“In the current Covid – 19 pandemic situation, considering that NPS subscribers may not be in a position to submit physical exit documents, the Nodal offices are advised to accept the scanned and self-certified images of documents through digital means,” PFRDA said.
Due to the coronavirus and the nationwide lockdown imposed to contain its spread, most of us have stayed at home and not ventured out. Even during Unlock 1.0, people have been staying home. Due to this, the Pension Fund Regulatory and Development Authority (PFRDA) has announced that it has eased the withdrawal process for subscribers of the National Pension System (NPS). They can submit exit documents online till June 30, 2020.
NPS subscribers can now submit scanned and self-certified images of exit documents through digital means as a special case and process their requests. The digital process is allowed only till June 30, 2020, PFRDA said in a circular dated June 5. Normally, NPS subscribers have to submit exit documents physically to the nodal office or point-of-presence providers (POPs).
The online exit process
According to the PFRDA circular, “In the current Covid – 19 pandemic situation and the challenges, considering that the Subscribers may not be in a position to submit the physical exit documents, the Nodal offices/ POPs are advised to accept the scanned and self-certified images of documents through digital means as a special case and process their requests. The requests can be received from the registered email ids of Subscribers/Nodal officers. POPs/Nodal officer shall carry out and be responsible for due diligence before authorizing the withdrawal request. The Nodal officers/ POPs need to ensure that the duly authorized and completed documents reach the respective CRA by end of July 31, 2020.
Apart from this, the existing facility to upload withdrawal related documents in the CRA system while initiating ‘online withdrawal’ request can be used quite extensively by subscribers/ nodal officer/POPs. “The documents thus uploaded help in instantaneous processing of lump sum withdrawal and enable Annuity Service Provider (ASP) to issue annuity based on the documents already uploaded,” the circular stated.
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How offline exit process works
Normally, NPS withdrawals including partial withdrawal are allowed as defined under NPS exit regulations. NPS subscribers who intend to withdraw are required to submit the duly filled-up withdrawal forms along with the supporting documents to the associated nodal officers or POPs for processing their request.
Upon authorisation by the nodal officer or POP, withdrawal requests are executed in the CRA system to allow lump sum withdrawals and the subscribers’ information is shared with Annuity Service Provider (ASP) for issuing annuity. Subsequently, the nodal officer/ POP will submit the physical withdrawal documents to the CRA for storage and record keeping.
