The Pension Fund Regulatory and Development Authority (PFRDA) has offered that National Pension System (NPS) accounts can also be opened using one-time password (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 discussed in a press release.

 

This comes a few weeks after the PFRDA enabled opening of online NPS accounts in a paperless method through e- signature. As part of its developmental mandate and to increase the outreach of NPS, PFRDA has taken choice of steps to ensure ease of NPS on boarding through fairly numerous at hand modes.

Here is a take a look at how subscribers can open an NPS account using an OTP, in keeping with the latest PFRDA press release.

In this process, shoppers of banks (registered as POPs- Points of Presence), who wish to open an NPS account by means of Internet banking of the respective banks, can open NPS Accounts using OTP gained on their registered cellular amount.

However, for opening of NPS accounts through non-Internet banking digital mode, through POPs (banks along with non-bank POPs), OTP gained on their registered cellular amount and electronic mail can be used for paperless NPS Account opening, as in keeping with the release.

Post-completion of the know-your-customer (KYC) process, POPs will have to submit the NPS subscriber’s data/knowledge to the Central Record Keeping Agencies (CRAs) together with his image and image of signature with an endeavor that the KYC/AML pointers/regulations have been duly complied with.

POPs and CRAs have been recommended via PFRDA to provide the required capacity of OTP-based authentication.

PFRDA administers more than 3.6 crore subscribers underneath NPS with an aggregate asset underneath regulate (AUM) of more than Rs. 4.55 lakh crore. Out of general subscribers, 2.25 crore subscribers are underneath the Atal Pension Yojana, as in keeping with the release.

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