Pension Fund Regulatory Pension Fund Regulatory and Development Authority (PFRDA) has introduced a one-time password (OTP) onboarding facility for the National Pension System (National Pension System- NPS) scheme.
new Delhi. Pension Fund Regulatory Pension Fund Regulatory and Development Authority (PFRDA) on Monday introduced a one-time password (OTP) onboarding facility for the National Pension System (NPS) scheme. In a statement, PFRDA said, in its effort to provide a digital solution, PFRDA is already providing the facility to open online NPS account through e-signature in a paperless manner.
To make the process of opening NPS account more easy, PFRDA has now allowed subscribers to open APS account through One Time Password (OTP). In this process, customers of banks (registered POPs-point of presence), who wish to open an NPS account through Internet banking of the respective banks, can open such accounts using the OTP received on their registered mobile number.
At the same time, on opening NPS accounts through POP through non-internet banking digital mode, OTP and e-mail will be registered on the registered mobile number, which can be used to open paperless NPS accounts. After completion of KYC (Know Your Customer) the POP is required to present the data of the NPS Subscriber to the Central Record Keeping Agencies (CRA) along with the photo and signature image. Also, there is an undertaking that KYC / AML guidelines / rules have been followed.
The pension fund regulator stated that PoPs and CRAs have been advised to provide the necessary functionality of OTP-based authentication. He said, smooth account opening, end-to-end digitization and contribution of subscribers deposited in this process will ensure optimization of investment returns. PFRDA manages about 3.60 crore subscribers with over 4.55 lakh crore AUM under the National Pension System. Of the total subscribers, 2.25 crore subscribers are from the Atal Pension Yojana (APY).