Retirement NPS account opening becomes paperless with Aadhaar based e-kyc

NPS account opening becomes paperless with Aadhaar based e-kyc

PRFDA does away with the requirement of sending physical applications for NPS accounts opened with Aadhaar based e-kyc.
Team Cafemutual Dec 23, 2016

In a bid to make NPS account opening completely paperless, Pension Fund Regulatory and Development Authority (PFRDA) has done away with the requirement of submitting physical applications forms for subscribers who open their NPS accounts through Aadhaar based e-kyc.

“With the application of eSign facility, a large number of subscribers having Aadhaar number will be able to open NPS account without any physical document requirement,” said a press release issued by PFRDA.

The point of presence (POPs) have to provide electronic signature service for online account opening. If POPs integrate this facility in their online application forms, they don’t need to send the physical applications to the central record keeping agency. However, they will still need to send the KYC details of investors to government’s central KYC registry portal.

The POPs will be incentivised for providing this facility. PFRDA has allowed POPs to charge Rs. 5 plus service tax and cess for facilitating this service to NPS subscribers.

In order to expand the reach of NPS, PFRDA has allowed IFAs to sell NPS by passing an NISM-Series-XVII: Retirement Adviser Certification Examination. 

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