NPS investors must know about these latest NPS charges; PFRDA releases full list Read here to know the charges
The Pension Fund Regulatory and Development Authority (PFRDA) has specified the charge structure for point of presence (PoP) under National Pension Scheme (NPS).
Appointed by the PFRDA, points of presence are entities to provide services to all the citizens to open and operate their NPS accounts. They perform functions through their network of branches called POP service providers (POP-SP). A PoP service provider is more like a first point of contact between you and the NPS.
"The PoPs will continue to have the option to negotiate the charges with the subscribers, but within the prescribed minimum and maximum charge structure," said PFRDA in a master circular dated April 25, 2024.
What are the maximum and minimum charge structures as specified by PFRDA in the new master circular?
As per the master circular dated April 25, 2024, "Persistency charge per financial year will be applicable on accounts under NPS- All Citizen Model where the subscribers are associated with the PoPs for more than six months in a financial year. This charge will be payable annually to the associated PoPs by deduction of the units in the CRA system after closure of the financial year."Here's a table showing the charges:
NPS investors must know about these latest NPS charges; PFRDA releases full listSource: PFRDA Master Circular dated April 25, 2024
New NPS rule from April 1, 2024
In a circular dated April 1, 2024, PFRDA said that it has improved the security of the NPS architecture. This has been done by implementing a new security layer which is an Aadhaar-based two-factor authentication process. From April 1, 2024, this new authentication process will be required for all password-based users logging into the CRA system.PFRDA further stated that Nodal offices in the government sector can use Aadhaar OTP for two-factor authentication on the CRA and NPSCAN systems. "To commence Aadhaar Mapping, the Oversight Office (PrAO/DTA) must first link Aadhaar with the corresponding CRA User ID. PAO/DTOs must link their Aadhaar with their CRA User ID to enable DDOs to commence Aadhaar linkage," said PFRDA in a circular dated March 15, 2024.
How PFRDA aims to make NPS safer for government sector employees
On March 27, 2024, PFRDA issued a new circular titled 'Digital Safety Practices for Government Nodal Offices Under NPS Architecture Advisory, 2024'. In this circular, it was specified that while digitisation and uploading of documents on the CRA system, the information as per the Subscriber Registration form and supporting KYC details, as provided by the subscriber are to be verified with the supporting official valid documents (OVDs) and the information available in the service records of the employee.In the same circular, PFRDA also revised the process flow for exit/withdrawal from NPS. It was said that while executing the exit/withdrawal request on the CRA system, the information provided by the subscriber/claimant is to be verified with the supporting documents and the information available in the service records of the employee.
PFRDA however said that the instructions of the CRA system are to be followed by the user while processing exit/withdrawals/claims requests of the subscriber/claimants without any deviation, along with proper due diligence/certification with digital authentication (such as Aadhaar Authentication) before submission/approval in the CRA system.
This story originally appeared on: India Times - Author:Faqs of Insurances
