You will have to pay a penalty if you delay service requests of your NPS clients. PFRDA has imposed a penalty on retirement advisors if they delay responding to service requests of their NPS clients.
In fact, PFRDA has asked retirement advisors (RAs) and Point of Presence – Service Providers (banks) to compensate their NPS subscribers.
Service related concerns include KYC verification, failure to transfer subscribers’ money to NPS account, uploading subscribers’ details on central record-keeping agency (CRA) portal and so on.
The pension fund regulator will levy a penalty of Rs.10 or the bank rate + 2% of the contribution amount on POP-SPs and RAs for such delays in service requests with effect from October 1, 2017.
Through a circular issued recently, PFRDA said, “In case of any delay or violation in the service standards in respect of prospective/ existing NPS subscriber, the POP including POP-SP or POP –SE as the case may be, shall be liable to compensate the loss to the subscriber.”
The penalty fee will be credited to the subscribers’ permanent retirement account number (PRAN), says PFRDA.
