Why has the PFRDA made 'penny drop' verification mandatory for NPS fund withdrawal

The PFRDA has made 'penny drop' verification mandatory for NPS fund withdrawal for the following reasons: 1. Preventing fraudulent activities: The primary aim is to protect investors from potential frauds and unauthorized fund withdrawals. 'Penny drop' verification ensures that the withdrawal request is genuine and made by the actual account holder. 2. Enhancing security measures: By implementing 'penny drop' verification, the PFRDA is raising the level of security and introducing an additional layer of verification in the withdrawal process. This reduces the risk of unauthorized access to NPS funds. 3. Minimizing errors: The 'penny drop' verification process helps in minimizing errors that may occur during fund withdrawals. It ensures accuracy by verifying and matching the withdrawal amount with the available balance in the account. 4. Strengthening regulatory oversight: The PFRDA is responsible for regulating and developing the NPS. By enforcing 'penny drop' verification, it enhances its oversight capabilities and ensures compliance with regulatory guidelines. Overall, the implementation of 'penny drop' verification for NPS fund withdrawal aims to safeguard investors and promote the integrity of the NPS system.