in a single sitting using your ID, address proof and PAN number. In a recently held Workshop on NPS for Corporates by PFRDA-FICCI in Mumbai, Mono Phukon, General Manager at PFRDA clarified that the regulator was in discussions with the Department of Revenue, Ministry of Finance for reviving Aadhar OTP KYC for NPS. Recently this procedure was revived by SEBI for mutual fund investors, which you can read about here

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