PFRDA now allows paperless integration with CYKCR to open an NPS account
The Pension Funds Regulation and Development Authority (PFRDA) has simplified the onboarding process for NPS account holders. The decision to ease the process and allow a paperless onboarding system through CYKC was considered as part of the national pension system.
The National Retirement System refers to a defined contribution retirement savings scheme that allows subscribers to decide on their future investments through systematic savings during their working lives.
The CKYC facility was launched by the central government to provide relaxation to NPS subscribers who use Aadhar-based offline paperless KYC. PFRDA has facilitated the procedure to save customers the hassle of doing KYC repeatedly to avail financial services under various regulators.
“The goal of CKYCR is to facilitate the process of opening accounts with financial service providers and relieve investors of the burden of producing KYC documents and verifying them every time,” PFRDA said in a statement.
Pension fund regulator PFRDA on Monday announced its new decision allowing users to obtain benefits and avail financial services through the government’s central KYC. PFRDA has already started digital onboarding under the National Pension System through documents issued via DigiLocker, Aadhaar eKYC, PAN or bank account information etc.
Taking into account 75 years of independence, the government introduced Azadi Ka Amrit Mahotsav (AKAM) to highlight the importance of the digital boom. Taking this into consideration, PFRDA has announced that potential subscribers will be offered another option to open an NPS account through CKYC which is online and paperless.
The process will be simple, easy and secure and will appeal to tech-savvy millennials. Previously, NPS account holders had to do KYC before availing any financial service. But now they don’t have to follow the same procedure because the CKYC only needs to be done once.
Central Registry for the Reconstruction of Securitization Assets and Securities India (CERSAI) is in charge of managing CKYC. PFRDA states that the objective of CKYCR is to facilitate the process of opening accounts in financial services. According to the PFRDA, this central government effort will take the hassle out of preparing KYC documents and verifying them every time.
Read all Latest business news here