The National Pension System (NPS) was launched by the Central Government in the year 2004. Its purpose was to connect government employees who were outside the purview of old pension schemes. The government also opened it to private-sector employees in 2009. Now an important change has happened in this plan.
What Has Developed?
- The pension fund regulator PFRDA has originated a ‘one-time password’ facility to connect with NPS. The regulator has taken this step to make opening and making NPS account more accessible.
- Under this, the bondholders can now open their NPS account through OTP (One Time Password).
- In this, if the customers of the bank registered for POP (Point of Presence) want to open an NPS account through the Internet banking of the concerned bank, they can avail this facility by getting the OTP on the registered mobile number.
Will Have To Report About KYC
- OTP and e-mail received on the mobile number of the concerned customer can be used to open an NPS account for any paper document through non-internet banking digital mechanism ie POP.
- After the end of KYC (Know Your Customer), the POP will have to present information/data about NPS shareholders to the Central Record Keeping Agencies (CRA) along with the customer’s photo and signature model.
They have to tell in a script that the KYC guidelines/rules have been followed. The grant fund regulator said that POP and CARA have been asked to provide certain OTP based verification services. This will make it more comfortable for the sharers to open the account and at the same period, the returns are also likely to be optimal by paying the contribution amount immediately.