National Pension System withdrawal: NPS exit can be processed by POPs through soft copies till June 30

Nationwide Pension System (NPS). Representational picture

Nationwide Pension System (NPS) withdrawal guidelines: The Pension Fund Regulatory and Growth Authority (PFRDA) has permitted Factors of Buy (POPs) to course of the exit/withdrawal purposes of NPS subscribers based mostly on tender copies. Nonetheless, they must be certain that the laws on processing exits are complied with.

As a part of extra due diligence, the beneficiary financial institution particulars should be essentially verified and matched, earlier than authorizing the request of withdrawal based mostly on tender copies. Additional, all such data must be concurrently and compulsorily transmitted to CRA via tender copy. The POPs
could be solely accountable ought to any dispute come up out of such transactions at a later date.

The pension regulator has taken the above determination in view of the Covid pandemic. “Covid induced hardships proceed unabated and with a purpose to alleviate the difficulties being confronted by the Subscribers in submitting bodily purposes for exit/withdrawal and the logistical challenges confronted by POPs in amassing these purposes to course of and dispatch the identical to CRA, it has been determined to chill out the method of dealing with withdrawal purposes by POPs within the curiosity of Subscribers,” PFRDA mentioned in a round.

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” PoPs are actually permitted to course of the exit/withdrawal purposes based mostly on the tender copies after guaranteeing that the laws on processing exits as talked about in Chapter III 15 (2c) of POP Rules are complied with,” the regulator mentioned.

Necessary date

PFRDA mentioned that the comfort to POPs will likely be permitted until thirtieth June 2021 by which period the ‘on-line paperless exit course of’ based mostly on OTP/e signal is anticipated to be rolled out by CRA for the advantage of Subscribers. “From 1st July 2021, POPs are anticipated to be geared as much as course of the exit requests
of the Subscriber by authorizing the exit paperwork uploaded by the Subscriber within the CRA system and for which pointers already issued,” it added.

Previous rule

Final 12 months, POPs had been allowed to simply accept the scanned and self-certified pictures of exit paperwork via digital means to course of the withdrawal requests of the Subscribers. Nonetheless, the bodily purposes of these withdrawals purposes had been to be submitted by POPs to the respective Central File Maintaining Company (CRA) for storage and document protecting.