PFRDA makes it simper for NPS subscribers to exit – Know the process in easy steps

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Updated: December 24, 2020 12:18 PM

The process of 'self authorization' using offline Aadhaar will help NPS subscribers exist from the scheme easily.

As an NPS subscriber one can opt to either prematurely exit or opt for the final exit at the age of 60 years or on attaining superannuation or any time later as per regulations.

PFRDA has already enabled the opening of the National Pension System (NPS) accounts by using offline Aadhaar. Now PFRDA has decided to make the exit process also more agile and seamless by allowing the offline Aadhaar authentication for the purpose of self-authorizing exit requests of e-NPS subscribers. Under this process, the eNPS subscribers with a corpus up to Rs 10 lakh in their NPS accounts can furnish their offline Aadhaar details, for the purpose of exit.

As an NPS subscriber, one can opt to either prematurely exit or opt for the final exit at the age of 60 years or on attaining superannuation or any time later as per regulations. In case of premature exit, up to 20 per cent of the accumulated pension corpus in the PRAN can be withdrawn as a lump sum and the balance (80 per cent or above) has to be utilized to buy an annuity plan from an Annuity Service Provider (ASP) empanelled by PFRDA.

The process of ‘self authorization’ using offline Aadhaar will help NPS subscriber exist from the scheme easily. As per the circular, the PFRDA states the following process:

1. The NPS subscriber will have to login into the CRA system using their PRAN and I-PIN.

2. Thereafter, one has to select the exit menu and provide the details viz allocation of the corpus, Annuity Service Provider (ASP) details, annuity scheme etc.

3. Bank details will be shown in non-editable mode. Other details such as subscriber name, gender, father name, address details will be auto-populated in non-editable mode.

4. Document upload: Subscriber will upload KYC documents, withdrawal documents, bank proof etc.

5. E-sign authentication: After providing all the details, the subscriber will have to e-sign.

6. Generation of acknowledgement ID: On submission of the exit request, acknowledgement ID will be provided to the subscriber.

Self-Authorization option

If the corpus is below Rs 10 lakh, then Self-Authorization option will be provided to the subscriber. If a subscriber opts for ‘Self-authorization’, below process will be followed:

a. Subscriber will download the offline Aadhaar XML File from UIDAI website. UIDAI Link and help page will be provided to the subscriber for download of offline Aadhaar XML File.

b. Upload the offline Aadhaar XML file in CRA system and provide the Aadhaar Share Code, mobile number and email ID.

c. CRA system will validate the Aadhaar Share Code and mobile number with the offline Aadhaar XML file.

d. Subscriber name in CRA records should match Aadhaar.

e. After successful validation, the self-authorization withdrawal request will be accepted in the CRA system for execution.

f. ‘Instant Bank Acct verification’ through penny drop will be undertaken by CRAs and the cost will be borne by the respective subscribers.

CRA system will provide the subscriber’s details to concerned Annuity Service Provider or ASP (the insurance company you have selected to pay the annuity). Annuity Service Provider (ASP) will issue the annuity policy to the subscribers and will upload the annuity details in CRA system.

For e-NPS Subscribers whose corpus is more than Rs.10 lakh as well as for the subscribers associated to POPs (Point of Presence) , an online platform has recently been enabled, where the exit requests of All citizen/Corporate sector subscribers would be verified by POPs. The exits of e-NPS subscribers (not associated with any POP)  would be verified by their respective banks which are registered as POPs with PFRDA.

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