PFRDA introduces OTP based authentication for paperless NPS on-boarding

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Updated: Jun 29, 2020 1:45 PM

PFRDA has already enabled the opening of online NPS Account in a paperless manner through e-signature.

NPS, E-SIGN, otp, PFRDA, NPS online, paper-lessThe subscribers are now permitted to open their NPS account through One Time Password (OTP) also.

Opening NPS account becomes easier for those who wish to invest for their retirement. As part of its developmental mandate and to increase the outreach of the National Pension System (NPS), the Pension Fund Regulatory and Development Authority (PFRDA) has taken a series of steps to ensure ease of NPS on boarding through various convenient modes.

In its endeavour to provide digital solutions, PFRDA has already enabled the opening of online NPS Account in a paperless manner through e-signature. In order to further facilitate ease of NPS Account opening, the subscribers are now permitted to open their NPS account through One Time Password (OTP) also.

In this process, the customers of banks (registered as POPs- Points of Presence), who wish to open NPS Account through internet banking of the respective banks, can open    NPS Accounts using OTP received on their registered mobile number.

However, for the opening of NPS Accounts through non-internet banking digital mode, through POPs (Banks as well as Non – Bank POPs), OTP received on their registered mobile number and email can be used for paperless NPS Account opening.

Post completion of KYC, POPs have to submit the NPS Subscriber’s data/information to Central Record Keeping Agencies (CRAs) along with his photo and image of signature with an undertaking that the KYC/AML guidelines/rules have been duly complied with.

POPs and CRAs have been advised by PFRDA to provide the required functionality of OTP based authentication. This process would ensure seamless account opening, end to end digitization and optimizing of investment returns by the deposit of contributions in a faster way.

The investment made in NPS not only helps one save tax but also helps in saveing towards one’s retirement. The online opening of the NPS is called eNPS account opening.

Earlier, PFRDA had introduced a new mode of payment for the National Pension System (NPS) subscribers called Direct Remittance (D-Remit). The new mode of NPS contributions will enable the NPS subscriber to set up systematic investment through net banking by which periodical and regular contributions can be made into the NPS. One can directly invest in NPS from the net banking facility of one’s bank account.

PFRDA administers more than 3.60 crore subscribers under National Pension System with an aggregate Asset under Management (AUM) of more than Rs. 4.55 lac crore. Out of total subscribers, 2.25 crore subscribers are under Atal Pension Yojana (APY).

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