To bolster the digital security of the National Pension System (NPS), the Pension Fund Regulatory and Development Authority (PFRDA) has introduced NPS’s 2-Factor Authentication to access the Central Recordkeeping Agency (CRA) portals.

PFRDA’s February 20 circular emphasized enhanced security for NPS. It said it added Aadhaar-based authentication for security while logging in to the CRA system.

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Currently, the users access details by logging in to the NPS CRA portal with an ID and password. NPS’s 2-Factor Authentication will be an extra layer of security.

What Is A Two-Factor Authentication?

It is an additional layer of security requiring users to key in two unique factors for authentication. It could be a combination of something a user knows, like a password, and something the user has, like a mobile device, to receive OTPs.

The two-step process is more secure than a single-factor authentication. For example, if the criminal hacks the password, they cannot move to the next level to access the data.

Digital platforms can use different combinations for the two-factor authentication, like OTP, secret questions, and Aadhaar details, to protect users’ credentials and sensitive data. Gmail also uses a two-factor verification for users’ logging in.

Benefits Of Two-Factor Authentication In NPS

This Aadhaar-based authentication with a login ID and password will boost security to the CRA portals. The circular said: “The integration of Aadhaar-based login authentication is to fortify the overall authentication and login framework. This initiative is designed to create a secure environment for all NPS activities carried out by government offices and autonomous bodies.”

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When Will It Be Implemented?

The two-factor verification will come into force on April 1, 2024. PFRDA operates via three CRAs: Protean e-Governance Technologies CRA (PCRA), KFin Technologies CRA (KCRA), and Computer Age Management Services CRA (CCRA). The CRAs will need to issue a detailed standard operating procedure (SOP) regarding the two-factor process to the government nodal offices and sensitise officers about the process to ensure a smooth transition to the new rule.