The Pension Fund Regulatory and Development Authority has made it mandatory for NPS subscribers to upload certain documents with effect from April 1, 2023, for exiting the scheme.
The Pension Fund Regulator and Development Authority (PFRDA) has issued a new guideline regarding the National Pension System, in which it has been made mandatory for NPS subscribers to upload certain documents with effect from 1 April 2023. The Pension Fund Regulator says that uploading these documents will ensure timely annual income payment. Therefore, customers investing in NPS scheme will have to upload some important documents.
As per the PFRDA circular, the same process of exit and annuity requires uploading of certain withdrawal and KYC documents. The documents that you need to upload mainly include these documents.
- These documents have to be uploaded
- Withdrawal / Exit Form from NPS
- Proof of identity and address as mentioned in the withdrawal form.
- Proof of your bank account
- Photocopy of PRAN card
Explain that whether you have opted for Government NPS scheme or Corporate NPS scheme, you have to follow these steps to exit NPS.
- You need to login to the CRA system to initiate an online exit request.
- Once you start the application, you will see relevant information regarding e-Sign/OTP authentication, Nodal Office/POP authority etc.
- Details like your bank details, address, nominee details etc. are automatically populated in the NPS withdrawal form after you initiate the request from the NPS account.
- You can choose the fund allocation percentage for annuity and withdrawable corpus, annuity details etc.
- Your bank account will be verified online using Penny Drop Verification.
- You need to upload KYC documents (identity and address proof), PRAN card/ePRAN copy and bank proof while submitting the NPS exit request.
- All scanned documents should be readable.
- You can authorize the request using either of the two options.
- Various OTPs will be sent to your phone number and email ID for OTP verification.
- By e-signing you can e-sign the request using your Aadhaar card.
Explain that to exit the National Pension System (NPS), you can withdraw from the pension scheme before or after reaching the retirement age of 60 years. On exit, you should use 40% of the accumulated amount to buy an annuity from the annuity service provider. If the remaining amount is less than Rs.5 lakh, it can be withdrawn as a lump sum amount.
