The provisions will apply throughout the NPS, the Atal Pension Yojana (APY), and NPS Lite for all sorts of exits/withdrawals in addition to for modification within the subscribers’ checking account particulars. File
| Photo Credit: The Hindu
The Pension Fund Regulatory and Development Authority (PFRDA) has made ‘penny drop’ verification mandatory for the withdrawal of funds by subscribers of the National Pension System (NPS) for the well timed switch of cash.
Through the ‘penny drop’ course of, Central Recordkeeping Agencies (CRA) test the lively standing of the financial savings checking account and match the identify within the checking account quantity with the identify within the PRAN (Permanent Retirement Account Number), or based on the paperwork submitted. The provisions will apply throughout the NPS, the Atal Pension Yojana (APY), and NPS Lite for all sorts of exits/withdrawals in addition to for modification within the subscribers’ checking account particulars.
The validity of the account is verified by making a ‘take a look at transaction’ by dropping a small quantity into the beneficiary’s checking account and matching the identify primarily based 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,” a current PFRDA round mentioned.
It additionally mentioned that “no request” for exit/withdrawal, and modification of the subscriber’s checking account particulars might be allowed in case of failure of penny drop verification by the CRA.
In case of penny drop failure, regardless of the explanation, the CRA will take up the matter with the involved nodal workplace/middleman for modification in checking account particulars of the subscriber by 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,” the PFRDA mentioned.
The regulator has requested the CRAs to finish the event of performance for penny drop verification and required system-level utilities inside a month. There have been situations 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 aren’t credited into the checking account and stay with the trustee financial institution until right particulars are obtained from the subscriber.
