Pension Fund Regulatory and Development Authority (PFRDA) has made instant bank account verification mandatory for fund withdrawal and exit from the scheme.
New Delhi. Some changes have been made in the rules for withdrawal of money from the National Pension Scheme (NPS) or exit from this scheme. The Pension Fund Regulatory and Development Authority has made instant bank account verification mandatory for fund withdrawal and exit from the scheme. Through this change, PFRDA will ensure that the withdrawal amount is deposited in the customers’ accounts on time.
Under these rules, verification of customers’ bank accounts will be done through penny-drop method. According to the PFRDA’s October 25 circular in this regard, name matching, withdrawal and withdrawal requests are necessary for the verification process, according to the ET report. Furthermore, to change the bank account details of customers, penny drop verification must be successful.
These changes took place in the rules
The Pension Regulatory Authority has clarified that if the CRA fails to verify the penny drop, then any request for exit or withdrawal of money from NPS, change in the customer’s bank account data will not be accepted.
In case of penny drop failure, a decision regarding change in the customer’s bank account details will be taken as per a prescribed process with the concerned nodal office. Whereas, if CRA Penny Drop fails, the customer will be informed on his mobile number and email.
NPS Exit Rule
According to the rules of PFRDA, if the total amount deposited by the subscriber in NPS and interest is less than Rs 5 lakh, then he can withdraw the entire amount together. But, if it exceeds this, 40 percent of the amount will be kept for pension and the remaining 60 percent can be withdrawn together.
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