The CRAs of NPS and APY schemes launched over two dozen functionalities in the last two quarters of FY2023-24 to facilitate investing, improve security, and comply with rules.
CRA Features
The central recordkeeping agencies (CRAs) of the National Pension System (NPS) and the Atal Pension Yojana (APY) schemes have introduced over a dozen new functionalities in the last two quarters of FY2023-24 to improve the user experience, operational ease and security, the Pension Fund Regulatory and Development Authority (PFRDA) said in a circular last week.
Its June 14 circular said the changes are “aimed at improving user experience and operational ease.” PFRDA currently has three CRAs for NPS and APY: CAMS, APY, and Protean CRA.
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Also Read: NPS Pension Scheme: How To Apply And What Documents You Will Need
Here are some functionalities added to NPS and APY in the last two quarters:
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Funds lying in a trustee bank account for over 30 days due to a mismatch in bank details will be reinvested in a permanent account number (PRAN) as per the subscriber’s choice. The MWM functionality or “my withdrawal module” will allow subscribers to claim the amount after providing the necessary details. This process will enable subscribers to earn market-linked returns even on “returned” funds in the account.
CAMS has made the penny drop facility mandatory for verifying subscribers’ bank details for withdrawal requests or modifying bank details.
The point of presence (POPs) can now take printouts of subscribers’ payment receipts. Subscribers can access their payment details with ease. PoPs can also download subscribers’ Know-Your-Customer (KYC) information for account opening and KYC updation.
Subscribers can verify their bank accounts using the penny drop facility before requesting a withdrawal or exit.
To enhance the security of the NPS account, it will permit linking only one mobile number for each PRAN account.
Subscribers can now port their accounts between CAMS and K-Fintech CRAs as they prefer.
The subscribers must apply for partial withdrawals only via their nodal office or PoPs.
To enhance their convenience, PoPs are provided with the option to download the common subscriber registration form (CSRF).
Subscribers can change or select the pension fund of their choice in NPS. They can also choose multiple funds after three months from account opening in the active investment mode, applicable to Tier 1 and Tier 2 accounts.
It has added the option of an anti-money laundering (AML) declaration for subscribers before they select the payment mode or the payment gateway on eNPS.
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K-Fin will also allow the reinvestment of returned funds and the use of the MWM facility to reclaim the money, as in CAMS.
K-Fin has upgraded the application programming interface (API) for annuity request confirmation, reverse information flow, and annuity KYC documents for subscribers provided by annuity service providers (ASPs).
To improve security and due diligence, the penny drop functionality has been introduced to verify bank details for processing withdrawal requests.
K-Fin has introduced a PoP change option for subscribers on their login page. After the request is raised, it will be forwarded to the target PoP for authorisation before mapping the PRAN to the PoP. Subscribers also have the option to change their marital and gender status online by submitting the physical request to the respective nodal office.
It has made it mandatory for subscribers to upload necessary documents to modify records.
Like in CAMS, subscribers tagged to the government or a PoP are now required to submit their partial withdrawal requests for authorisation through their nodal offices or PoPs.
It has also implemented inter-CRA portability for subscribers across CRAs. The CRA system has tools to verify subscribers’ mobile numbers, email IDs, or bank accounts. It has also implemented an Aadhaar-based authentication process to access the CRA system.
It has also introduced the option to choose multiple pension funds under the active choice mode after three months of account opening.
Protean CRA has also introduced new functionalities, such as bank verification, for modifying customer details and withdrawal requests.
It has upgraded its annuity calculator with features such as filtering ASPs to fetch quotes based on name or value and viewing selected ASPs’ quotes.
Protean has introduced an online screen-based facility for PoPs for death withdrawal processing and to verify bank details through the penny drop facility for faster claim processing. Further, to facilitate document uploading online, it increased the size limit from 2 MB to 5 MB.
The updated facility allows the nodal office to provide updated bank details of the subscribers’ salary accounts through bulk processing.
Penny drop has been implemented in NPS Lite for partial and death withdrawals. It has mandated a mobile number for withdrawal or exit request processing.
It has modified the eNPS portal to introduce eSign during scheme registration, penny drop verification, and LC 50 (an auto-choice option) as the default scheme option.
Like other CRAs, subscribers can opt for more than one pension fund after three months of opening an NPS account.
Aadhaar-based authentication has been implemented for nodal offices, and the password format has been changed for NPS Lite. It will now contain at least 8 to 16 unique characters.
It added the systematic lumpsum withdrawal option in NPS-regular to provide subscribers with flexibility in cash flow.
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Subscribers can check the bank verification status online by logging into their account before requesting a withdrawal.
For the new NPS accounts, it has removed the Extended Internal Rate of Return (XIRR) option from the transaction statement and introduced ‘Return on Investment’ since inception.
It has also added subscribers’ Foreign Account Tax Compliance Act (FATCA) details for CRAs and subscribers.
In the all-citizen NPS module, a claim ID is created when a subscriber initiates a withdrawal request. This is to improve convenience for subscribers.
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