Getty ImagesPension Fund Regulatory and Development Authority (PFRDA), on May 27, issued a press release stating that it has allowed Aadhaar-based offline paperless KYC process for onboarding of new subscribers under the National Pension System (NPS).
The process enables immediate activation of NPS account due to instant KYC verification and also facilitates immediate deposit of NPS contribution by the subscriber.
PFRDA, in its endeavor to facilitate ease of enrollment of subscribers, constantly enables various modes of NPS on boarding through various channels such as e-NPS and POPs (Points of Presence).
NSDL e-Governance is the central record keeping agency for NPS. Gagan Rai, MD and CEO, NSDL e-Governance Infrastructure said, “PFRDA’s initiative allowing paperless Aadhaar-based KYC process for opening NPS account is an appropriate one and the need of the hour. Besides making the authentication process more secure with Aadhaar, this move will also help in increasing the awareness and penetration of NPS in India. World over, we are gradually witnessing a transition towards a more tech-driven paperless set-up which not only expedites the entire customer on-boarding process but also elevates customer experience. A simple, secure and seamless process will make NPS a more popular choice especially amongst the youngsters, tech savvy investors.”
According to its press release, now PFRDA permits e-NPS/Points of Presence to use the offline Aadhaar of the prospective subscribers with their consent for opening NPS Accounts. The Aadhaar-based offline paperless KYC verification eliminates the need to provide physical copy of Aadhaar.
How the new process will work
As per this new process, an applicant can download the password-protected Aadhaar XML file in the offline mode by accessing Unique Identification Authority of India (UIDAI) portal through eNPS and share the same for his KYC. The facility can also be availed for opening NPS accounts through Points of Presence (POP), which are offering this facility.
In this process, the KYC details are in machine-readable XML format, which is digitally signed by UIDAI, allowing eNPS/ POPs to verify the demographic contents of the file and certify the same to be authentic. The identity and address of the applicant can be verified in the process, as per the release.
Recently, the pension fund regulator introduced a new mode of payment for NPS subscribers called Direct Remittance (D-Remit). This mode of NPS contributions allows the subscriber to set up systematic investment through their net banking by which regular contributions can be made into the NPS account periodically. The NPS contribution online payment in the D-Remit mode is free of cost as there is no charge in the transaction done.
Click here to download ET Online’s guide to everything personal finance in the times of Covid-19
The process enables immediate activation of NPS account due to instant KYC verification and also facilitates immediate deposit of NPS contribution by the subscriber.
PFRDA, in its endeavor to facilitate ease of enrollment of subscribers, constantly enables various modes of NPS on boarding through various channels such as e-NPS and POPs (Points of Presence).
NSDL e-Governance is the central record keeping agency for NPS. Gagan Rai, MD and CEO, NSDL e-Governance Infrastructure said, “PFRDA’s initiative allowing paperless Aadhaar-based KYC process for opening NPS account is an appropriate one and the need of the hour. Besides making the authentication process more secure with Aadhaar, this move will also help in increasing the awareness and penetration of NPS in India. World over, we are gradually witnessing a transition towards a more tech-driven paperless set-up which not only expedites the entire customer on-boarding process but also elevates customer experience. A simple, secure and seamless process will make NPS a more popular choice especially amongst the youngsters, tech savvy investors.”
According to its press release, now PFRDA permits e-NPS/Points of Presence to use the offline Aadhaar of the prospective subscribers with their consent for opening NPS Accounts. The Aadhaar-based offline paperless KYC verification eliminates the need to provide physical copy of Aadhaar.
How the new process will work
As per this new process, an applicant can download the password-protected Aadhaar XML file in the offline mode by accessing Unique Identification Authority of India (UIDAI) portal through eNPS and share the same for his KYC. The facility can also be availed for opening NPS accounts through Points of Presence (POP), which are offering this facility.
In this process, the KYC details are in machine-readable XML format, which is digitally signed by UIDAI, allowing eNPS/ POPs to verify the demographic contents of the file and certify the same to be authentic. The identity and address of the applicant can be verified in the process, as per the release.
Recently, the pension fund regulator introduced a new mode of payment for NPS subscribers called Direct Remittance (D-Remit). This mode of NPS contributions allows the subscriber to set up systematic investment through their net banking by which regular contributions can be made into the NPS account periodically. The NPS contribution online payment in the D-Remit mode is free of cost as there is no charge in the transaction done.
Click here to download ET Online’s guide to everything personal finance in the times of Covid-19
( Originally published on May 28, 2020 )
(Your legal guide on estate planning, inheritance, will and more.)
Download The Economic Times News App to get Daily Market Updates & Live Business News.
(Your legal guide on estate planning, inheritance, will and more.)
Download The Economic Times News App to get Daily Market Updates & Live Business News.
Get Unlimited Access to The Economic Times
