The Pension Fund Regulatory and Development Authority (PFRDA) has stated that the people can start their new NPS accounts through a one-time password (OTP) based authentication process. In order to extend the reach of the NPS, the pension regulator authority has embraced some steps. The PFRDA has previously allowed the customers to open an online NPS account through the e-signature process. It has also authorized the Aadhaar-based offline paperless KYC process for fresh customers while opening an NPS account. This process facilitates instant activation of the NPS account through immediate KYC verification.
OTP-bases authentication
The clients of those institutions registered as POPs (Points of Presence) who want to open an NPS account through online banking of the respective banks, can start NPS accounts using OTP generated to their recorded mobile number. Moreover for the opening of NPS accounts through non-internet banking digital mode, through POPs that are banks as well as non-bank POPs, an OTP generated to their registered mobile number and email can be applied for opening a new NPS account.
As the KYC process is concluded, the POPs have to offer the NPS subscriber’s date to the Central Record Keeping Agencies (CRAs) accompanying a photo and image of signature with an undertaking that the KYC/AML guidelines. These rules have been rightfully adhered to.
POPs and CRAs have been proposed by PFRDA to give the expected functionality of OTP-based authentication. PFRDA manages over 3.60 crore people under National Pension System with an absolute Asset under Management (AUM) of over Rs. 4.55 lakh crore, out of the total subscribers, 2.25 crore subscribers are within Atal Pension Yojana (APY) itself.
The onset of novel coronavirus pandemic has led the Central government to announce that the taxpayers have a window till July 31 to finish their tax-saving exercise for the 2019-20 calendar. The tax-saving investment prospect includes National Pension Scheme (NPS) and other Section 80C investments like PPF and NSC
