BackPFRDA makes mandatory upload of withdrawal/ KYC documents to exit from NPS
The Pension Fund Regulatory & Development Authority (PFRDA) has made the mandatory upload of withdrawal/ KYC documents to enable seamless processing of exit and annuity for the benefit of National Pension System (NPS) subscribers.
PremiumThe Pension Fund Regulatory & Development Authority (PFRDA) has made the mandatory upload of withdrawal/ KYC documents to enable seamless processing of exit and annuity for the benefit of National Pension System (NPS) subscribers.
“In the interest of Subscribers and to benefit them with timely payment of annuity income, the upload of the documents shall be mandatory with effect from 1st April 2023," said the regulatory body in a statement.
NPS withdrawal documents
According to PFRDA, the NPS subscribers and the associated nodal officers/POPs/ corporate need to ensure that the following documents uploaded in the respective CRA user interface and the documents thus uploaded are to be legible,
A. NPS Exit/ Withdrawal Form
B. Proof of Identity and Address as specified in the Withdrawal form
C. Bank account Proof
D. Copy of PRAN card
When the new exit guideline from NPS will come into effect?
Effective from April 1, 2023, uploading the above-said documents will be required to submit mandatorily in order to exit from NPS.
How new NPS withdrawal rule will benefit subscribers?
In regulatory cooperation with IRDAI, PFRDA streamlined the purchase of annuity on November 20, 2022. Annuity Service Providers (ASPs) must utilise the NPS withdrawal form filed by subscribers at the time of exit at nodal officers / POPs for issuing annuities.
“The common proposal for Exit from NPS and for buying annuity from ASP facilitates parallel processing of Lump sum component and Annuity due to which the time taken by ASPs while issuing Annuity Policies is significantly reduced which result in faster Subscriber servicing and timely Annuity issuance," said PFRDA in a circular dated February 22, 2023.
How subscribers can initiate online exit request in CRA system?
Here are the steps for processing of exit request by Govt/Non Govt subscribers through a paperless mode, according to PFRDA.
1. Subscriber will initiate online exit request by logging into CRA system.
2. At the time of initiation of request, the relevant messages about e-Sign/OTP authentication, authorization of request by Nodal Office/POP etc. displayed to the Subscriber.
3. During request initiation, details like address, Bank details, nominee details etc. autopopulated from NPS account.
4. Subscriber will select fund allocation percentage for lump sum/annuity, annuity details, etc.
5. Bank Account of the Subscriber (registered in CRA) will be verified through online Bank Account Verification (Penny drop facility).
6. Subscriber needs to mandatorily upload KYC Documents (Identity & Address Proof), copy of PRAN card/ePRAN and Bank Proof at the time of submitting exit request.
7. Scanned documents should be appropriate i.e. scanned images should be legible.
8. Subscriber authorizes the request by using any one of the two following options to make the process paperless:
a. OTP Authentication – Distinct OTPs will be sent on Mobile Number and email ID of the Subscribers.
b. e-Sign – Subscribers will e-Sign the request using Aadhaar.
What are NPS exit rules?
The National Pension System (NPS) allows subscribers to withdraw from the system in the following circumstances: upon turning 60 or reaching superannuation; prior to turning 60 years old or reaching superannuation; at any time after turning 60 until 75; due to physical incapacity or upon suffering a bodily disability before turning 60 or reaching superannuation; due to death or the subscriber being reported missing.
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