NEW DELHI: With prompt account verification course of, subscribers will now get well timed credit score whereas exiting or withdrawing cash from their NPS account.
The Pension Fund Regulatory and Development Authority (PFRDA) has launched a penny drop technique that can assist guarantee well timed credit score of the quantity to the checking account of the eligible subscriber.
“Through ‘penny drop’ process, Central Record Keeping Agencies (CRAs) will check the active status of savings bank account (SBA) and match the subscribers’ name in SBA number with the name in PRAN (Permanent Retirement Account Number) or as per the documents succumbed. The validity of account is verified by making a ‘test transaction’ by penny dropping a specified amount into the beneficiary’s SBA and matching the name based on the penny drop response,” the pension regulator mentioned in a press assertion.
‘Penny drop’ can occur on the time of processing of the exit or withdrawal request made by the subscriber. The response of ‘success’ or ‘failure’ will then be delivered by the service supplier based mostly on validation of the financial savings checking account quantity identify verify as per CRA accounts/information, it mentioned.
If the checking account particulars and different particulars, as offered by the subscriber, don’t match, then an alternate account quantity or extra supporting paperwork need to be submitted by the subscriber. So, if the penny drop fails on the time of processing, the nodal officer or PoP (Points of Presence) or subscribers will probably be informed to right the SBA quantity and once more submit the appliance type/paperwork in order that their withdrawal request will be processed in a well timed method.
CRAs may use the ‘penny drop’ technique for registration of entities wherever doable, it added.
How it really works
Currently, whereas exiting (superannuation, untimely or resulting from dying) or partial withdrawal from the NPS, subscribers or PoPs initiat withdrawal request by mentioning the required particulars, together with the SBA quantity and IFSC code into which the withdrawal proceeds are to be credited. Once the withdrawal course of is confirmed and authorised within the CRA system, proceeds are transferred to the subscriber’s financial savings account by electronically by the trustee financial institution.
There are instances when the subscribers’ withdrawal quantity couldn’t be deposited into the SBA of the subscriber due to causes resembling invalid account quantity, unsuitable IFSC code, identify mismatch, dormant account, account closed, the account doesn’t exist, the account is inactive, the account is transferred, credit score freeze account kind mismatch, amongst others.
The cash that might not be credited into the subscribers’ SBA remained with Trustee Bank until the right account quantity was obtained. This will be now overcome by utilizing Instant Bank Account Verification.Instant Bank Account Verification by ‘penny drop’ must be adopted by CRAs by integrating their IT system and exit framework with the Fin-tech service suppliers, mentioned the Pfrda press launch.
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