PFRDA Extends Online Exit Process For NPS Subscribers Under Government Sector

In addition to the current physical form of withdrawal, the Pension Fund Regulatory and Development Authority (PFRDA) has introduced the online and paperless procedure of exit to Government Sector Subscribers. As part of strengthened proper diligence in the interest of subscribers, the online exit will be linked with Instant Bank Account Verification, as per existing rules. Employees of Central/State Government Autonomous Bodies who are registered by the National Pension System (NPS) will also be allowed to use the facility.

PFRDA has unveiled in a release that "Subscribers are encouraged to utilize the option of online exit which ensures timely process of exit and the seamless issue of annuity by Annuity Service Providers (ASP). Nodal Officers of the Government Sector need to play a larger role to educate their employees about the process of online exit which not only benefits subscribers but also the nodal officers by freeing them from handling paper-based documents and dispatching those papers to the associated CRA for record-keeping."

Subscribers who are unable to commence an online exit application owing to technical difficulties will be supported by DDOs in digitising and facilitating their exits by uploading documents in the CRA system on their behalf, according to the new extension of the online exit rule.

By logging into the CRA system, a government sector subscriber can submit an online exit application. The necessary information concerning e-Sign/OTP authentication, application permission by Nodal Office, and so on will be provided to the subscriber at the time of application commencement. The subscriber can choose the fund allocation % for the lump sum/annuity, as well as the annuity specifics, nomination details, and other options. The KYC/duly signed withdrawal documents will be scanned and uploaded by the subscriber to authorize the application process using OTP Authentication process or e-Sign process using Aadhaar.

The exit application, along with scanned documents and the appropriate declaration i.e. OTP Authentication/e-Sign, will be made accessible in the related nodal officers' CRA login once the subscriber successfully submits an electronic application. On the availability of scanned documents, the Nodal Office will verify and authorise the request which will be processed in the CRA system after it has been approved by a Nodal Officer. Subscribers in the government sector will be able to select for continuation or deferral at the time of exit via an online option. DDOs will facilitate subscribers who are unable to commence an online exit application with digitization and exit facilitation by uploading documents into the CRA system.