Your Mutual Fund Or Equity KYC Will Now Be Valid For NPS Registration

The PFRDA (Pension Fund Regulatory and Development Authority) has allowed the interoperability of KYC (Know Your Customer) done for mutual funds or equity investments with NPS (National Pension Scheme).

To make registrations for NPS, the regulator has permitted the NPS Points of Presence (PoPs) to use KYC details from any relevant KRA (KYC Registration Agency), which means KYC completed for mutual fund or equity investment registrations should suffice. This will also cut the processing time.

Most banks are PoPs for NPS registrations, which is a government-backed retirement planning scheme with tax benefits. It comes under the purview of PFRDA.

Ideally, KYC verification under NPS is done by the selected Bank / non-Bank POP with a onetime fee as KYC authentication charges up to a maximum of Rs. 125 (plus applicable taxes). You could also register at a Central Recordkeeping Agency (CRA) like NSDL or Karvy, however, the benefit of interoperability of existing KYC from mutual funds or equity will not be available.

The government has simplified the registration process for NPS online with the e-NPS portal. If you have a bank account with internet banking facility at any of the banks registered at NSDL, the bank will take care of your KYC process when you register for the scheme online.