Pension Withdrawal Rules: If you are also thinking of withdrawing pension money, then now a big change has happened. The rules for withdrawing money under the National Pension System have changed. Pension Fund Regulatory and Development Authority (PFRDA) has given information about this.
Pension Fund Regulatory and Development Authority (PFRDA) has made ‘Penny Drop’ verification mandatory for shareholders to withdraw money under the National Pension System (NPS). This will ensure timely transfer of shareholders’ money.
Real status of accounts will be known
Under the ‘Penny Drop’ process, the central record keeping agencies (CRAs) look at the real and active status of the bank savings account. Apart from this, the bank account number and ‘PRAN’ (Permanent Retirement Account Number) or the name given in the filed documents are matched.
Rules will be applicable for all pension withdrawals
These provisions will be applicable to all types of withdrawals in NPS, Atal Pension Yojana and NPS Lite as well as changes in bank account details of customers.
What is penny drop?
Let us tell you that the validity of the account is verified by putting a small amount in the beneficiary’s bank account and doing a ‘test transaction’ by matching the name based on the penny drop response.
According to a recent notification from PFRDA, “Penny drop verification must be successful for name matching, processing exit/withdrawal applications and modifying the customer’s bank account details.”
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