New Rule: Pension fund regulator PFRDA has made KYC mandatory for withdrawal and annuity from NPS. The new rule will come into effect from April 1. Under this, many documents have to be uploaded.
Pension fund regulator PFRDA has made KYC mandatory for withdrawal and annuity from NPS. The new rule will come into effect from April 1. Under this, many documents will have to be uploaded. In the circular issued by PFRDA, it has been said that this will reduce the hassle of NPS members and also save the time taken at the time of withdrawal and annuity.
The regulator has said that under this, the investors of NPS and the concerned nodal offices will have to upload the necessary documents on their behalf and take further action. The regulator has said that all the necessary documents have to be scanned and uploaded and there is no need to physically submit the documents.
It is noteworthy that at present it takes several months to withdraw from NPS and take annuity. Moreover, the process of submitting separate documents for withdrawal and annuity is extremely cumbersome for NPS holders. In this, many types of documents have to be submitted and its investigation takes a lot of time.
These four documents have to be uploaded
- NPS withdrawal form
- Proof of identity and address given in the withdrawal form
- Bank account proof
- Photo copy of Pran card
Process will be like this
- Will log in to the CRA system and initiate an online withdrawal request
- While initiating the request, e-sign/OTP authentication, authorization of the request by the Nodal Office/POP
- Necessary information will be provided to the member about the request made
- The details of address, bank details, nominee etc. will be auto-fetched from the NPS account while initiating the request
- NPS holders will choose the percentage of lump sum/annuity amount
- The bank account (registered with CRA) of the NPS holder will be verified through online bank account verification
- Required KYC documents to be uploaded at the time of request
After this, verify by selecting the option of e-sign through OTP authentication or Aadhaar
Nodal office will be responsible for further verification of documents after request
Keep these things in mind
- Opt for OTP authentication via SMS and e-mail or e-sign via Aadhaar to do the entire process digitally
- Documents to be uploaded must be clear
- Please check before uploading name, date of birth, nominee’s name
What is the status now
At present, it takes about a month to process the NPS withdrawal after retirement. At the same time, the whole process of taking annuity and taking pension instead takes two to three months. The new rule will complete both the process simultaneously. With this, NPS holders will not need to run around much.
