NPS account: Now you can open NPS account using OTP-based authentication. Here’s how

The Pension Fund Regulatory and Development Authority (PFRDA) has announced that National Pension System (NPS) accounts can be opened using one-time password (OTP) based authentication. “This process would ensure seamless account opening, end to end digitization and optimizing of investment returns by deposit of contributions in a faster way,” PFRDA said in a press release.

This comes a few weeks after the PFRDA enabled opening of online NPS accounts in a paperless manner through e- signature. As part of its developmental mandate and to increase the outreach of NPS, PFRDA has taken series of steps to ensure ease of NPS on boarding through various convenient modes.

Here is a look at how subscribers can open an NPS account using an OTP, according to the latest PFRDA press release.

In this process, customers of banks (registered as POPs- Points of Presence), who wish to open an NPS account through Internet banking of the respective banks, can open NPS Accounts using OTP received on their registered mobile number.

However, for opening of NPS accounts through non-Internet banking digital mode, through POPs (banks as well as non-bank POPs), OTP received on their registered mobile number and email can be used for paperless NPS Account opening, as per the release.

Post-completion of the know-your-customer (KYC) process, POPs have to submit the NPS subscriber’s data/information to the Central Record Keeping Agencies (CRAs) along with his photo and image of signature with an undertaking that the KYC/AML guidelines/rules have been duly complied with.

POPs and CRAs have been advised by PFRDA to provide the required functionality of OTP-based authentication.

PFRDA administers more than 3.6 crore subscribers under NPS with an aggregate asset under management (AUM) of more than Rs. 4.55 lakh crore. Out of total subscribers, 2.25 crore subscribers are under the Atal Pension Yojana, as per the release.

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