In the current process, NPS subscribers have to physically approach the Points of Presence (POPs) to complete the withdrawal request process.
National Pension System (NPS) subscribers will now be able to exit the NPS through online mode. The Pension Fund Regulatory Authority of India (PFRDA) said in a statement that in the current process NPS subscribers have to physically approach the Points of Presence (POPs) to complete the withdrawal request process. This entire process happens offline. There are entities like POP i.e. SBI, ICICI Bank, HDFC Bank etc., which are registered with PFRDA to act as customer interface.
Subscribers are required to submit NPS withdrawal forms and other supporting documents for authorization by POPs. Now with this offline exit process, NPS subscribers will also have the option of online exit. Subscribers will be able to submit withdrawal documents online and authorize their withdrawal requests online using OTP / e-sign.
This is the process
According to PFRDA, in the online process, a POP-linked subscriber will be able to log in to the Central Record Keeping Agency (CRA) system and submit an exit request. After this, they have to provide details related to exit such as fund allocation for lump sum / annuity payment, annuity service provider (ASP), annuity scheme etc. Along with this, documents need to be uploaded including KYC. After this, POP will identify the subscriber’s bank account number through ‘Instant Bank Account Verification’. Also uploaded documents will also be verified.
The statement said that the subscriber is charged for successfully processing the online / offline withdrawal request of the NPS Subscriber. It is 0.125 per cent of the fund, which is minimum Rs 125 and maximum Rs 500.
