Pension Fund Regulatory and Development Authority (PFRDA) in respect of the pension scheme administered by it i.e. NPS has allowed NACH or National Automated Clearing House mandate to overcome the varied problems concerning fund transfer. Now through this advancement or NACH mandate feature, the entire transaction process involved in NPS will become online for PoP as well as other NPS distributors.
Current fund transfer process in NPS
In the current regime, the nodal offices submit NPS contribution of subscribers by working on a subscriber contribution file (SCF) and then uploading it on the "NPSCAN system" after verification of the same. Later, the nodal officer goes to the accredited bank for transferring the funds (the same amount i.e. shown in the SCF) to the trustee bank.
New NACH mandate proposed for NPS
To get rid of the various fund transfer related issues, PFRDA has come up with the NACH mandate that is jointly handled by the trustee bank and CRA (central record keeping agency).