NPS rules: 5 changes that subscribers should know about

Some changes have been brought in the National Pension Scheme (NPS) by the Pension Fund Regulatory Authority (PFRDA). These changes will benefit millions of NPS subscribers. Some of the changes brought in the last few weeks include reducing the time taken for processing various transactions and modifying the rules related to credit card usage for NPS tier-II accounts. Anyone interested in opening an NPS account must take note of the new rules before taking any decision. From modification of the e-nomination process for government and private employees to the trail commission payment for account holders, here is all you need to know about the new NPS regulations:

Processing time:

The processing time has been halved by the PFRDA for withdrawal of funds. The authority has declared that the processing time has been changed to T+2 working/settlement days from T+4, where T means the day of authorisation of withdrawal request by the Nodal office/Subscriber/ Points of Presence (PoP). This will lead to faster withdrawal of funds.

E-nomination process:

The PFRDA has made certain changes to the e-nomination facility for government and corporate sector NPS subscribers. Under the new rules, if the nodal officer does not act on a nomination request within 30 days, it will automatically get approved in the CRA (Central Recordkeeping Agency) system. The system comes into effect from 1 October this year.

Trail commission payments through POPs:

The NPS has allowed trail commission payments through POPs from this month. The scheme also announced that the trail commission payments made through D-Remit will be similar to those made by eNPS. “The trail commission to PoPs for D-Remit contributions of the associated subscribers shall be @ 0.20 per cent of the contribution amount (minimum Rs 15 and maximum Rs 10,000) similar to eNPS. The applicable charges would be recovered by unit deduction on periodical basis”, the PFRDA stated on its official website.

Credit card payment facility not allowed for NPS Tier-II subscribers:

The PFRDA had earlier stated that the credit card payment facility for NPS Tier-II account holders will be closed down. Subscribers can make their NPS Tier-II account payment online either through net banking or debit card on the website or mobile app. For offline payments, account holders need to contact their nodal officer/POP.

Digital life certificate submission:

NPS account holders can breathe a sigh of relief as far as submission of life certificate is concerned. The Insurance Regulatory and Development Authority of India (IRDAI) has advised insurers to adopt Aadhaar based authentication, such as the Centre’s Jeevan Pramaan initiative, for verification of life certificates. The IDDAI has also relaxed norms for submitting a separate form to purchase an annuity plan with the proceeds of the NPS funds.

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