National Pension Withdrawal and Exit Rules: The Pension Development and Regulatory Authority (PFRDA) introduces expedited bank approval through penny drop methods to ensure timely financing of the exit investment amount / deducted from the NPS account
Under the regulation, the bank deposits-per-cent model will protect registrants’ rights and early cash disbursement. It will also resolve the issue of refunds and provide the necessary supplements to claim the right.
The PFRDA noted that, on several occasions, a customer was unable to register the amount in their Savings Account (SBA) due to various reasons such as account number/type, valid/false. IFSC code, invalid name, inactive / frozen account, account. closures, etc.
Due to unsuccessful efforts, amounts are planned for permanent registrars and Trust Banks until the correct numerical value is received from them. To address this issue, the PFRDA asks CRAs to quickly inspect approved banks.
“To resolve the issue of refunds, to protect subscribers’ right to timely debit amounts, and for additional details necessary to identify the payee, Instant Bank Account Verification for ‘penny drop’ will be used by CRAs, which integrate their IT infrastructure and infrastructure for integration with technology-based service companies,” said the Director-General at a 20-day event. July 2021
The PFRDA also stated that, through the ‘penny drop’ process, the CRA would verify the operational status of the SBA and match the bank account name to the name in the PRAN (Permanent Retention Account Number) following the documents provided.
How does fast bank account approval work?
“The value of the investment is proven through a‘commercial‘model’where a penny drop is a reasonable amount for the SBA recipient and that matches the base name in the penny drop response,” Garbage said.
According to the regulation, a penny drop can occur when verification/denial of subscription requests is processed by a subscriber.
A ‘Success’ or ‘Fail’ response will be provided by the service provider based on the verification number of the SBA certification number such as CRA records.
“If bank account details and other details are incorrect, please provide an account number or other supporting documents to update records. If a penny drops unsuccessfully during the transaction, the nodal officer / POP/subscriber will be notified to correct the bank account number and resubmit the request so that deduction requests can be processed in a time-limited approach. CRAs can also use the ‘penny drop’ to register organizations whenever possible,” said the PFRDA.
The Regulator also stated that the CRAs must advise the subscriber not to change/close the bank account as soon as the withdrawal/withdrawal request is received and until the time authorized by the nodal office / POP and the number of deposits in the account.