Exit made easy for e-NPS subscribers: National Pension System to provide online option

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Published: May 28, 2020 3:44 PM

The online exit option will apply to both pre-mature as well as normal exit, in terms of provisions of the PFRDA (Exit and Withdrawal under National Pension System) Regulations 2015. The process would be implemented shortly.

national pension system exit option onlineNow, e-national pension system subscribers to get exit option online.

National Pension System Exit Option Online: The Pension Fund Regulatory and Development Authority (PFRDA) has decided to provide additional option to e-NPS subscribers to exit from the National Pension System online. Currently, e-NPS subscribers have to exit through an offline process. They have to approach the Bank-Point of Presence (POP) to get his withdrawal request processed by shifting his NPS account through Inter-Sector shifting (ISS) from ‘e NPS’ to the ‘Bank- POP. Following this the NPS withdrawal forms along with the specified documents are required to be submitted to the Bank-POP for authorization, to enable CRA to proceed with the exit process. However, after the latest decision of the PFRDA, e-NPS subscribers will be able to exit from NPS online.

In an official circular dated May 27, 2020, PFRDA said,”eNPS offers ease of online opening of NPS account in a paperless manner. Henceforth, it has been decided to provide additional option to e-NPS subscribers to exit also from NPS through an online process.”

The online exit option will apply to both pre-mature as well as normal exit, in terms of provisions of the PFRDA (Exit and Withdrawal under National Pension System) Regulations 2015. This option will be implemented soon, PFRDA said.

PFRDA said that the proposed online process of e-NPS exit would be akin to the existing online e NPS platform already in use for opening NPS accounts by customers of Bank-POPS.

Last week, PFRDA had introduced a new mode of payment for NPS subscribers. The new mode called Direct Remittance (D-Remit) would allow the subscribers to set up systematic investment through net banking for making regular contributions. The D-Remit facility would be available to subscribers for free.

“NPS subscribers are provided with various convenient options to deposit their voluntary contributions through the associated Nodal Offices, POPs, e-NPS or through NPS Mobile Applications. Now, an additional option/mode of contribution namely Direct Remittance (D-Remit) is proposed wherein the existing NPS Subscribers under Government/Non-Govemment/All Citizens Model would be able to deposit their voluntary contributions by creating a Virtual ID linked to their PRANs,” PFRDA had said in its circular.

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