The Pension Fund Regulatory and Development Authority (PFRDA) has issued detailed guidelines on onboarding of new subscribers under the National Pension System (NPS) and released a new subscriber registration form (SRF), the regulator said in a recent circular.
The move is aimed at providing a seamless, inclusive, and compliant onboarding for subscribers under the NPS All Citizen/Corporate model, or other schemes regulated or administered by the PFRDA.
Steps involved in subscriber onboarding process in NPS
The subscriber onboarding journey involves selecting either ‘all-citizen model’ or ‘corporate model’ or any scheme under the Multiple Scheme Framework (MSF) under NPS, providing personal details, completing KYC formalities, providing consents etc.
In this regard Points of Presence (PoPs) serve as the primary interface, supported by Central Recordkeeping Agencies (CRAs) for facilitation of operational activities and recordkeeping.
What are the onboarding modes under NPS?
There are two modes for onboarding of subscribers:
(i) Digital Mode: Facilitated through online platforms, offering self-assisted or assisted options.
(ii) Physical Mode: Performed at PoP branches using the physical Subscriber Registration Form (SRF).
How is KYC done, and what are the modes of verification in the onboarding process?
KYC (know your customer) can be performed through ‘Face-to-Face’ or ‘Non-Face-to-Face’ methods, integrated into both digital and physical onboarding.
Face-to-Face KYC Modes
These methods involve direct interaction between the subscriber and a PoP official, ensuring robust identity verification:
(i) Physical/Face-to-Face Verification: The PoP official verifies original Officially Valid Documents (OVDs) (e.g., Passport, Aadhaar, Voter ID) and retains a copy marked “original seen and verified”.
(ii) Assisted Video-Based Customer Identification Process (VCIP): A live video call with a PoP official verifies identity and documents in real-time.
(iii) Aadhaar-Based Biometric e-KYC: Subject to Section 11A of the PML Act, a PoP official authenticates identity using fingerprint, iris, or face recognition.
(iv) Digital KYC with Human Assistance: A PoP official captures a live photograph, digital OVD image, and geo-coordinates, equivalent to in-person verification.
Non-Face-to-Face KYC Modes
These methods enable remote verification, enhancing convenience for digital onboarding:
(i) Aadhaar-Based OTP e-KYC: Subscribers authenticate using an OTP sent to their Aadhaar-registered mobile number, subject to Section 11A of the PML Act.
(ii) Aadhaar Offline XML/QR Code: Subscribers provide offline Aadhaar data for verification.
(iii) Unassisted VCIP (Self-Service Video KYC): Subscribers use a secure video platform for automated identity verification.
(iv) Hybrid VCIP: Combines automated and human review for complex cases.
(v) DigiLocker: Subscribers submit KYC documents via DigiLocker, as per PFRDA Circular No. PFRDA/2021/05/PDES/05 dated February 3, 2021.
(vi) CKYC Identifier: Subscribers provide a 14-digit CKYC identifier with consent to retrieve records from the Central KYC Records Registry (CKYCR).
(vii) Bank Core Banking System (CBS): For existing bank customers (where the bank is a PoP), KYC records from CBS can be used, re-confirmed via OTP.
Additional directions for onboarding journey
-PoPs shall ensure all modes of onboarding are accessible to persons with disabilities, offering assisted VCIP, alternative liveliness checks (e.g., document-based OVDs, CKYCR/DigilLocker records), and physical support at branches.
-Maintain records of KYC declarations, consents, and verification processes for PFRDA inspection.
-Retrieve/update CKYC records within prescribed timelines. For non-CKYC subscribers, capture and upload KYC data within 10 days.
-PoPs may rely on SEBI KRA or other third-party KYC, verifying compliance with PML Rules.
-Verify employer details via CHO/CBO registration numbers, ensuring accuracy for payroll-linked contributions.
-Follow the risk-based schedule for KYC updates, flagging accounts in CRA systems.
-PoPs shall guide subscribers on NPS benefits, investment options, and KYC requirements, using multilingual materials and support for rural/low-literacy subscribers.