The Pension Fund Regulatory and Development Authority (PFRDA) on Thursday made it mandatory to upload withdrawal or KYC documents to make it easier for subscribers to take benefit of their annuity or withdraw from the National Pension Scheme (NPS).

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In a press release, PFRDA said it has, in regulatory collaboration with the Insurance Regulatory and Development Authority (IRDAI), has simplified the process of "buying annuity wherein Annuity Service Providers (ASPs) shall use the NPS withdrawal form submitted at the time of exit by the subscribers at nodal officers/POPs for issuing Annuity".

ASPs are Life Insurance Companies regulated by IRDAI and empanelled with PFRDA to serve NPS Subscribers and secure their old age with a regular stream of periodical income.

PFRDA said this common proposal for exit from NPS and for buying annuity from ASP facilitates parallel processing of the lump sum component and annuity due to which "the time taken by ASPs while issuing Annuity Policies is significantly reduced which results in faster subscriber servicing and timely annuity issuance".

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PFRDA said the mandatory upload of documents will come into effect on April 1, 2023. It further said the subscribers and the associated nodal officers/POPs/corporates need to ensure that the following documents uploaded in the respective CRA user interface are to be legible:

NPS Exit/Withdrawal Form

Proof of Identity and address as specified in the withdrawal form

Bank account proof

Copy of PRAN card

PFRDA said the process flow is further illustrated in an annexure for ready reference of stakeholders. "All nodal offices/POPs/Corporate can educate the associated subscribers about the importance of upload of documents and perform suitable quality checks about the legibility of those documents," it added.

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First Published:Feb 23, 2023 6:35 PM IST