PFRDA is expanded as The Pension Fund Regulatory and Development Authority has introduced a new rule under bank account verification to make the process much easier than before. It also includes a name-PAN matching process and both shall be done using the National Payments Corporation of India (NPCI) Framework.
Under this new rule, PRAN-PAN-VPA(UPI) shall be linked through the National Payments Corporation of India (NPCI) digitising the complete process.
The PFRDA circulated a message stating that “As part of Azadi Ka Amrit Mahotsav (AKAM) and to commemorate 75 years of India’s Independence, PFRDA is pleased to introduce an advanced mode of Bank Acct Verification of the Subscribers (PAN-PRAN- VPA (UPI)) with elegant features where the joint holder details, PAN and UPI Ids are verified through NPCI and matched with Permanent Retirement Account Number (PRAN).”
Advantages of using PAN-PRAN-VPA(UPI) framework
The following are the advantages of using the PAN-PRAN-VPA(UPI) framework
- There shall be no error in the payout process.
- A binary process would be better than the logic of name matching.
- Involves matching of PAN that is seeded in PRAN & bank account.
- Timely processing of requests for withdrawals.
How will NPS subscribers benefit
If you are an NPS subscriber then here are the benefits you shall expect from this change:
- You shall get a fast and prompt response.
- It works for the second and third holders of the account too.
- The old process is used to fetch incomplete information whereas the new one will eliminate issues in fetching longer names.
- More logical process for name matching.
Conclusion
In this article, we learnt about the National Pension System New Rule Update by PFRDA which is really important for us as it will eliminate the errors we used to face in the process of name matching and bank verification process.
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