Pension: Pension Fund regulator PFRDA said on Wednesday that shareholders of the National Pension System (NPS) would be able to use the ‘online’ method to get out of it.
Under the current procedure, NPS shareholders are required to approach the ‘Point of Presence’ (POP) for withdrawal requests. The entire process has to be completed by going to the respective POPs (designated branches of banks, post offices etc.).
The Pension Fund Regulatory and Development Authority (PFRDA) said, “In addition to the current ‘offline’ process, shareholders will also have the option to apply ‘online’ for withdrawals.” They can submit relevant documents online for withdrawal and can use OTP (One Time Password) / e signature for withdrawal request. ”
In the online process, POP related stakeholders will login and request withdrawal in the ‘Central Record Keeping Agency’ system. They will have to provide information about the withdrawal and provide clearance documents including KYC (know your customer). After successful settlement of ‘online’ or ‘offline’ withdrawal requests of NPS shareholders, the POP will have to provide 0.125 percent of the fund as incentive. This amount will be minimum Rs 125 and maximum Rs 500. This amount will have to be given to the shareholders.
In the event of premature withdrawal, up to 20 percent of the accumulated pension fund in PRAN can be withdrawn in a lump sum and the remaining amount (80 percent or more) can be used to purchase an annuity plan.
Using an offline basis will help NPS customers get out of the plan. Know what its process
1. The NPS customer must enter the CRA system using their PRAN and I-PIN.
2. After this, you have to select exit menu and give details of corpus, annuity service provider (ASP) details, annuity plan etc.
3. Document upload: will upload KYC document, withdrawal document, bank proof etc. to the subscriber.
4. E-Sign Authentication: Customer has to e-sign after giving all the details.
5. Acknowledgment ID: Upon submission of the exit request the subscriber will be given an acknowledgment ID.
If the amount is less than Rs 10 lakh, then the subscriber-authorization option will be provided to the subscriber.