In order to reduce the turnaround time of doing KYC, the pension fund regulator PFRDA has permitted the use of Aadhaar as a valid proof for know your customer (KYC) to invest in NPS. Investors can now subscribe to NPS online by furnishing their Aadhaar number.
In a press release, PFRDA said, “Enabling eAadhaar in addition to PAN and bank account based KYC for the eNPS platform can reduce the cost and time of operation and ensure wider coverage to the citizens of India under the old age income security schemes. Hence, PFRDA has modified the eNPS functionality to accept PAN and bank account or eAadhaar as the KYC document for online registration of subscribers under NPS.”
All investors need to do is key in the Aadhaar number on eNPS, the online portal of PFRDA. The system will send a onetime password to the registered phone number and email id of Aadhaar card holder. After keying in this OTP, investor needs to select a pension fund manager and a scheme and invest a minimum of Rs.500. Subsequently, a form will be generated with Permanent Retirement Account Number (PRAN). Subscribers are required to paste photograph, affix signature and submit the physical form to CRA within a specified period of time while continuing contributing online.
Further the press release said, “Through this facility, it is expected that the subscriber will have multiple advantages like seamless onboarding experience where he/she need not visit a Point of Presence and can register from anywhere through an internet connection, contribution with minimum cost of transaction and reduction in errors resulting from various manual activities.”
