For the convenience of NPS subscribers, the PFRDA has approved PoPs or Point of Purchase to process withdrawal or exit request made via soft copies i.e. through submission of scanned and self-certified images of exit documents as per the circular PFRDA/2021/17/SUP-ASP/4 dated May 31, 2021. At the same time, they are required to ensure that all the regulatory requirements with respect to withdrawal are adhered to. As an additional due diligence measure, before the authorization of the NPS exit request, bank account of the beneficiary shall be duly verified.
Also, upon due verification, all such records would need to be sent to the CRA or Central Record Keeping Agency mandatorily via soft copy. "PoPs are now permitted to process the exit/withdrawal applications based on the soft copies after ensuring that the regulations on processing exits as mentioned in Chapter III 15 (2c) of POP Regulations are complied with," said the regulator.
Covid induced hardships continue unabated and in order to alleviate the difficulties being faced by the Subscribers in submitting physical applications for exit/withdrawal and the logistical challenges faced by POPs in collecting those applications to process and dispatch the same to CRA, ithasbeen decided torelax the process of handling withdrawal applications by POPs in in the interest of Subscribers, said the regulator.
Note: Importantly if any dispute arises in future course of time, the PoPs shall be solely held responsible.
Exit window for NPS subscribers via PoPs available till June 30, 2021
The relaxation is permitted till 30th June 2021 by which time the 'online paperless exit process' based on OTP/ e sign is expected to be rolled out by CRA for the benefit of subscribers. From 1st July 2021, POPs are expected to be geared up to process the exit requests of the Subscriber by authorizing the exit documents uploaded by the Subscriber in the CRA system and for which guidelines have been already issued.
It has been observed that in most of the cases withdrawal application related records have not been sent to the CRA by PoPs. So, it is urged that the soft or hard copies as the case may be are to be shared with the respective CRA by PoPs latest by June 30, 2021 without fail.