New Delhi: Pension Fund Regulatory and Development Authority (PFRDA) has not too long ago launched a “Penny drop” facility for the National Pension System (NPS) to be able to ensure that the withdrawal quantity is remitted inside within the specified timelines within the subscriber’s account.
During the exit owing to causes like superannuation, untimely or because of loss of life or in partial withdrawal from NPS, the Subscribers/nodal workplaces/POPs (Points of Presence) provoke the withdrawal request by mentioning the required particulars together with the checking account quantity and IFSC code into which the withdrawal proceeds are to be credited. Once the withdrawal request is verified and licensed within the Central Record Keeping (CRA) system, the proceeds are credited to the subscriber’s/claimant’s checking account because the case could also be, via digital mode by the Trustee Bank.
However, there have been cases when the Subscribers’ withdrawal quantity couldn’t be credited into the Savings Bank Account (SBA) of the Subscriber because of any legitimate because of causes like Invalid account quantity/account sort, Invalid/Wrong IFSC code, Name mismatch, Account dormant/frozen, Account closed, Account doesn’t exist, Account is inactive, Account is transferred, Credit freeze and Account sort mismatch and so on. The quantities meant for the subscribers thus isn’t be credited into the SBA stay with Trustee Bank until the right account quantity is obtained from the Subscriber.
How does PFRDA’s Penny drop facility ensure timely credit of NPS withdrawal funds
It is within the above backdrop that that PFRDA has devised an acceptable know-how intervention viz Instant Bank Account Verification.
In order to resolve the problem of return of remittances and to guard the curiosity of subscribers with timely credit of quantity and for added due diligence to determine the rightful beneficiary, Instant Bank Account Verification by ‘penny drop’ can be adopted by CRAs, by integrating their IT system and exit framework with the Fin-tech service suppliers.
Through ‘penny drop’ course of, CRAs would test the lively standing of SBA and match the identify in checking account quantity with the identify in PRAN (Permanent Retirement Account Number) or as per the paperwork submitted. The validity of account is verified by making a ‘check transaction’ by penny dropping a specified quantity into the beneficiary’s SBA and matching the identify based mostly on the penny drop response.
In case the penny drop fails on the time of processing, the nodal officer /POP/subscribers will learn to appropriate the checking account quantity and resubmit the applying in order that their withdrawal request will be processed in a time sure method. CRAs may additionally use ‘penny drop’ course of for registration of entities wherever potential.