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Open NPS Account via OTP; Read Important Details from PFRDA

Tooba Maher
Tooba Maher

Now you can open NPS account through e- signature. Pension Fund Regulatory and Development Authority (PFRDA) have enabled the opening of online NPS Account in a paperless manner by e- signature. To simplify the opening up of NPS Account, the subscribers are now permitted to do it through One Time Password (OTP).

In this method, the customers of banks (registered as POPs- Points of Presence), who want to open NPS Account through internet banking of the respective banks, can now open their NPS Accounts using OTP received on their registered mobile number. But, for the opening of NPS Accounts through non-internet banking digital mode, through POPs (Banks as well as Non - Bank POPs), OTP received on their registered mobile number & email can be used for paperless NPS Account opening.

Customers must note that post completion of KYC, POPs have to submit the NPS Subscriber's data or information to Central Record Keeping Agencies (CRAs) along with his photo & image of signature with an undertaking that the KYC or AML guidelines/rules have been duly complied with.

POPs and CRAs have been advised by PFRDA to give the required functionality of OTP based authentication. This method will ensure seamless account opening, end to end digitization and also optimizing of investment returns by deposit of contributions in a quicker way.

PFRDA stated, " It is mandated to promote old age income security i.e. pension in India & protecting the interests of subscribers of pension systems and schemes. PFRDA has taken series of steps to ensure ease of NPS onboarding through various convenient modes, as part of its developmental mandate & to increase the outreach of NPS."

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