PFRDA launches paperless NPS account through OTP
To make the process of opening an NPS account much easier, PFRDA has now allowed subscribers to open an NPS account through One Time Password (OTP).
The Pension Fund Regulatory and Development Authority (PFRDA) is authorized to protect the interests of old age income security in India i.e. pension systems and pension schemes. PFRDA has taken a number of steps to facilitate the arrival of NPS through various convenient means towards increasing the reach of National Pension System (NPS).
In its effort to provide a digital solution, PFRDA is already offering the facility to open online NPS account through e-signature in a paperless manner. To make the process of opening an NPS account much easier, PFRDA has now allowed subscribers to open an NPS account through One Time Password (OTP).
In this process, customers of banks (registered as POPs), who want to open NPS account through their bank's Internet banking facility, can open NPS account by getting OTP on their registered mobile number.
At the same time, on opening of NPS accounts through POP through non-internet banking digital mode, the OTP will come on the registered mobile number and email, which can be used to open paperless NPS accounts.
After completion of KYC, the POP is required to submit the data of the NPS Subscriber to the Central Record Keeping Agencies (CRA) along with the photograph and signature image. There is also an undertaking that KYC / AML guidelines / rules have been complied with.