On Wednesday, pension fund regulator PFRDA informed that it has allowed Aadhaar-based paperless KYC process for onboarding of new subscribers under the National Pension System (NPS).
The Pension Fund Regulatory and Development Authority of India (PFRDA) said it has permitted e- NPS/Points of Presence facilities to use offline Aadhaar for prospective subscribers with their consent for opening NPS accounts.
The Aadhaar-based offline paperless KYC verification will eliminate the need to provide a physical copy of the 12-digit ID, which will make it convenient for new customers to join the scheme at a time when social distancing norms are to be followed.
An applicant can now download the password-protected Aadhaar XML file by accessing the UIDAI portal through eNPS and share the same for his KYC. The facility can also be availed for opening NPS accounts through Points of Presence (POP), it said.
In this process, the KYC details are in machine-readable XML format, which is digitally signed by UIDAI allowing eNPS/ POPs to verify the demographic contents of the file and certify the same to be authentic.
The identity and address of the applicant can be verified in the process.
'The process enables immediate activation of NPS account due to instant KYC verification and also facilitates the immediate deposit of NPS contribution by the subscriber,' PFRDA said.