New NPS rules: 7 major NPS changes in last 6 months
The CRAs that are registered with the Pension Fund Regulatory and Development Authority (PFRDA) continuously enhance their systems to meet the needs of the Nation Pension System (NPS) and Atal Pension Yojana (APY) architecture.Here are the 7 important NPS functions recently announced to enhance user experience and operational simplicity. The functionality that CRAs created in Quarters Ill and IV of FY 2023–24 are mentioned below, as mentioned in a Pension Fund Regulatory and Development Authority dated June 14, 2024.
Bank verification with name matching has to be successful for processing the Exit / Withdrawal requests and also for modifying the subscriber's bank account details.
Penny Drop (mandatory name verification) implemented in case of NPS Lite for the following:
Withdrawal on death, Partial Withdrawal
Subscribers are now allowed to opt for multiple PF option under Active Choice investment after three months from the date of NPS account opening.
(SLW) implemented at the time of Superannuation. On Superannuation, the option has been made available to redeem NPS corpus (only lumpsum portion) on periodic intervals. Subscriber can select amount which he/she wants to receive on periodic basis or Age upto which one wants to receive amount on periodic basis
Subscribers through their login can check the verification status of their Bank account before placing exit/withdrawal request. The option has been enabled in Subscriber's login to verify existing bank details
through penny drop.
Introduction of separate option to update following fields along with mandatory document upload:
1. Name Change
2. Date of Joining
3. Date of Birth
4. Date of Retirement.
" It is mandatory to select & upload supporting documents while updating Name, Date of Joining, Date of Birth and Date of Retirement of the Subscriber."
This will ensure that correct details updated in CRA records with valid documents.
The Online screen-based facility implemented for PoPs for processing of Death withdrawal requests along with bank details verification through penny drop (with mandatory name verification).
