A major change is being made in the e-nomination process for National Pension System (NPS) account holders in the government and corporate sector. The Pension Fund Regulatory and Development Authority (PFRDA) has announced major changes in this process, which will greatly facilitate the NPS account holders.
PFRDA says that existing NPS account holders can now make necessary changes in PRAN by logging in with their ID password to complete the e-nomination process. Apart from this, the subscriber can also submit the application for change in his nomination physically, which will have to be given to the concerned Nodal Officer or Point of Presence (POPs).
PFRDA has said in the circular issued on August 25 that if the nodal office does not work on the application of nomination within 30 days, then it will be approved for the CRA system. The revised process of e-nomination will come into effect from October 1, 2022.
PFRDA has said that the e-nomination service for NPS subscribers is available only after the notification issued on 3rd September, 2020. To change the nomination in the PRAN of such account holders of government or corporate sector, it is necessary to get approval from the concerned nodal officer or corporate. It is seen that till now a large number of e-nomination requests are pending. These requests are awaiting approval from the nodal office and corporate.
If not a decision in 30 days… The Pension Fund Regulator has clearly said that a major change is being made in the rules of the nomination process keeping in view the interests of the subscriber. Under this, once the subscriber has started the nomination request, the nodal office should either accept it or reject it within 30 days. If no action is taken by the Nodal Office within this period, the application will be accepted in the CRA system. The new rule will also work for existing account holders, whose application is currently pending at the nodal office.
How many nominees can be made According to the guidelines of PFRDA, at the time of opening the NPS account, you are asked for the information of the nominee, which is mandatory to be filled. A maximum of 3 nominees can be added for Tier 1 and Tier 2 accounts of NPS. After the death of the account holder, the amount is allotted to the nominee only. The account holder also decides which nominee will get what percentage of the amount, which should not exceed 100% in the aggregate.
PFRDA says in the nomination that if you have made the nomination at the time of opening the NPS account and at the time of PRAN registration, then you will not have to pay any fee. But if you have submitted nomination request later, it will be treated as service and you will be charged Rs 20 along with service tax.
