The Pension Fund Regulatory and Development Authority (PFRDA) enabled e-NPS for the benefit of Government Sector subscribers through a circular dated August 23, 2021. In a recent circular dated 30th November 2022, the pension regulator said that till now around 9000 e-NPS accounts have been opened by Government employees.
e-NPS is currently largely used by Central Autonomous Bodies (CAB) followed by Civil and Defence Ministries. e-NPS provides several benefits to Government employees, including chances of higher returns. Here’s a look at five such benefits:
1. Faster Processing: e-NPS helps in expediting the account opening process compared to existing modes of account opening methods made available to the Government Sector
2. Ease of onboarding: e-NPS Government allows faster account opening, and higher efficiency and brings operational finesse to the nodal offices. It facilitates ease of onboarding of employees and online verification/authorization of employee NPS information by Nodal Offices.
3. Improves chances of better returns: As e NPS – Government significantly reduces the turnaround time (TAT) for account opening, the monthly contributions of NPS for the employees can be invested timely, which leads to higher investment returns for the benefit of subscribers, according to the regulator.
4. Low cost of account opening: e-NPS helps in optimizing the cost of account opening by end-to-end digitization.
5. Low data entry errors: As employees fill the data in the eNPS portal themselves while onboarding, data entry/digitization errors may come down resulting in a decline in the rejection of forms, says PFRDA.
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The regulator had earlier proposed to make e-NPS mandatory with effect from April 1, 2022. However, various departments/nodal offices under the Government sector are yet to adopt e-NPS Government holistically for the onboarding of new employees.
In the 30th November circular, the PFRDA once again informed all Government Nodal Officers of the State/Central/Autonomous Bodies to adopt the e-NPS Government for onboarding their new employees.