There are preparations for major changes in the rules of the National Pension Scheme (NPS) soon. Withdrawal of funds from NPS account can be increased from 60 per cent to 100 per cent through Systematic Withdrawal Facility (SLW). Pension Fund Regulator (PFRDA) Chairman Dr. Deepak Mohanty has indicated this in the recently organized NPS Thinking Camp.

It is noteworthy that PFRDA has recently launched systematic withdrawal facility for NPS members. Under this, members can withdraw 60 percent of the maturity amount received after retirement or at the age of 60 years on monthly/quarterly/half yearly or yearly basis.

This facility is available starting from the date of retirement till the age of 75 years. Earlier this fund was allowed to be withdrawn on annual basis or in lump sum.

What will change for subscribers: NPS subscribers in SLW facility are exempted from purchasing annuity/pension plan till the age of 75 years. That means members can keep the entire money in the NPS account and withdraw it at regular intervals.

If the new proposal of PFRDA is implemented then members will be allowed to withdraw 100 percent amount from SLW. The pension regulator says that with this the money will remain under the NPS fund for a long time and the members will continue to enjoy the benefits of compound interest. They will like this option more.

Request has to be made like this: NPS subscribers will have to request once through online or offline mode to start SLW facility. Customers will have to specify the start and end date of this facility. They also have to tell how much amount they want at what interval. The remaining amount after each payment will remain invested in NPS. Returns will continue to be received on this remaining amount.

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If you are also planning for retirement and want to open an NPS account, then there is good news for you. The Pension Fund Regulatory and Development Authority (PFRDA) has changed the rules for opening an NPS account. PFRDA said that now National Pension System (NPS) account can also be opened through Central KYC (CKYC).

Information given by PFRDA

According to the information given by PFRDA, the entire process through CKYC will be paperless. Actually, KYC is required to be done only once in CKYC. Thereafter, post CKYC account opening in financial services institutions becomes easy as it does not require the investors to submit documents for KYC.

NPS account opening made easy

According to a report in Financial Express, ‘After Central KYC (CKYC), you are free from filling KYC forms again and again in your financial institution. Just some time back, the central government has started this facility. CKYC is managed by the Central Registry of Securitization Asset Reconstruction and Security Interest of India ie CERSAI. Under this, you will get your complete KYC information in just one number.

How to open NPS account with CKYC

1. For this you first go to the registration page of http://www.camsnps.com and fill the information asked there.
2. Now click on Open New Account.
3. Now OTP will come on your given mobile, enter it at the specified place.
4. If the PAN, date of birth and email/mobile number match, your KYC details will appear on the screen.
5. Now click on ‘Yes’ to proceed with the details available in CKYC.
6. Now click on applicant type and status.
7. Now here the name of the subscribers will be populated against the name field as available in CKYC. The date of birth given in CKYC will also be visible. Apart from this, father’s name, mother’s name and gender etc. will also be seen. These can also be edited.
8. Let us tell you that the address of the customer available in CKYC will also be automatically filled in front of the address field.
9. After entering all the requested data, click on save details. By doing this, the acknowledgment number will be generated.
10. This acknowledgment number will be sent to the subscriber through SMS and email.
11. The photo of the subscriber available in CKYC will appear on the screen and the signature will also be auto-populated.

In this way you can easily open your NPS account sitting at home.

The post NPS Latest Update: Big change in the rule of opening NPS account, know how the account will be opened now, here’s the way first appeared on Rightsofemployees.com.

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.

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