The step has been taken by PFRDA to make sure well timed switch of NPS funds to the subscriber’s account.
The provisions will apply throughout NPS, APY and NPS Lite for every type of exits/withdrawals in addition to for modification in subscribers’ checking account particulars.
The Pension Fund Regulatory and Development Authority has made ‘penny drop’ verification necessary for the withdrawal of funds by subscribers of the National Pension System (NPS) to make sure the well timed switch of cash.
Through this course of, Central Recordkeeping Agencies (CRAs) examine the energetic standing of the financial savings checking account and match the title within the checking account quantity with the title in PRAN (Permanent Retirement Account Number) or as per the paperwork submitted.
Ambit
The provisions introduced by the pension regulator will apply throughout NPS, Atal Pension Yojana (APY) and NPS Lite for every type of exits/withdrawals in addition to for modification in subscribers’ checking account particulars.
The validity of the account is verified by making a ‘test transaction’ by dropping a small quantity into the beneficiary’s checking account and matching the title based mostly on the penny drop response.
“The penny drop verification has to be necessarily successful with name matching, for processing the exit/withdrawal requests, and also for modifying the subscriber’s bank account details,” information company PTI reported quoting a latest round of PFRDA.
It additionally mentioned that “no request” for exit/withdrawal, and modification of the subscriber’s checking account particulars shall be allowed in case of failure of penny drop verification by the CRA.
In case of penny drop failure, no matter the rationale, the CRA will take up the matter with the involved nodal workplace/middleman for modification in checking account particulars of the subscriber by means of a set course of, it mentioned.
“CRA shall send communications to the subscriber on his/her mobile number and e-mail on the penny drop failure and advising him/her to contact his/her nodal officer or POP as the case may be,” PFRDA mentioned.
The regulator has requested the CRAs to finish the event of performance for penny drop verification and required system-stage utilities inside a month. There have been cases when the subscribers’ withdrawal quantity couldn’t be credited to their financial institution accounts.
In case of unsuccessful transactions, the quantities meant for the subscribers usually are not credited into the checking account and stay with Trustee Bank until right particulars are obtained from the subscriber.
(With PTI inputs)
