e-NPS subscribers can soon exit from the scheme via offline Aadhaar process; here's what you need to do

e-NPS subscribers will soon have an option to opt out from the National Pension Scheme (NPS) through 'Self-authorization'. This has been proposed by the Pension Fund Regulatory and Development Authority (PFRDA).

Subscribers having a corpus up to Rs 10 lakh in their NPS accounts need to provide offline Aadhaar details for an exit. By visiting NSDL website or by filling up the physical withdrawal form and submitting it to the respective Nodal Office/Point of Presence (POP), these subscribers can also exit via an online and offline process.

By using offline Aadhaar process, currently, subscribers can open NPS accounts. The PFRDA has decided to make the exit process more agile as per the circular issued on December 22, 2020.

More pension fund managers, higher fees on the anvil for NPS subscribers

In compliance with the PFRDA's exit regulations, the e-NPS subscribers with a corpus of up to Rs 10 lakh in their NPS accounts can furnish their offline Aadhaar details for the exit.

An online platform has recently been enabled for e-NPS subscribers whose corpus is more than Rs 10 lakh as well as for the subscribers who are associated with POPs (Points of Presence).

The circular said: "The exit requests of all citizen/corporate sector subscribers would be verified by POPs, while exits of e-NPS subscribers (not associated with any POP) would be verified by their respective banks which are registered as POPs with the PFRDA in the process."

NPS subscribers can exit from the scheme easily through 'self authorization' using offline Aadhaar. Here's how:

- The subscriber, using PRAN and I-PIN, needs to login into the CRA system.

- Provide the details viz allocation of the corpus, Annuity Service Provider (ASP) details, annuity scheme etc and select the exit menu.

- Bank details will be shown in non-editable mode. Other details such as subscriber's name, gender, father name, address details will be auto-populated in non-editable mode.

-Subscriber will upload KYC documents, withdrawal documents, bank proof etc.

-After providing all the details, the subscriber will have to e-sign.

-On submission of the exit request, acknowledgement ID will be provided to the subscriber.

-If the corpus is below Rs 10 lakh, then Self-Authorization option will be provided to the subscriber.

-Below process will be followed, if a subscriber opts for ‘Self-authorization’

a) Subscriber will download the offline Aadhaar XML File from UIDAI website. UIDAI Link and help page will be provided to the subscriber for downloading offline Aadhaar XML File.

b) Upload the offline Aadhaar XML file in CRA system and provide the Aadhaar Share Code, mobile number, and email ID.

c) CRA system will validate the Aadhaar Share Code and mobile number with the offline Aadhaar XML file.

d) Subscriber's name in CRA records should match Aadhaar.

e) After successful validation, the self-authorization withdrawal request will be accepted in the CRA system for execution.

f) Instant Bank Account verification through penny drop will be undertaken by CRAs and the cost will be borne by the respective subscribers.

- CRA system will provide the subscriber's details to concerned Annuity Service Provider or ASP (the insurance company you have selected to pay the annuity).