The Pension Fund Regulatory and Development Authority (PFRDA) has made it mandatory for the National Pension Scheme or NPS investors to upload certain documents, from April 1, 2023, to make the annuity payments smoother and simple, after exiting the NPS scheme.
PFRDA Made it Mandatory to Upload Documents For NPS Account
So, “The process of purchasing an annuity has been streamlined by the Pension Fund Regulatory Development Authority (PFRDA) in regulatory cooperation with IRDAI. Annuity Service Providers (ASPs) will use the NPS withdrawal form provided at the time of exit by the Subscribers at nodal officers / POPs for issuing an annuity.”
“In the interest of Subscribers and to benefit them with the timely payment of annuity income, the upload of the documents shall be mandatory with effect from 1st April 2023,” said the PRFDA in a circular released February 22, 2023.
So, the mandated documents which are to be uploaded for NPS withdrawal are:
- Exit or Withdraw the NPS form
- Identity and address proof same as mentioned in the withdrawal form.
- Bank account details
- PRAN card copy
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Steps for Registering an NPS Exit Request for Subscribers Online:
- After logging into the CRA system a subscriber can initiate the exit process.
- As soon as the request is processed, the subscriber is presented with information regarding e-Sign/OTP authentication, Nodal Office/POP authorization, etc.
- A few sensitive details like address, bank information, nominee information, etc, are already filled in the form automatically based on the information fed into the NPS account.
- Next, subscribers will set the percentage for funds allocation for either lump sum amount, annuity payment or annuity details.
- Your bank account will be verified online through the Penny drop facility.
- Now, as per PRFDA, subscribers will have to mandatorily upload the KYC documents, a copy of their PRAN card/ePRAN and Bank Proof.
- Subscribers will need to properly scan the documents and then upload them.
- Then as the final step, you will need to authenticate the process by either OTP verification or an e-Sign process.