PFRDA simplifies NPS a/c opening process

Source: The Hindu Business Line, Jan 01, 2017

New Delhi: Simplifying the process, the Pension Fund Regulatory and Development Authority has dispensed with the requirement of submission of physical application form for NPS account opening if done through Aadhaar verification and e-signature.

PFRDA, in October 2013, had allowed acceptance of e-KYC as a valid process for Know Your Customer verification in addition to the other permitted documents of identity and address.

“It has now been decided…that in case the Point-of-Presence (PoPs) integrate the e-Sign…within their applications for online account opening for NPS, the requirement of sending the physical application form to the central record keeping Agency by the subscribers/PoPs shall be dispensed with,” it said in a circular.

National Pension System (NPS) is the government’s flagship social security programme. As on November 30, there were about 1.4 crore subscribers under NPS with over Rs 1.61 lakh crore asset under management.

PFRDA further said that PoPs would be allowed to charge a maximum of Rs 5 plus service tax and cess per application for the e-signature service being provided to the subscribers.

“With the application of the e-Sign facility, a large number of subscribers having Aadhaar number will be able to open NPS account without any physical document requirement,” the regulator said.

As per the rule, the electronic signatures facilitated through e-Sign — Online Electronic Signature Service — is legally valid. E-authentication technique using Aadhaar e-KYC services is also a legally valid authentication.

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