The Pension Fund Regulatory and Development Authority (PFRDA) now requires a quick check of bank accounts. This is to make sure that when people take out money or leave the National Pension System (NPS), their funds get into their bank accounts fast. According to a report from ET, they’ll use a simple penny-drop method for this verification.
NPS Exit Rules
According to a notice from PFRDA on October 25, 2023, to get money or leave the system, you need a successful penny-drop check and make sure your name matches. It’s important for them to update your bank details correctly.
If the CRA can’t confirm the penny drop, the pension folks say they won’t allow any requests for leaving, taking out money, or changing the bank info. If the penny drop check fails, the CRA will work with the right office to fix the subscriber’s bank info using the proper process.
If the penny drop doesn’t work, the CRA will tell the subscriber through mobile and email, asking them to contact the nodal officer or POP. At the same time, the CRA will let the nodal office or POP know about the penny drop issue.
”The nodal offices and POPs are to be advised to update the details in the CRA system through the S2 form or as per the set process, post which the processing of the exit/withdrawal can be taken up including re-verification of the bank account through penny drop verification. The withdrawal request proceeds are to be credited to the salary bank account of the subscriber in the case of the government sector, as it has been stipulated vide Circular No. PFRDA/2015/27/EXIT/2 dated 12th November 2015,” said PFRDA.
If penny drop verification didn’t work before, the CRA will double-check things and do extra checks before handling any exit or withdrawal requests.
Also read:
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Few Penny Drop Failure Reasons:
- Wrong details
- IFSC Code mistake
- Account is frozen
- Account is not active
- Account does exists anymore
- Account is transferred or closed
- Freeze credit status
- Account number is invalid
- And others
