The Pension Fund Regulatory and Development Authority (PFRDA) has announced the advent of online, paperless exit or withdrawal process for the beneficiaries of the government sector, in addition to the existing physical mode of exiting the NPS account. This comes as good news for the subscribers from the government sectors, as earlier only corporate or non-government sectors used to have the option to exit online.
PFRDA is encouraging the government subscribers to utilise this option since it will smoothen the process of exit and make it more efficient. Moreover, with the prevalence of this method of discontinuing the account, the transfer of annuity-by-annuity service providers (ASP) becomes seamless.
“The online exit would commence with an instant bank account verification according to the existing guidelines complying with subscribers’ interest. The facility can also be availed by the employees of autonomous bodies of central or state government subscribers with an NPS account,” said a press release.
PFRDA also stressed on the need for government nodal officers to realise their role in the shift and do the needful diligently. Once the online medium of exiting gains momentum, it will not only benefit the subscribers but also the nodal officers since they will be relieved of the strenuous documentations.
“The process of online exit will benefit the nodal officers as they will be exempted from paper-based documents and can dispatch the documents to the associated CRA for record-keeping easily,” the release added.
The subscriber has to log in to the CRA system and submit an online exit application to initiate the process of withdrawal. As the application commences further, the subscriber will come across OTP authentication, issuance of permission from the Nodal officers, etc., along the course.
Once the procedure is completed on the subscriber’s end, all the documents, along with the e-application, will be transferred to the nodal officers’ CRA account. Here, the documents will be verified, approved, and passed on by the officer without having to deal with papers. The subscribers, along the process of exiting, will have an option for continuation or deferral of the NPS account.
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Source: News18