As part of its developmental mandate and to increase the outreach of National Pension System (NPS), Pension Fund Regulatory and Development Authority (PFRDA) has taken steps to ensure paperless on boarding via convenient modes.
In its endeavor to offer digital solutions, PFRDA has already provided facility of opening of online NPS Account in a paperless manner via e- signature. To further facilitate the level of ease for NPS Account opening, the subscribers will now be permitted to open their NPS account through One Time Password (OTP) also.
AS per the new facility, the customers of banks (registered as POPs- Points of Presence), willing to open NPS Account via internet banking of the respective banks, can open NPS Accounts using OTP received on their registered mobile number.
However, for 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.
After 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 suggested 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 deposit of contributions in a faster way.
PFRDA administers over 3.60 crore subscribers under National Pension System with an aggregate Asset under Management (AUM) of more than Rs 4.55 lakh crore. Out of total subscribers, 2.25 crore subscribers are under Atal Pension Yojana (APY).