Pension fund regulatory body PFRDA has started using PAN instead of Aadhaar for validation of new customers who can now be registered online under the National Pension System (NPS) scheme.
“PAN (permanent account number) cards will be used instead of Aadhaar for online opening of an NPS account. An online facility for opening of an NPS account based on verification of PAN and bank KYC has commenced,” Pension Fund Regulatory and Development Authority of India (PFRDA) Chairman Hemant G Contractor told PTI.
The Aadhaar-based online NPS account facility was started on a pilot basis, but following a Supreme Court judgment on usage of Aadhaar, it had to be discontinued.
He said under the PAN validated facility, customers can access their account on the NPS Trust website.
“The subscriber having an account with Internet banking facility with any of the six participating banks can open his NPS account online,” Contractor said.
The banks in question are State Bank of Travancore, State Bank of Patiala, Oriental Bank of Commerce, United Bank of India, South Indian Bank and Syndicate Bank.
The Supreme Court in October lifted restrictions on usage of Aadhaar card for social welfare schemes and said implementing agencies can use Aadhaar number voluntarily.
Contractor said the apex court has allowed usage of Aadhaar for the pension scheme under the National Social Assistance Programme (Old Age Pensions, Widow Pensions, Disability Pensions), apart from MGNREGS, PMJDY and EPFO.
While the online facility is expected to widen PFRDA’s reach, people may stand to gain from quicker replies.
NPS, regulated by PFRDA, has a wide spectrum of subscribers drawn from central, state, private and unorganised sectors.
According to PFRDA data, as of October 31, 2015, a total of 9,380,174 were on the subscriber list of NPS. The asset under management during the same period stood at Rs 1,02,878 crore.