NPS scheme: Pension Fund Regulatory and Development Authority (PFRDA) has issued a circular making it mandatory NPS subscriber For uploading certain documents with effect from 1st April 2023. The pension body mentioned that uploading these documents would ensure timely annuity income payment.
Documents to be uploaded for quick distribution of annuity income
As per PFRDA circular, parallel processing of exit and annuity requires uploading of certain withdrawal and KYC documents.
The documents you need to upload include:
-NPS Withdrawal/Exit Form
Proof of identity and address as mentioned in the withdrawal form
– Proof of your bank account
PRAN card copy
Steps Involved in Processing of NPS Withdrawal or Withdrawal Request
Whether you have opted for Government NPS scheme or a Corporate NPS scheme, you have to follow these steps to exit from NPS.
1) You need to login to the CRA system to initiate an online exit request.
2) Once you initiate the request, you will see relevant information regarding e-Sign/OTP authentication, Nodal Office/POP authority etc.
3) Once you initiate a request from an NPS account, details like your bank information, address, nominee details, etc. are auto-populated in the NPS withdrawal form.
4) You can choose Fund Allocation Percentage for Annuity and Withdrawable Corpus, Annuity Details etc.
5) Using Penny Drop Verification, your bank account will be verified online.
6) While submitting the exit request, you need to upload KYC documents (Identity & Address Proof), PRAN Card/ePRAN copy and Bank Proof.
7) All the scanned documents should be legible.
8) You can authorize the request using either of the following two options:
9) OTP Authentication – Various OTPs will be sent to your phone number and email ID.
10) E-Sign – You can e-Sign the request using your Aadhaar card.
To exit the National Pension System (NPS), you can withdraw from the pension plan either before or after reaching the retirement age of 60 years. On exit, you should use 40% of the accumulated amount to buy an annuity from an Annuity Service Provider (ASP). If the balance is less than Rs 5 lakh, it can be withdrawn as a lump sum amount.
The text of this story is published from a wire agency feed without any modification. Only the headline has been changed.
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