National Pension Scheme: The Pension Fund Regulatory and Development Authority (PFRDA) has recently implemented important changes to the National Pension Scheme (NPS) rules. These changes are designed to streamline the withdrawal and exit process, making sure that customers receive their funds promptly and enhancing security.
Instant Bank Account Verification
PFRDA has made it mandatory for instant bank account verification when withdrawing money or exiting the NPS. This ensures that withdrawal amounts are deposited into customers’ accounts without delays.
The Penny-Drop Method
To verify customers’ bank accounts, PFRDA employs the penny-drop method. This method involves name matching, withdrawal, and withdrawal requests as essential components of the verification process. Additionally, changing customers’ bank account details requires a successful penny drop verification.
Consequences of Penny Drop Failure
If the Central Recordkeeping Agency (CRA) fails to verify the penny drop, any request for NPS exit, money withdrawal, or changes to the customer’s bank account data will not be accepted.
In the event of a penny drop failure, a prescribed process will be followed with the concerned nodal office to address bank account detail changes. Customers will also be promptly informed of the CRA Penny Drop failure through their mobile number and email.
NPS Withdrawal Guidelines
The NPS exit rules state that if the total amount deposited by the subscriber in NPS and interest is less than Rs 5 lakh, then he can withdraw the entire amount together. But, if it exceeds this, 40 percent of the amount will be kept for pension and the remaining 60 percent can be withdrawn together.
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