Document text
Page 1 of 2
_____________________________________________________________________________________
बी
–
१४/ए, छũपित िशवाजी भवन, कुतुब सं˕ागत Ɨेũ, कटवाįरया सराय ,नई िदʟी
–
११० ०१६
दूरभाष: 011 - 26517501, 26133730, 26133730 फैƛ: 011 – 26517507, वेबसाइट :www.pfrda.org.in
B-14/A, Chhatrapati Shivaji Bhawan, Qutab Institutional Area, Katwaria Sarai, New Delhi – 110 016
Phone : 011 - 26517501, 26133730 ,26133730 Fax: 011 – 26517507 website: www.pfrda.org.in
CIRCULAR
Circular no: PFRDA/2023/29/Sup-CRA/09 25th October 2023
To
All NPS Stakeholders and Central Recordkeeping Agencies
Subject: Mandatory Penny drop verification - Instant Bank Account Verification for
Enhanced Due Diligence w.r.t. Exit / Withdrawal requests and for modifying the
subscriber's bank account details
Reference is invited to the Circular no PFRDA/2021/21/SUP-NPST/2 dated 20th
July 2021 on the subject Instant Bank Account Verification for enhanced due diligence
under the Exit/Withdrawal process of NPS. Copy of the circular enclosed for ready
reference.
2.
Para 7 of the said Circular has been modified as under:
The penny drop verification has to be necessarily successful with name matching, for
processing the Exit / Withdrawal requests, and also for modifying the subscriber's bank
account details. No request for Exit / Withdrawal, and or for modifying the subscriber's
bank account details shall be allowed in case of failure of penny drop verification by the
CRA. The above-stated provision shall be applicable across sectors i.e. NPS, APY and
NPS Lite for all types of Exits/withdrawals as well as for modification in subscribers' bank
account details.
3.
In case of penny drop failure (irrespective of the reason), the same shall be taken
up by the CRA with the concerned nodal office/intermediary for modification in bank
account details in the subscriber account through set process and after following the
proper due diligence.
4.
CRA shall send communications to the subscriber on his/her mobile number and
e-mail on the penny drop failure and advising him/her to contact his/her nodal officer or
POP as the case may be. Simultaneously, the CRA has to send communication to the
concerned nodal office or POP intimating about the failure of penny drop verification. The
nodal offices and POPs are to be advised to update the details in the CRA system through
S2 form or as per the set process, post which the processing of the exit/withdrawal can
be taken up including re-verification of the bank account through penny drop verification.
The withdrawal request proceeds are to be credited to the salary bank account of the
subscriber in case of Govt Sector, as it has been stipulated vide Circular No.
PFRDA/2015/27/EXIT/2 dated 12th November 2015.
Page 2 of 2
5.
CRA shall before execution of any Exit / withdrawal requests where there has been
a failure of penny drop verification earlier, do proper verification through proper flagging
mechanism in the CRA system and enhanced due diligence checks.
6.
The enhanced due diligence advised above is to be effected immediately. CRAs
must complete the development of said functionality & required system-level utilities
within a period of 30 days from the date of issuance of this Circular.
Yours sincerely,
Chief General Manager
Digitally signed by K
MOHAN GANDHI
1
Cir. No. PFRDA/2021/21/SUP-NPST/2 July 20, 2021
To
All Stake holders under NPS
Subject: Instant Bank Account Verification for enhanced due diligence under the
Exit/Withdrawal process of NPS
Growing Subscribers' base, geographically wide spread service providers and the large-
scale adoption of digital interventions necessitate the importance of verifying the beneficiary's
bank account number of the Subscribers independently not only to ensure that the amount is
received by the rightful beneficiary whose Bank Account is active but also to ensure that amount
is remitted within in the specified timelines.
2.
During the exit (Superannuation, premature or due to death) or in partial withdrawal
from NPS, the Subscribers/nodal offices/POPs (Points of Presence) initiate the withdrawal
request by mentioning the required details including the bank account number and IFSC code
into which the withdrawal proceeds are to be credited. Once the withdrawal request is verified
and authorized in the Central Record Keeping (CRA) system, the proceeds are credited to the
subscriber's/claimant's bank account as the case may be, through electronic mode by the Trustee
Bank.
3.
There are instances when the Subscribers' withdrawal amount could not be credited into
the Savings Bank Account (SBA) of the Subscriber due to any valid reasons as mentioned
below.
(i) Invalid account number/account type
(ii) Invalid/Wrong IFSC code
(iii) Name mismatch
(iv) Account dormant/frozen
2
(v) Account closed
(vi) Account does not exist
(vii) Account is inactive.
(viii) Account is transferred.
(ix) Credit freeze.
(x) Account type mismatch etc
4.
Due to unsuccessful transactions for the reasons as mentioned above, the amounts meant
for the Subscribers could not be credited into the SBA remain with Trustee Bank till the correct
account number is obtained from the Subscriber. This can be overcome with suitable technology
intervention viz Instant Bank Account Verification.
5.
In order to resolve the issue of return of remittances, to protect the interest of subscribers
with timely credit of amount and for additional due diligence to identify the rightful beneficiary,
Instant Bank Account Verification by ‘penny drop’ would be adopted by CRAs, by integrating
their IT system and exit framework with the Fin-tech service providers.
6.
Through ‘penny drop’ process, CRAs would check the active status of SBA and match
the name in bank account number with the name in PRAN (Permanent Retirement Account
Number) or as per the documents submitted. The validity of account is verified by making a
'test transaction' by penny dropping a specified amount into the beneficiary’s SBA and matching
the name based on the penny drop response.
7. The ‘penny drop’ can happen at the time of processing of the Exit/Withdrawal
request. The response of ‘Success’ or ‘Failure’ would be provided by the service provider based
on validation of the SBA number name check as per CRA records. If the bank account details
and other details are not correct, the alternate account number or additional supporting documents
are to be submitted for updating the records. In case the penny drop fails at the time of
processing, the nodal officer /POP/subscribers will be informed to correct the bank account
number and resubmit the application so that their withdrawal request can be processed in a
time bound manner. CRAs may also use ‘penny drop’ process for registration of entities wherever
possible.
8.
CRAs may suitably alert the Subscriber that he/she should not modify/close the existing
bank account once the exit /withdrawal request is captured and till the time it is authorized by
the nodal office/POP and amount credited to the account.
9. The existing charge structure for Instant Bank Acct verification which shall be recovered
by CRAs from the Subscribers for further reimbursement to the service provider is as follows.
(i) K Fin Technologies Pvt Ltd (KCRA)- Rs. 1.90+ tax
(ii) NSDL e-Governance infrastructure Pvt Ltd (NCRA) - Rs. 2.40 + tax
The above charges include Re 1 credited in the SBA of the beneficiary as part of penny drop process.
3
10. CRAs are advised to implement the process of ‘Instant Bank Account Verification for the
benefit of subscribers and as part of additional due diligence to verify the beneficiary.
This circular is issued under Section 14 of PFRDA Act 2013 and is available at PFRDA's website
(www.pfrda.org.in) under the Regulatory framework in "Circular" section.
Yours sincerely
(K. Mohan Gandhi)
Chief General Manager
k.mohangandhi@pfrda.org.in
Page 1 of 2
_____________________________________________________________________________________
बी
–
१४/ए, छũपित िशवाजी भवन, कुतुब सं˕ागत Ɨेũ, कटवाįरया सराय ,नई िदʟी
–
११० ०१६
दूरभाष: 011 - 26517501, 26133730, 26133730 फैƛ: 011 – 26517507, वेबसाइट :www.pfrda.org.in
B-14/A, Chhatrapati Shivaji Bhawan, Qutab Institutional Area, Katwaria Sarai, New Delhi – 110 016
Phone : 011 - 26517501, 26133730 ,26133730 Fax: 011 – 26517507 website: www.pfrda.org.in
पįरपũ
पįरपũ सं : पीएफआरडीए/2023/29/एसयूपी-सीआरए/09 25 अƃूबर 2023
Ůित
एनपीएस के तहत सभी िहतधारक और कŐ ūीय अिभलेखपाल अिभकरण
िवषय: अिनवायŊ पेनी डŌ ॉप सȑापन - िनकास / Ůȑाहरण अनुरोधों और अिभदाता के बœक खाते के
िववरण को संशोिधत करने के सȽभŊ मŐ संविधŊत सावधानी हेतु तǽाल बœक खाता सȑापन
कृपया एनपीएस के िनकास/Ůȑाहरण ŮिŢया के तहत सावधानी बढ़ाने हेतु तǽाल बœक खाता
सȑापन िवषय पर पįरपũ संƥा पीएफआरडीए/2021/21/एसयूपी-एनपीएसटी/2 िदनांक 20 जुलाई
2021 का सȽभŊ लŐ I तǽाल संदभŊ के िलए पįरपũ की Ůित Ůदान की गई है।
2.
उƅ पįरपũ के अनुDžेद 7 मŐ िनɻानुसार संशोधन िकया गया है :
िनकास / Ůȑाहरण अनुरोधों को संसािधत करने और अिभदाता के बœक खाते के िववरण को संशोिधत करने
के िलए, पेनी डŌ ॉप सȑापन आवʴक ŝप से नाम िमलान के साथ सफलतापूवŊक िकया जाना चािहए ।
सीआरए Ȫारा पेनी डŌ ॉप सȑापन के िवफल होने पर अिभदाता के बœक खाते के िववरण को संशोिधत करने
या िनकास / Ůȑाहरण के िलए कोई भी अनुरोध ˢीकार नहीं िकया जाएगा I उपयुŊƅ Ůावधान सभी Ɨेũों
जैसे एनपीएस, एपीवाई और एनपीएस लाइट मŐ सभी Ůकार के िनकास/Ůȑाहरण के साथ-साथ अिभदाताओं
के बœक खाता िववरण मŐ संशोधन के िलए भी लागू होगा।
3.
पेनी डŌ ॉप िवफल होने पर (कारण चाहे जो भी हो), अिभदाता खाते मŐ बœक खाता िववरण मŐ संशोधन
के िलए इसे सीआरए Ȫारा िनधाŊįरत ŮिŢया के माȯम से सावधानी पूवŊक संबंिधत नोडल कायाŊलय/मȯ˕
के सामने उठाया जाएगा।
4. पेनी डŌ ॉप के िवफल होने पर अिभदाता को सीआरए उसके मोबाइल नंबर और ई-मेल पर उसके
बारे मŐ सूचना भेजेगा और उɎŐ सलाह दी जाएगी िक वे, मामले के अनुसार, अपने नोडल अिधकारी या
पीओपी से संपकŊ करे। इसके साथ ही, सीआरए को पेनी डŌ ॉप सȑापन की िवफलता के बारे मŐ सूिचत करने
के िलए संबंिधत नोडल कायाŊलय या पीओपी को सूिचत करना होगा। नोडल कायाŊलयों और पीओपी को
सलाह दी जाती है िक वे एस 2 फॉमŊ के माȯम से या िनधाŊįरत ŮिŢया के अनुसार सीआरए Ůणाली मŐ
िववरण को अपडेट करŐ, िजसके बाद िनकास/Ůȑाहरण की ŮिŢया मŐ पेनी डŌ ॉप सȑापन के माȯम से बœक
खाते का पुन: सȑापन को शािमल िकया जा सके।
पįरपũ संƥा पीएफआरडीए/2015/27/िनकास/2 िदनांक 12 नवंबर 2015 के तहत िनधाŊįरत िकया गया
है िक सरकारी Ɨेũ के मामले मŐ िनकासी अनुरोध रािश को अिभदाता के वेतन बœक खाते मŐ जमा की जानी
है।
Page 2 of 2
5.
ऐसे िकसी भी िनकास/Ůȑाहरण अनुरोधों िन˃ादन से पहले, जहां पूवŊ मŐ पेनी डŌ ॉप सȑापन िवफल
Šआ हो, सीआरए Ȫारा सीआरए Ůणाली मŐ उिचत ɢैिगंग तंũ के माȯम से उिचत सȑापन िकया जाएगा
और सावधानीपूवŊक जाँच की जाएगी।
6.
उपयुŊƅ संविधŊत सावधानी को तुरंत लागू िकया जाना है। सीआरए को इस पįरपũ के जारी होने की
ितिथ से 30 िदनों की अविध के भीतर उƅ कायŊŮणाली और आवʴक िसːम ˑर की उपयोिगताओं को
िवकिसत करना होगा।
भवदीय,
मुƥ महाŮबंधक
Digitally signed by
K MOHAN GANDHI
1
Cir. No. PFRDA/2021/21/SUP-NPST/2 July 20, 2021
To
All Stake holders under NPS
Subject: Instant Bank Account Verification for enhanced due diligence under the
Exit/Withdrawal process of NPS
Growing Subscribers' base, geographically wide spread service providers and the large-
scale adoption of digital interventions necessitate the importance of verifying the beneficiary's
bank account number of the Subscribers independently not only to ensure that the amount is
received by the rightful beneficiary whose Bank Account is active but also to ensure that amount
is remitted within in the specified timelines.
2.
During the exit (Superannuation, premature or due to death) or in partial withdrawal
from NPS, the Subscribers/nodal offices/POPs (Points of Presence) initiate the withdrawal
request by mentioning the required details including the bank account number and IFSC code
into which the withdrawal proceeds are to be credited. Once the withdrawal request is verified
and authorized in the Central Record Keeping (CRA) system, the proceeds are credited to the
subscriber's/claimant's bank account as the case may be, through electronic mode by the Trustee
Bank.
3.
There are instances when the Subscribers' withdrawal amount could not be credited into
the Savings Bank Account (SBA) of the Subscriber due to any valid reasons as mentioned
below.
(i) Invalid account number/account type
(ii) Invalid/Wrong IFSC code
(iii) Name mismatch
(iv) Account dormant/frozen
2
(v) Account closed
(vi) Account does not exist
(vii) Account is inactive.
(viii) Account is transferred.
(ix) Credit freeze.
(x) Account type mismatch etc
4.
Due to unsuccessful transactions for the reasons as mentioned above, the amounts meant
for the Subscribers could not be credited into the SBA remain with Trustee Bank till the correct
account number is obtained from the Subscriber. This can be overcome with suitable technology
intervention viz Instant Bank Account Verification.
5.
In order to resolve the issue of return of remittances, to protect the interest of subscribers
with timely credit of amount and for additional due diligence to identify the rightful beneficiary,
Instant Bank Account Verification by ‘penny drop’ would be adopted by CRAs, by integrating
their IT system and exit framework with the Fin-tech service providers.
6.
Through ‘penny drop’ process, CRAs would check the active status of SBA and match
the name in bank account number with the name in PRAN (Permanent Retirement Account
Number) or as per the documents submitted. The validity of account is verified by making a
'test transaction' by penny dropping a specified amount into the beneficiary’s SBA and matching
the name based on the penny drop response.
7. The ‘penny drop’ can happen at the time of processing of the Exit/Withdrawal
request. The response of ‘Success’ or ‘Failure’ would be provided by the service provider based
on validation of the SBA number name check as per CRA records. If the bank account details
and other details are not correct, the alternate account number or additional supporting documents
are to be submitted for updating the records. In case the penny drop fails at the time of
processing, the nodal officer /POP/subscribers will be informed to correct the bank account
number and resubmit the application so that their withdrawal request can be processed in a
time bound manner. CRAs may also use ‘penny drop’ process for registration of entities wherever
possible.
8.
CRAs may suitably alert the Subscriber that he/she should not modify/close the existing
bank account once the exit /withdrawal request is captured and till the time it is authorized by
the nodal office/POP and amount credited to the account.
9. The existing charge structure for Instant Bank Acct verification which shall be recovered
by CRAs from the Subscribers for further reimbursement to the service provider is as follows.
(i) K Fin Technologies Pvt Ltd (KCRA)- Rs. 1.90+ tax
(ii) NSDL e-Governance infrastructure Pvt Ltd (NCRA) - Rs. 2.40 + tax
The above charges include Re 1 credited in the SBA of the beneficiary as part of penny drop process.
3
10. CRAs are advised to implement the process of ‘Instant Bank Account Verification for the
benefit of subscribers and as part of additional due diligence to verify the beneficiary.
This circular is issued under Section 14 of PFRDA Act 2013 and is available at PFRDA's website
(www.pfrda.org.in) under the Regulatory framework in "Circular" section.
Yours sincerely
(K. Mohan Gandhi)
Chief General Manager
k.mohangandhi@pfrda.org.in
