What is the new mandatory requirement for NPS fund withdrawal according to PFRDA
PFRDA has made 'penny drop' verification mandatory for NPS fund withdrawal.
According to the Pension Fund Regulatory and Development Authority (PFRDA), a new mandatory requirement for NPS (National Pension System) fund withdrawal is the 'penny drop' verification. Here are the key points regarding this requirement:
- Purpose: The 'penny drop' verification is aimed at preventing fraudulent withdrawals and ensuring the authenticity of the withdrawal requests.
- Verification Process: Under this requirement, the subscriber's bank account details provided for the NPS fund withdrawal will be verified through a small deposit of a nominal amount (penny).
- Confirmation: Once the penny is deposited into the subscriber's bank account, the subscriber needs to confirm the receipt of the amount through the NPS withdrawal portal.
- Authentication: The verification process helps authenticate the bank account details provided by the subscriber. It ensures that the withdrawal amount will be credited to the correct bank account and reduces the risk of incorrect or fraudulent withdrawals.
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a year ago