Investing in NPS made easier by PFRDA for these subscribers Further subscribers who have not updated their signature and photo in their accounts are now to be provided an online facility to upload one. Presently there are two CRAs in NPS: NSDL and Karvy
The Pension Fund and Regulatory and Development Authority (PFRDA) has streamlined the processing of opening an National Pension Scheme (NPS) account through Central Recordkeeping Agency (CRAs) and Point of Presence (PoP) centres. This facility would help subscribers instantly generate their Permanent Retirement Account Number (PRAN).Here’s what has been changed:
“To streamline the process of onboarding NPS subscribers under Online PRAN Generation Module (OPGM), CRAs have introduced two methods: one with the photo and signature of the subscriber uploaded by respective nodal offices or PoP, and the other without the photo and signature of the subscriber,” said PFRDA in a circular dated November 23, 2023.
However, in instances where the photo and signature were not initially captured in NPS accounts such accounts were subsequently considered irregular until complete documentation is verified and recorded with the CRAs. In light of this PFRDA said in the above-mentioned circular, “To streamline such cases, the Authority hereby provides a revised process for onboarding of NPS subscribers under OPGM.”
The revised process for onboarding of NPS subscribers:
No new account shall be opened by CRA without a photo and signature of the subscriber. Further CRA shall also not facilitate corporates or PoPs to open such accounts i.e. without photo and signature of the subscriber.In the accounts where photo and signature was not updated, CRAs shall provide an online facility for uploading photo and signature.CRAs shall send alerts, on a monthly basis, to prompt the subscribers with pending documentation to complete the formalities so as to regularise their NPS accounts.PFRDA mentioned in the circular that no other changes were made apart from these changes.
Here are a few important FAQs on NPS.
How to open an NPS account?
According to the FAQs about NPS published by PFRDA, an NPS account can either be opened through Points of Presence (PoP) centres or online through the NPS website.Point of Presence (PoP): An NPS account can be opened through Points of Presence (PoP) centres registered with PFRDA.
“Point of Presence (PoPs) is the distribution channel and the first point of contact for applicants and subscribers. PoPs are mandated to provide services related to Subscriber Registration (Collection of forms and KYC verification), receiving /uploading contributions, processing subscriber requests for updation of account details, exercising choices, withdrawals, grievances resolution etc,” said PFRDA in its NPS FAQs.
Online Platform (eNPS) of NPS Trust: The link to open an NPS account online can be accessed here: http://www.npstrust.org.in/content/open-your-npsaccount-online
What are the two types of accounts that can be opened in NPS?
According to the FAQ about NPS published by PFRDA, “Under NPS there are two types of accounts- Tier I and Tier II.”Tier I is an individual pension account which is the default pension account having all the tax incentives under the Income-tax Act, 1961.
Tier II is an optional investment account available to a subscriber having an active Tier-I account. Tier-II accounts have no withdrawal restrictions and neither has any income tax benefits. “Tier-II is not a Pension Account,” said PFRDA in an FAQ about NPS.
What is PRAN?
“PRAN is a unique identification number allotted to a subscriber for his/her Individual Pension Account opened under NPS. The PRAN remains unchanged even though the subscriber shifts employment /sector /location,” said PFRDA in an FAQ about NPS.What are the charges under NPS for using PoP centres?
According to a frequently asked question (FAQ) by PFRDA about NPS there are certain charges for using the services of Point of Presence (PoP) centres. All of these charges would be collected upfront from the subscribers. They are:Initial subscriber registration and contribution upload: Rs 200
Any subsequent transactions: 0.25% of the contribution subject to a minimum of Rs 20 and maximum Rs 25,000.
Non-financial charges: Rs 20
Contribution through eNPS platform of NPS Trust: 0.10% of contribution subject to a minimum of Rs 10 and maximum of Rs 10,000
Persistency charges: Rs 50 per annum
Table showing the list of charges to be paid for using various services in Point of Presence (PoP) centres.Source: PFRDAConnect with Experts - Wealth creation made easy
This story originally appeared on: India Times - Author:Faqs of Insurances
