NPS Transactions Rules Changes: Major changes have been made regarding the rules of NPS transaction, know PFRDA’s statement

From April 1, 2023, some rules related to transactions are being changed for the members of the National Pension System (NPS). Actually, the Pension Fund Regulatory and Development Authority (PFRDA) has said that it is mandatory for the NPS account holders to link PAN-Aadhaar.

Failure to do so may result in blocking of NPS transactions. The authority said that NPS account holders should note that their NPS account is KYC compliant. According to the Pension Fund Regulatory and Development Authority (PFRDA) NPS subscribers should ensure that their PAN and Aadhaar numbers are linked before March 31, 2023 to ensure seamless ongoing transactions and avoid penalties .

PFRDA has said that since PAN is a key identification number for the account holder and is part of the KYC requirements for NPS accounts. Hence there is a need to ensure valid KYC for all customers.

According to the circular of the Central Board of Direct Taxes (CBDT), if the PAN given to a person is not linked to Aadhaar by March 31, 2023, it will become inactive. If this happens, penalty and fine will be applicable under the Income Tax Act 1961. Every person who has been assigned a Permanent Account Number (PAN) as per the provisions of the Income Tax Act, 1961. He needs to inform the concerned authorities of his Aadhaar number so that Aadhaar and PAN can be linked. This should be completed on or before the notification date, otherwise the PAN will become inoperative.

How can existing subscriber update Aadhaar number in NPS account?

1. First of all login to your NPS account through https://cra-nsdl.com/CRA/.
2. After this, click on the sub-menu ‘Update Aadhaar / Address Details’.
3. Now click on ‘Update Details’ under the new menu that opens.
4. After that select the option ‘Add/Update Aadhaar Number’.
5. Now enter your Aadhaar number and click on ‘Generate OTP’.
6. Account holder should enter the OTP received from UIDAI on his registered mobile number.
7. After authentication through OTP, Aadhaar will be linked to your PRAN.
8. NPS account holders may note that the name entered for your PRAN should exactly match the registered name.
9. Thereafter, you will get the message that Aadhaar seeding request is successful for your Permanent Retirement Account Number (PRAN).