Pension regulator PFRDA has taken the next big step to ensure that NPS subscribers get timely payment of annuity income, reported Business Line.
From April 1, as many as four specified documents (basically withdrawal and KYC documents) would have to be mandatorily digitally uploaded in the user interface of the central record keeping agency (CRA).
From the current physical mode, where documents are usually delivered to nodal offices and PoPs, the entire process will now flow through electronic mode.
This would make it easy for the life insurance companies (who are acting as Annuity Service Providers) to process the payments faster, sources said.
A NPS subscriber would basically have to upload the documents by themselves (doityourself) and authenticate them digitally through Aadhaar.
The four documents are NPS exit/ withdrawal form; proof of identity and address as specified in the withdrawal form; bank account proof and copy of PRAN card.
Proof of Identity and address as specified in the Withdrawal form; Bank account Proof and Copy of PRAN card.
Already PFRDA has simplified the process of buying annuity wherein Annuity Service Providers (ASPs) shall use the NPS withdrawal form submitted at the time of exit by the subscribers at nodal officers/ POPs for issuing annuity.
The detailed guidelines and benefits of parallel processing was issued on November 14, 2022.
ASPs are life insurance companies regulated by IRDAI and empanelled with PFRDA to serve NPS subscribers and secure their old age with regular stream of periodical income.
Currently, the NPS gives returns annually, based on prevailing market conditions. PFRDA is now looking to have a separate scheme that can offer a guaranteed minimum rate of return to NPS subscribers, especially those who are risk averse.