NPS Update: NPS account will not open without OTP and digital signature, what will be the benefits?

Opening an account in the National Pension System (NPS) is now going to be more secure than ever. The pension regulator PFRDA has issued new rules for those registering online for NPS. According to ET, it is now mandatory to verify identity using an OTP received on the mobile phone or a digital signature (e-Sign) to submit the online registration form. PFRDA stated that this new rule has been implemented by amending the old circular of June 15, 2020.  In the previous circular, the e-sign or OTP facility was only provided as an option.

According to the new PFRDA circular, anyone opening an online NPS account will now have to verify the form using an e-sign or an OTP received on their mobile number at the time of submission. The applicant's consent for all the necessary declarations and terms and conditions at the end of the online form will now be obtained through this OTP or e-signature. Without this verification, the form will not be considered complete.

Banks will now be able to establish their own pension funds to manage NPS PFRDA takes an important decision.

Why was this decision made?
PFRDA stated in its announcement that this decision was taken to make the entire process even more secure and reliable for customers. Following the issuance of this new circular, the pension body has instructed all Central Recordkeeping Agencies (CRAs) and Points of Presence (POPs) to immediately update their systems and online customer onboarding processes in accordance with these new rules.

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