There has been a big change for those who want to withdraw pension money (Pension Withdrawal Rules). The government has changed the rules for those withdrawing money under the National Pension System (NPS New Rule). Information about this change was given by the Pension Fund Regulatory and Development Authority.
Penny drop verification became necessary
Pension Fund Regulatory and Development Authority has made penny drop verification mandatory for withdrawing pension money (NPS New Rule). So that the money can be transferred on time. This new rule will reveal the actual status of the accounts.
Currently, the active and real status of the accounts is checked by the central agencies to withdraw money. Also, the name is matched in PRAN (Permanent Retirement Account Number), bank account or documents. Which takes time.
What is Penny Drop?
In this new rule, to check the validity of the accounts, the name is matched by depositing a small amount in the beneficiary’s bank account on the basis of penny drop process. In which there is no need to match other documents. Also, by doing this, time will be saved and transactions will also happen faster.
This new rule is for all pension related withdrawals
This rule will be applicable for withdrawal from all pension deposits like Atal Pension Yojana, Pension Pension System, NPS Lite. Also, the same procedure will be followed in case of change of details in the bank accounts of the pension taking customers. So that there is no problem in verification.
Reasons for verification failure
: · Invalid account type or account number,
· Required details not updated,
· Inactive or closed account,
· Name or other details incorrect,
· Incorrect or invalid IFSC code.
What happens if verification fails?
If the pensioner’s penny drop verification fails, then any applications like change in details, withdrawal of funds from NPS will not be accepted. For this you will have to submit all the correct information again.
