PFRDA’s Penny drop facility: The NPS subscribers can avail the ‘Penny Drop’ facility during the process of applying for exit/withdrawal. This verification will be done from the records of Central Record Keeping Agencies (CRAs).
PFRDA’s Penny drop facility: The Pension Fund Regulator and Development Authority (PFRDA) has introduced a new facility Penny drop for NPS subscribers. With the help of this, withdrawal will become easy and simple for the subscribers. With this facility, instant bank account verification of the subscribers will be done. This will give information about whether the bank details given by the subscribers are active or not.
Actually, when NPS subscribers apply at the time of exit or partial withdrawal, the bank details must be correct for the amount to be credited in the bank account on time. It is often observed that due to wrong bank account number of NPS subscribers, mistake in IFSC, name mismatch, account freezing, inactive account, account transfer or any other problem, the withdrawal amount is not transferred to the savings account. .
What is Penny drop facility
With the help of penny drop facility, bank account details of NPS subscribers can be easily verified. Under this facility, along with instant verification of the bank details given by the subscribers, it will be possible to know whether the account is active or not.
How Penny drop facility will work
The ‘Penny Drop’ facility can be availed only during the process of applying for exit/withdrawal from the NPS subscribers. This verification will be done from the records of Central Record Keeping Agencies (CRAs). CRA will check the bank details and activation through penny drop. At the same time, with the help of Permanent Retirement Account Number (PRAN), other details including name will be matched in the subscriber’s bank account. The subscriber will be able to verify the account details by matching the name on the basis of penny drop response. This facility will ease the withdrawal from the NPA account.
Charges for Penny drop facility
According to the PFRDA circular, the charge for penny drop facility has been kept very low. K Fin Technologies Pvt Ltd is charging Rs 1.90 plus tax for this. At the same time, NSDL e-Governance Infrastructure Private Limited is charging Rs 2.40 plus tax. This charge includes Re 1 deposited in the savings bank account of the beneficiary under the penny drop process.
