New Delhi: Pension Fund Regulatory and Development Authority (PFRDA) devised a suitable technology intervention called Instant Bank Account Verification thus using “Penny drop” facility for the National Pension System (NPS) subscriber who wish to withdraw their funds. In order to ensure that the withdrawal amount is remitted within in the specified timelines in the subscriber’s account the penny drop.
In order to resolve the issue of return of remittances and to protect the interest of NPS subscribers with timely credit of amount and for additional due diligence to identify the rightful beneficiary, Instant Bank Account Verification by ‘penny drop’ would be adopted by CRAs, by integrating their IT system and exit framework with the Fin-tech service providers.
The above facility has been initiated by the PFRDA because it has been seen that during the exit owing to reasons like superannuation, premature or due to death or in partial withdrawal from NPS, the Subscribers’ withdrawal amount could not be credited into the Savings Bank Account (SBA) of the Subscriber due to any valid due to various reasons.
PFRDA has identified 10 most common reasons why Money is not credited into the Savings Bank Account of the NPS subscribers
(i) Invalid account number/account type
(ii) Invalid/Wrong IFSC code
(iii) Name mismatch
(iv) Account dormant/frozen
(v) Account closed
(vi) Account does not exist
(vii) Account is inactive.
(viii) Account is transferred.
(ix) Credit freeze.
(x) Account type mismatch etc
PFRDA has also advised the CRAs (Central Record Keeping)to implement the process of ‘Instant Bank Account Verification for the benefit of subscribers and as part of additional due diligence to verify the beneficiary.