NPS :Subscribers will now apply online to opt out of the National Pension Scheme

NPS :Subscribers will now apply online to opt out of the National Pension Scheme

Pension fund regulator PFRDA said on Wednesday that subscribers who want to opt out of the National Pension Scheme (NPS) can apply online now. According to regulator, the current withdrawal system from NPS is completely offline, in which the subscriber has to go to an authorized center to close the account. In order to close the NPS account in the current system, the subscriber needs to go to the Authorized Center. Now, Subscriber can authorize withdrawal request through OTP or e-sign in online option.

Withdrawals can be authorized by OTP or e-sign. According to the Pension Fund Regulatory and Development Authority (PFRDA), till now the subscriber had to fill up the NPS withdrawal form and submit it along with the required documents at the Point of Presence (POP) i.e. Authorized Center. The PFRDA said the subscriber will now have an online option along with the current offline process for submitting the withdrawal form. This option allows the subscriber to authorize the withdrawal request via OTP or e-sign.

Subscribers who do not want to continue in the scheme, can submit online all the withdrawal document along with with KYC and required information.  The PFRDA said that the subscriber will have to start the exit process in the Central Record Keeping Agency (CRA) system through login ID and password in the online process. The annuity service provider (ASP), in addition to the annuity scheme, will have to provide information regarding a lump sum payment and annuity purchase and upload the withdrawal document along with the KYC.

There will be a withdrawal request processing fee equal to 0.125% of the corpus. The Authorized Center will then identify the subscriber’s bank account number through instant bank account verification and verify its uploaded document. Authorized center will get fee @ 0.125 % share of the corpus of NPS subscribers for processing online or offline withdrawal requests, which will be a minimum of Rs 125 and a maximum of Rs 500.

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