NPS Scheme: According to the circular issued by PFRDA, the Pension Fund Regulatory and Development Authority has made it mandatory to upload the withdrawal and KYC documents for the exit and annuity process.
The rules for withdrawal of pension have been changed. The Pension Fund Regulatory and Development Authority (PFRDA) has issued new rules, which are effective from the first date of the new financial year i.e. 1 April 2023. It has now been made mandatory for National Pension System i.e. NPS subscribers to upload some important documents for withdrawal of pension money. Uploading of these documents will ensure timely payment of Annuity Income Payments.
It is necessary to upload this document
According to the circular issued by PFRDA, the authority has made it necessary to upload Withdrawal and KYC documents for the exit and annuity process. Under this, in addition to the NPS Withdrawal / Exit Form, the subscribers will also have to upload the identity card and address proof. Both these documents must be exactly the same as mentioned in the withdrawal form. Apart from this, it has also been made necessary to upload proof of bank account and copy of Permanent Retirement Account Number (PRAN Card).
Please tell here that withdrawal from the pension scheme can be done before or after the retirement age of 60 years to exit the National Pension System (NPS). By doing this, you will have to use 40% of the accumulated amount to buy annuity from the Annuity Service Provider (ASP). Apart from this, if the remaining amount is less than 5 lakh rupees, the amount can be withdrawn simultaneously.
NPS Withdrawal Process after new rules
According to the rules set by the Pension Fund Regulatory and Development Authority (PFRDA), you will have to login to the CRA system to initiate the online exit request first in the NPS withdrawal process. After the request is started, you will start seeing information about E-Sign/OTP Authentication, Nodal Office/POP Authority. After this process starts from the NPS account, the bank details, address, and other information are automatically filled in the withdrawal form.
Further process In this way
now you have the option to choose the percentage of fund allocation for annuity and withdrawable corpus, annuity details in the next step. Using Penny Drop Verification, your bank account is verified online. You will need to upload KYC documents (identity and address proof), PRAN card/E-PRAN copy and bank documents while submitting the exit application.
Meanwhile, keep in mind that all these documents should be well scanned and readable. After this, in the last step, you can complete the process by selecting the OTP Authentication or e-Sign option. In the first option OTP will be sent to your registered phone number and e-mail ID and in the second you can e-sign the request using your Aadhaar card.
