PFRDA proposes changes in premature exit rules for Atal Pension Yojana

Loading...

NEW DELHI: To increase acceptability of Atal Pension Yojana (APY) scheme among informal sector workers, the Pension Fund Regulatory and Development Authority (PFRDA) has proposed modifications in premature exit processing for the benefit of subscribers.

APY is a social security scheme administered by PFRDA through banks and the department of post. The scheme offers guaranteed pension benefits to eligible citizens after reaching the age of 60 years, who subscribe and contribute to the scheme.

According to a PFRDA circular issued on 3 September, “The existing mode of premature withdrawal under APY is examined from time to time by PFRDA based on the inputs/suggestions received from various stakeholders and the changes are proposed with suitable technological intervention.”

Loading...

The scheme will introduce instant bank account verification in the interest of underlying subscribers for the orderly processing of their exit requests.

The following guidelines are issued for facilitating timely transfer of withdrawal amount in the bank account of APY subscribers and also as additional due diligence to protect their corpus lying in the Permanent Retirement Account Number (PRAN). 

There could be two scenarios at the time of exit which are explained as under:

Loading...

A. If the SB account details of subscribers at the time onboarding & exit are the same

1. APY subscriber should incorporate the field indicating active status of savings bank (SB) account in the revised exit file format provided by CRA which is mandatory from 15 September, 2021.

2. Instant Bank Account verification by penny drop shall also be undertaken by CRA to verify the operative status of savings account as part of enhanced due diligence.

Loading...

3. The above changes are being implemented to enable CRA system to process the premature withdrawal requests where the associated SB Account is operative so as to ensure receipt of APY account closure proceeds in the SB account, as per the PFRDA circular.

4. If the associated savings account is closed/dormant, the modified process ensures preservation of subscribers’ contribution in the PRAN itself to generate optimum market-based returns.

B. If the savings account details at the time of onboarding & exit are not the same, different account numbers of the same bank or the different bank

Loading...

1. Subscribers are advised thatAPY closure proceeds be credited to the same bank account number and may accept the request with a different account number or account of a different bank only as an exception. Such requests are to be accompanied by proof of alternate account number acceptable to the bank, as per the PFRDA circular.

2. Instant Bank Account verification by penny drop shall be undertaken by CRA as part of enhanced due diligence including name matching between PRAN and bank account number.

3. Exit requests with mismatches or with unsuccessful account verification, post penny drop is to be confirmed by respective APY subscriber for further processing of exit requests by CRA, as per the circular.

Loading...

4.Subscribers are to be educated to keep their respective bank account active when they submit their premature withdrawal request and the request is processed. A suitable undertaking can be obtained from the subscriber as part of the withdrawal request.

5. The applicable charges for instant bank account verification would be recovered by CRA from the respective PRAN for reimbursement to service provider. Prevailing charges for verifying bank account number through penny drop is Rs2.40 and tax, as per the PFRDA circular.

Loading...

Subscribe to Mint Newsletters

* Enter a valid email

* Thank you for subscribing to our newsletter.

Loading...

Never miss a story! Stay connected and informed with Mint.
Download
our App Now!!

Stay connected with us on social media platform for instant update click here to join our  Twitter, & Facebook

Loading...

We are now on Telegram. Click here to join our channel (@TechiUpdate) and stay updated with the latest Technology headlines.

For all the latest Business News Click Here 

 For the latest news and updates, follow us on Google News

Loading...

Read original article here

Denial of responsibility! TechAzi is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More