PFRDA allows paperless Aadhaar-based KYC for NPS account opening

Pension fund regulator PFRDA said it has allowed Aadhaar-based paperless KYC process for onboarding of new subscribers under the National Pension System (NPS). The PFRDA went on to add it has permitted e-NPS/Points of Presence facilities to use
offline Aadhaar of prospective subscribers with their consent for opening NPS accounts. The Aadhaar-based offline paperless KYC verification eliminates the need to provide a physical copy of the 12-digit identifier. Under the new process, an applicant can download the password-protected Aadhaar XML file by accessing the UIDAI portal through eNPS and share the same for his KYC.

"The process enables immediate activation of NPS account due to instant KYC verification and also facilitates the immediate deposit of NPS contribution by the subscriber," PFRDA said.

The facility can also be availed for opening NPS accounts through Points of Presence (POP), which are offering this facility, it added. In this process, the KYC details are in machine-readable XML format, which is digitally signed by UIDAI allowing eNPS/ POPs to verify the demographic contents of the file and certify the same to be authentic.

Hailing the PFRDA move for allowing paperless Aadhaar-based KYC; Gagan Rai, MD and CEO, NSDL e-Governance Infrastructure said, “PFRDA’s initiative allowing paperless Aadhaar-based KYC process for opening NPS account is an appropriate one and the need of the hour. Besides making the authentication process more secure with Aadhaar, this move will also help in increasing the awareness and penetration of NPS in India. World over, we are gradually witnessing a transition towards a more tech-driven paperless set-up which not only expedites the entire customer on-boarding process but also elevates customer experience. A simple, secure and seamless process will make NPS a more popular choice especially amongst the youngsters, tech savvy investors.”

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