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NPS launches OTP based authentication

NPS enrolment has witnessed a growth of almost 14% during the covid pandemic:

Supratim Bandyopadhyay claims that PFRDA has enabled a robust and unique architecture with efficient systems

The covid induced lockdown had thrown several mobility-related challenges and a large number of National Pension System (NPS) subscribers found it difficult to submit NPS account opening forms to central record-keeping agencies (CRAs). The Pension Fund Regulatory & Development Authority (PFRDA) had also observed that collection of physical forms at the Points of Presence (PoPs) and thereafter transmitting the same to the CRAs had become quite challenging. So, in the interest of NPS subscribers, PFRDA has decided to extend the OTP based authentication to such accounts. By this method, the subscribers, whose physical forms are not received till now, need not submit them and can continue to avail the services.

Supratim Bandyopadhyay, Chairman, PFRDA, says: “We have enabled a robust and unique architecture with efficient systems. In our endeavour to make the subscriber registration, the exit process, and processing other service requests seamless and subscriber friendly, we have regularly introduced new methods of subscriber authentication such as OTP/ eSign based onboarding, offline Aadhaar-based onboarding, third party onboarding after KYC verification, e-nomination, e-exit for NPS subscribers, etc.”

PFRDA has also advised its intermediaries – CRAs and POPs – to create awareness about this facility of OTP based authentication among the subscribers whose forms have not been received at CRAs so that such accounts can be regularized. The subscribers whose mobile number and email id are registered in their accounts can avail of the facility of OTP-based authentication.

Rs5 tn AUM in 12 YEARS

The AUM of PFRDA has crossed the Rs5 trillion mark and as on 10 October 2020, the total number of subscribers under NPS and Atal Pension Yojana has crossed 37.6 million and the AUM has grown to Rs5.05 trillion. The subscribers’ contributions under the NPS and Atal Pension Yojana have touched this landmark figure in just over 12 years. The growth in NPS subscribers has also been remarkable over the years with 7.04 million employees joining the scheme from the government sector and 2.42 million from the non-government sector.

Supratim Bandyopadhyay says the Rs5 trillion AUM is a major achievement which reflects that the subscribers have faith in PFRDA and NPS. “Our professional fund managers have been delivering market-based returns enabling our subscribers to accumulate their retirement corpus. During this pandemic, there has been a growing realization both among corporates and individuals that retirement planning is not a mere saving or tax benefit choice. The NPS enrolment has been growing almost 14% during this challenging period,” says he.

4 mn subscribers in 8 months

More than 4 million new subscribers have been enrolled under Atal Pension Yojana (APY) during 2020-21 between 1 April 2020 and 13 November 2020 and the total enrolments have crossed 26.3 million. Says Supratim Bandyopadhyay: “Despite the unprecedented challenges poised by the pandemic, the addition of more than 4 million new subscribers in the current FY so far has been remarkable and the result of untiring efforts of banks.”

State Bank of India has sourced more than 1 million new APY accounts, while Canara Bank, Indian Bank, Central Bank of India, Bank of India, Bank of Baroda, Airtel Payments Bank, Punjab National Bank, Axis Bank, and Indian Overseas Bank each has sourced more than 100,000 APY accounts. Aryavart Bank has sourced the highest APY accounts under the RRB category.

More than 4 million APY accounts have already been sourced by 260 APY service providers. As on 20 August 2020, 73.38% of the total subscriber base has opted for Rs1000 pension plan and 16.93% for Rs5000 pension plan, 43.52% are female subscribers and 56.45% are male subscribers, 52.55% subscribers are aged 21-30 years.

Supratim Bandyopadhyay says: “Encouraged by the high-pace of enrolments under the scheme, PFRDA is committed to continuing its endeavour to popularize the scheme through various APY campaigns getting launched at national and state levels, constant engagement with bankers through video-conferences, participation in the state-level banker’s committee (SLBC) meetings, publicity through social, print & electronic media, introducing new contactless technology-driven enablers for on-boarding of APY subscribers to take APY enrolments to greater heights for making India a pension society.”

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