NPS Withdrawal Rules: PFRDA has made ‘Penny Drop’ verification mandatory for shareholders to withdraw money under NPS. This will ensure timely transfer of shareholders’ money.
NPS Withdrawal Rules: There is big news for the investors of National Pension System. Pension Fund Regulatory and Development Authority (PFRDA) has made ‘Penny Drop’ verification mandatory for shareholders to withdraw money under NPS. This will ensure timely transfer of shareholders’ money.
Penny Drop Verification Mandatory
Under the ‘Penny Drop’ process, the Central Record Keeping Agencies (CRAs) look at the active status of the Bank Saving Accounts and collect the bank account number and the ‘PRAN’ (Permanent Retirement Account Number) or the number filed. Matches the names given in the given documents.
These provisions will be applicable for all types of withdrawals in NPS, Atal Pension Yojana (APY) and NPS Lite as well as changes in bank account details of customers.
Know what is Penny Drop Verification?
The validity of the account is verified by depositing a small amount in the beneficiary’s bank account and doing a ‘test transaction’ by matching the name based on the Penny Drop response.
According to a recent notification from PFRDA, penny drop verification must be successful for name matching, processing exit/withdrawal applications and modifying the customer’s bank account details.
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