15 new changes introduced in NPS pension scheme, Check here

To meet the requirements of the National Pension System (NPS) and Atal Pension Yojana (APY) architecture, the Central Recordkeeping Agencies (CRAs) registered with the Pension Fund Regulatory and Development Authority (PFRDA) are continuously improving their systems. These improvements aim to enhance the user experience and simplify operations for subscribers and stakeholders.

Recent NPS Functionality Updates

The CRAs have implemented several new functions in Quarters III and IV of FY 2023-24. These updates were mentioned in a Pension Fund Regulatory and Development Authority notification dated June 14, 2024. Let’s take a look at some of the important NPS functions that have recently been announced:

1. Bank Verification for Exit/Withdrawal Requests: Successful bank verification with name matching is now required for processing exit/withdrawal requests and modifying a subscriber’s bank account details.
2. Online Screen-based Facility for PoPs: A new online facility has been implemented for Points of Presence (PoPs) to process death withdrawal requests. This facility includes bank details verification through penny drop, with mandatory name verification.
3. Increased Document Upload Limit: The limit for document uploads has been increased from 2 MB to 5 MB for certain withdrawal requests, including pre-mature exit, superannuation, and incapacitation.
4. Nodal Office Bank Details Upload: Nodal Offices now have the facility to upload bank details according to their HRIMS system. This allows them to provide and update salary bank details for their underlying subscribers through bulk processing.
5. Mandatory Mobile Number: Subscribers are now required to provide a unique mobile number in their NPS account during withdrawal or exit.
6. Penny Drop Verification for NPS Lite: Penny drop verification (mandatory name verification) has been implemented for NPS Lite subscribers in cases of withdrawal on death and partial withdrawal. It is also implemented during registration for GDS (Gramin Dak Sevak) subscribers.
7. Multiple PF Option: Subscribers can now opt for multiple PF (Pension Fund) options under Active Choice investment after three months from the date of NPS account opening.
8. Changes in Family/Disability Pension Requests: Changes have been implemented in the processing of family/disability pension requests, including the bifurcation of employer-employee contributions and the implementation of penny drop with mandatory name match to verify bank details of the subscriber/claimant.
9. Aadhaar-based Authentication for Nodal Offices: Additional security features have been implemented for Nodal Offices, including Aadhaar-based authentication for login to the CRA. Login through Aadhaar has been made mandatory.
10. Systematic Lump Sum Withdrawal (SLW) Option: A new SLW option has been introduced at the time of superannuation. Subscribers now have the option to redeem their NPS corpus (only the lump sum portion) at periodic intervals. They can select the amount they want to receive on a periodic basis or specify the age until which they want to receive the amount.
11. Bank Account Verification: Subscribers can now check the verification status of their bank account before placing an exit/withdrawal request. This option is available in the Subscriber’s login and allows them to verify existing bank details through penny drop.
12. Claim ID Generation: For all citizen subscribers, the Claim ID now gets generated at the time of initiation of premature exit withdrawal requests, following the guidelines.
13. Removal of XIRR Value: The Financial Year XIRR value has been removed from the Online Transaction Statement, IVR statement, and Monthly Statement.
14. Separate Option for Updating Fields: A separate option has been introduced to update fields such as name change, date of joining, date of birth, and date of retirement. Mandatory document uploads are required for updating these details to ensure that correct information is updated in CRA records.
15. Password Policy Change: The password policy has been updated to include the following requirements:

• 8 to 16 characters in length
• At least 1 uppercase letter (A-Z)
• At least 1 lowercase letter (a-z)
• At least 1 number (0-9)
• At least 1 special character from the set (!@#$A&A_)
• No space characters allowed

These recent updates and enhancements to the NPS system aim to improve the user experience, simplify operations, and ensure the security and accuracy of subscriber information.