PFRDA (Pension Funds Regulatory and Development Authority) and IRDAI (Insurance Regulatory and Development Authority of India) have announced 4 rule changes for NPS subscribers and pensioners. Check out these latest updates if you are a pensioner or invest in NPS.
No need to submit a separate form to purchase the annuity from NPS at retirement
Previously, NPS holders had to submit an exit form to PFRDA and a proposal form to the insurance company at the time of retirement. However, to ease the onboarding process of NPS account holders, IRDAI has relaxed this regulation and has declared that the exit form will be treated as a proposal form. This will reduce the time and effort of the beneficiary.
Changes in the process flow of e-nomination
The e-nomination process for NPS subscribers for both the public and private sectors has gone through some adjustments.
“Once a subscriber submits their e-nomination form, the Nodal Officer will have the option to accept or reject it. If the Nodal Officer does not initiate any action against the request within a period of 30 days from submission, the request will automatically shift to Central Recordkeeping Agencies (CRA) System, “ added PFRDA.
The revised process will be effective from October 1, 2022. It will be applicable to existing requests which are still unauthorised. An NPS Subscriber is required to make a nomination when they sign up for the pension scheme.
NPS account holders cannot use credit cards to make payment
NPS tier-II account holders can no longer use their credit cards as a mode of payment, said PFRDA. The authority has declared that tier-II account holders cannot use their credit cards to make NPS subscription payments, which has been effective from August 3, 2022.
It has also directed all the PoPs (Points of Presence) to stop accepting payments made via credit cards for NPS tier–II account holders.
Aadhaar-based authentication for digital life certificate
IRDAI has announced that the signature to a digital life certificate or survival certificate can be taken via biometrics.
“Since the annuity amount is payable only as long as the annuitant survives, life insurance companies take an annual “survival certificate” from the annuitant. IRDAI has now clarified that the signature to the “survival certificate” can be taken through biometric-based digital means,” said Conjeevaram Baradhwaj, Executive Vice President (Legal & Compliance) & Company Secretary at Future Generali India Life Insurance said.
IRDAI has directed the life insurance companies to adapt to Aadhaar-based data authentication for verification of life certificates, such as Jeevan Praman, to process the payment for the pensioners.
This article is solely for educational purposes. Navi doesn't take any responsibility for the information or claims made in the blog.
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