Tax benefits under NPS, the Government Subscribers can make an additional investment in their NPS Tier I account

Tax benefits under NPS, the Government Subscribers can make an additional investment in their NPS Tier I account

Voluntary Contribution in Tier I account by Govt. Sector Subscribers

In order to avail Tax benefits under NPS, the Government Subscribers can make an additional investment in their NPS Tier I account. An additional deduction for investment up to Rs. 50,000 in NPS (Tier I account) is available exclusively to NPS subscribers. This additional investment can be made by the Subscribers by either of the following ways:

A. Through associated Nodal Office
B. Through eNPS portal
C. Through NPS Mobile App
D. By logging into the CRA System
E. Through Point of Presence (PoP)

A. Voluntary Contribution through associated Nodal Office {Pay and Accounts Office (PAO)/ Cheque Drawing and Disbursement Offices (CDDOs)}

Govt. Subscribers may approach their associated Nodal Offices (PAOs/ CDDOs) for processing of Voluntary Contributions in their Tier I account. The Nodal Office is required to carry out the following activities:

Download necessary utilities for preparation of contribution file i.e. File Preparation Utility (FPU) and File Validation Utility (FVU). Kindly note, these are separate utilities through which only Tier-II and Tier I Voluntary contributions can be prepared and validated. The utilities are available on CRA website – www.npscra.nsdl.co.in at the following link:

https://npscra.nsdl.co.in/
Prepare voluntary contribution details by using the FPU. Ensure that contribution type is selected as “Voluntary Contribution”.

Validate voluntary contribution file prepared using the FVU.

Upload Subscriber Contribution File (SCF) in the NPSCAN application (www.npscancra.com) by logging with the User ID and Internet Password (IPIN) provided by NSDLCRA. The procedure of Contribution upload will be similar to the upload of regular contribution files in NPS.
Nodal Office shall upload the SCF in respect of the Subscribers for whom clear funds are available on daily basis. The Nodal Office is required to remit the funds to the Trustee Bank latest by T+1 day (T being the date of receipt of clear funds) post upload of contribution details in the CRA system.

B. Voluntary Contribution through eNPS portal

The Subscribers can also pay voluntary contributions under Tier I online through eNPS. In order to contribute through eNPS, the Subscribers need to follow the below mentioned steps:
Visit the eNPS portal (https://enps.nsdl.com).

Click on the “Contribution” option.

On the next screen, the Subscriber will have to provide PRAN, Date of Birth, enter Captcha details and click on the “Verify PRAN” option. On clicking the “Verify PRAN” option, system will prompt for a One Time Password (OTP) and the same will be sent on the registered mobile number of the Subscriber. System will display a message to the Subscriber about generation of OTP. The Subscriber will enter the OTP and click on submit OTP option.

After submission of OTP, on the next screen the Subscriber will select the Tier Type as “Tier I” and enter the amount in “Voluntary contribution amount” section, select the “Payment Gateway Option”, tick on the declarations and finally click on “Make Payment” option.

Upon successful processing of the contribution, the units will be credited to Subscribers’ NPS account and an SMS/ Email alert will be sent to the Subscribers’ registered Mobile Number/ Email ID.

C. Voluntary Contribution through NPS Mobile App

Voluntary contribution in Tier I account can also be made using the NPS Mobile App.
NPS Mobile App can be downloaded from Playstore for android phones and Appstore for IOS phones (iPhone).

In NPS Mobile App, Subscriber is required to click on the “Contribution” option available on the Home screen.

On the next screen, Subscriber needs to enter the PRAN, Date of Birth and the Captcha details and click on “Verify PRAN” option.

App will prompt for a One Time Password (OTP) and the same will be sent to the registered mobile number of the Subscriber. App will display a message to the Subscriber about generation of OTP. The Subscriber will enter the OTP and click on submit OTP option.

After submission of OTP, on the next screen the Subscriber will select the Tier Type as “Tier I” and enter the amount, select the “Payment Gateway Option”, tick on the declarations and finally click on “Confirm Payment” option.

Upon successful payment, a receipt will get generated confirming the payment details.

D. Voluntary contribution by logging into the CRA System
One more option for Subscribers to contribute voluntarily in Tier I account is by logging into the CRA System with the User ID (i.e. the PRAN) and the Internet Password (IPIN).
In the CRA system, at the Home page, the Subscriber needs to go to Menu – Contribute Online <<>> Sub-menu - Make Online Contribution.

System will re-direct the Subscriber to the eNPS portal.
Further, the Subscriber needs to follow the procedure as explained under Point C above.

E. Voluntary contribution through Point of Presence (PoP)/ Point of PresenceService Providers (PoP-SP)
Subscribers may also approach the PoP/ PoP-SPs for making Voluntary Contribution in their Tier I account.

The list of PoPs/ PoP-SPs is available on CRA website (www.npscra.nsdl.co.in).

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Total subscribers that contribute throughout the month - NPS - NATIONAL PENSION SYSTEM

Total subscribers that contribute throughout the month - NPS - NATIONAL PENSION SYSTEM

Age Band	Total Existing Subscribers contributing during the month (Table A)
-	Male	Female	Transgender	NON IRA	Total
18-21 Years	22,501	7,514	-	-	30,015
22-25 Years	2,80,574	74,554	-	-	3,55,128
26-28 Years	5,91,061	1,52,324	3	-	7,43,388
29-35 Years	17,03,030	4,79,873	9	-	21,82,912
>35 Years	16,94,343	5,48,911	10	-	22,43,264
NON- IRA	-	-	-	15,976	15,976
Total	42,91,509	12,63,176	22	15,976	55,70,683

New Subscribers contributing during month (Table B)
Central Govt
Male	Female	Transgender	NON- IRA	Total
462	63	-	-	525
2,569	347	-	-	2,916
2,319	382	-	-	2,701
2,012	393	-	-	2,405
869	260	-	-	1,129
-	-	-	-	-
8,231	1,445	-	-	9,676

New Subscribers contributing during month (Table B)
State Govt
Male	Female	Transgender	NON- IRA	Total
2,606	1,459	-	-	4,065
10,164	4,310	-	-	14,474
7,298	3,571	-	-	10,869
11,830	7,079	-	-	18,909
13,001	6,258	-	-	19,259
-	-	-	2	2
44,899	22,677	-	2	12,381

New Subscribers contributing during month (Table B)
Non-Govt (Corporate Sector)
Male	Female	Transgender	NON- IRA	Total
85	60	-	-	145
2,313	1,158	-	-	3,471
1,987	629	-	-	2,616
3,374	475	-	-	3,849
4,622	539	2	-	5,163
-	-	-	-	-
12,381	2,861	2	-	15,244

1. PRAN association with respective sectors is as on March 31, 2019
2. Central Govt and State Govt includes Central and State Autonomous Bodies respectively.
3. All types of Contribution credit is considered in the above data.
4. As DOB and Gender of Subscriber is not available for NON IRA PRANs, additional category "NON IRA" is included in the above tables.
5. Table A refers to unique PRANs receiving credit (in the reporting month) for Central/State and Corporate Subscribers, irrespective of type of contribution.
6. Table B refers to unique PRAN receiving first credit (in the reporting month) in respective sectors, irrespective of type of contribution. This data is subset of data in Table A.
7. NPS was launched on 01 Jan'04 and was aimed at individuals newly employed with central and state government, but excluding. ones in the armed forces.
8. "Non-Govt" refers to Corporate sector employees".
9. Includes NSDL CRA & KARVY CRA data.
10. Non - Govt PRAN data may not necessarily represent new employment as there may be some persons who were in employment earlier but have opened PRAN now.

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14 percent of the Basic Pay plus DA by the Central Government Contribution in NPS - Gazette Notification

14 percent of the Basic Pay plus DA by the Central Government Contribution in NPS - Gazette Notification

The monthly contribution would be 10 percent of the Basic Pay plus Dearness Allowance (DA) to be paid by the employee and 14 percent of the Basic Pay plus DA by the Central Government

MINISTRY OF FINANCE
(Department of Financial Services)

NOTIFICATION

New Delhi, the 31st January, 2019

F. No. 1/3/2016-PR - In partial modification of para 1(i) of Ministry of Finance’s Gazette Notification No. 5/7/2003-ECB-PR dated 22nd December, 2003, based on the Government’s decision on 6th December, 2018 on the recommendations of a Committee set up to suggest measures for streamlining the implementation of National Pension System (NPS), the Central Government makes the following amendments in the said notification, namely :-

(1) In para 1(i) of the said notification, for the words “The monthly contribution would be 10 percent of the salary and DA to be paid by the employee and matched by the Central Government”, the words “The monthly contribution would be 10 percent of the Basic Pay plus Dearness Allowance (DA) to be paid by the employee and 14 percent of the Basic Pay plus DA by the Central Government” shall be substituted.

(2) The following provisions shall be inserted after para 1(v) of the said notification, namely:-
CHOICE OF PENSION FUND AND INVESTMENT PATTERN IN TIER-I OF NPS AS UNDER:

(vi) Choice of Pension Fund: As in the case of subscribers in the private sector, the Government subscribers may also be allowed to choose any one of the pension funds including Private sector pension funds. They could change their option once in a year. However, the current provision of combination of the Public-Sector Pension Funds will be available as the default option for both existing as well as new Government subscribers.

(vii) Choice of Investment pattern: The following options for investment choices may be offered to Government employees :

• The existing scheme in which funds are allocated by the PFRDA among the three Public Sector Undertaking fund managers based on their past performance in accordance with the guidelines of PFRDA for Government employees may continue as default scheme for both existing and new subscribers.
• Government employees who prefer a fixed return with minimum amount of risk may be given an option to invest 100% of the funds in Government securities (Scheme G).
• Government employees who prefer higher returns may be given the options of the following two Life Cycle based schemes.

(A) Conservative Life Cycle Fund with maximum exposure to equity capped at 25% - LC-25.

(B) Moderate Life Cycle Fund with maximum exposure to equity capped at 50% - LC-50.

(viii) Implementation of choices to the legacy corpus: Transfer of a huge legacy corpus of more than Rs. 1 lakh crore in respect of the Government sector subscribers from the existing Pension Fund Managers is likely to impact the market. It may be practically difficult for the PFRDA to allow Government subscribers to change the Pension Funds or investment pattern in respect of the accumulated corpus, in one go. Therefore, for the present, change in the Pension Funds or investment pattern may be allowed in respect of incremental flows only.

(ix) Transfer of legacy corpus in a reasonable time frame: PFRDA may draw up a scheme for transfer of accumulated corpus as per new choices of Government subscribers in a reasonable time frame of say five years. Once PFRDA draws up this scheme, change in the Pension Funds or investment pattern may be allowed in respect of the accumulated corpus in accordance with that scheme.

4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART I-SEC. 1] COMPENSATION FOR NON-DEPOSIT OR DELAYED DEPOSIT OF CONTRIBUTIONS DURING 2004-2012:

(x) In all cases, where the NPS contributions were deducted from the salary of the Government employee but the amount was not remitted to CRA system or was remitted late, the amount may be credited to the NPS account of the employee along with interest for the period from the date on which
the deductions were made till the date the amount was credited to the NPS account of the employee, as per the rates applicable to GPF from time to time, compounded annually.

(xi) In all cases where the NPS contributions were not deducted from the salary of the Government employee for any period during 2004-2012, the employee may be given an option to deposit the amount of employee contribution now. In case he opts to deposit the contributions now, the amount may be deposited in one lump sum or in monthly installments. The amount of installment may be deducted from the salary of the Government employee and deposited in his NPS account. The same may qualify for tax concessions under the Income Tax Act as applicable to the mandatory contributions of the employee.

(xii) In all cases where the Government contributions were not remitted to CRA system or were remitted late (irrespective whether the employee contributions were deducted or not), the amount of Government contributions may be credited to the NPS account of the employee along with interest for the period from the date on which the Government contributions were due till the date the amount is actually credited to the NPS account of the employee, as per the rates applicable to GPF from time to time. Instructions to this effect may be issued by the Department of Expenditure/ Controller General of Accounts. All such cases of delay may be resolved within a period of three months.
The above provisions shall come into force with effect from 1st April, 2019.

MADNESH KUMAR MISHRA, Jt. Secy.

Note : The main notification was published in the Gazette of India, Extraordinary, Part-I, Section 1, vide notification No. 5/7/2003-PR dated the 22nd December, 2003

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Online Submission of FATCA Self-Certification

Online Submission of FATCA Self-Certification

Subscribers registered on or after July 1, 2014 are mandatorily required to submit FATCA Self-certification
Please follow the steps given below for online Self-Certification:

• Log-in to your NPS account (please visit www.cra-nsdl.com)
• Click on sub menu "FATCA Self-Certification" under the main menu "Transaction"
• Submit the required details under "FATCA/CRS Declaration Form"
• Click on "Submit"
• You are requested to read and tick "Declaration & Authorization by all customers"
• Click on "Confirm"
• Enter OTP received on your registered mobile number.
• After Authentication through OTP, Acknowledgment for the completion of FATCA Self-certification will be displayed.

You are requested to provide Online Self-certification even if you have submitted /sent the physical Self-Certification form to CRA

Kindly note, you are required to submit physical FATCA Self-certification form to your Nodal Office or CRA if your Birth Place, Citizenship and Residence for the Tax Purposes is other than India or you are an US person. The format of the self-certification is provided in below link.

The form is required to be submitted to Central Recordkeeping Agency (CRA) for NPS at the following address:

NSDL e-Governance Infrastructure Limited,
1st Floor, Times Tower, Kamala Mills Compound, Senapati Bapat Marg,
Lower Parel, Mumbai - 400 013

In case you require any clarification or assistance with respect to the above, please contact Ms. Ranjana Chavan / Ms. Mamta Jadhav at 022-40904242.

Please mention "Self-Certification - FATCA/CRS Declaration Form" on top of the envelope
Self-induced contribution (Voluntary and Tier II) and Withdrawal will not be allowed in the CRA system for FATCA non-compliant Subscribers.

Source: https://www.npscra.nsdl.co.in/

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Partial Withdrawal under NPS

Ministry of Finance

Partial Withdrawal under NPS

06 MAR 2018

The Pension Fund Regulatory Development Authority (PFRDA) has relaxed the norms for partial withdrawal under the National Pension Scheme (NPS). In accordance with the PFRDA (Exits and Withdrawals under the National Pension System) (First Amendment) Regulations 2017, the subscriber ought to be subscribed to the National Pension System, at least for a period of three years from the date of his or her joining to such system, to be eligible to make partial withdrawals, under specific circumstances as specified in such regulations.

The NPS subscribers can withdraw after three years from the date of joining the system and a maximum of three times during the entire tenure of subscription under NPS, but the partial withdrawal is linked with contributions made by the subscriber. The subscriber shall be permitted to withdraw accumulations not exceeding twenty-five per cent of the contributions made by him or her and standing to his or her credit in his or her individual pension account, as on the date of application for withdrawal.

Earlier the subscriber under NPS was permitted to withdraw accumulations not exceeding twenty-five per cent of the contributions made by him or her after 10 years from the date of his or her joining the system, and a maximum of three times during the entire tenure of subscription under NPS.

This was stated by Shri Shiv Pratap Shukla, Minister of State for Finance in written reply to a question in Rajya Sabha today.

PIB

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Additional benefit on death/disability of Government servant covered by NPS

Additional benefit on death/disability of Government servant covered by NPS

"It is once again reiterated that the aforesaid instructions may be followed scrupulously and to review all the cases for ensuring the payment of family pension, disability pension and extra-ordinary pension to the NPS subscribers in case of death/disability"

GOVERNMENT OF INDIA (BHARAT SARKAR)
MINISTRY OF RAILWAYS (RAIL MANTRALAYA)
(RAILWAY BOARD)

No.2012/F(E)111/1(1)/4

New Delhi, Dated: 23/08/2017

The GMs/FA & CAOs,
All Zonal Railways/Production Units.

Subject: Additional benefit on death/disability of Government servant covered by New Pension System - clarification regarding.

Please refer to the instructions issued vide Board’s letters No. 2008/AC-II/21/19, dated 29/05/2009, No.2010/AC-II/21/18 dated 02/07/2013 and 13/07/2010, letters of even number dated 08/09/2014 and 13/01/2016 on the above mentioned subject.

2. Now, one of the recognized Federations (NFIR) have again raised the issue of non- compliance of the above instructions by Zonal Railways and reluctance on the part of Railways in providing additional relief to the widows of NPS subscribers/ NPS subscribers who have been declared invalidated. The Federation have also stated that Zonal administrations are not taking initiatives to ensure additional relief in terms DOP&PW’s D.M. dated 05/05/2009 and that they are reluctant in providing additional relief on death and disability of NPS subscribers.

3. It is once again reiterated that the aforesaid instructions may be followed scrupulously and to review all the cases for ensuring the payment of family pension, disability pension and extra-ordinary pension to the NPS subscribers in case of death/disability. Further, Zonal Railways are also advised to sensitize the administration at lower level towards the problems faced by the employees and their families.

sd/-
(G.Priya Sudarsani)
Joint Director, Finance (Estt.),
Railway Board.

Authority: http://www.indianrailways.gov.in/

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National Pension System - New Functionalities to provide benefits of subscribers and nodal offices

National Pension System - New Functionalities to provide benefits of subscribers and nodal offices

Pension Fund Regulatory and Development Authority (PFRDA) takes various initiatives from time to time in order to simplify and improve the operational issues in National Pension System (NPS) like new functionality development under NPS architecture, simplification of account opening, withdrawal, grievance management etc. In this regard, recently many new functionalities have been released by the Central Recordkeeping Agency (CRA) to provide the ease of operation for the benefit of subscribers and nodal offices. These are detailed below:

Functionalities for NPS subscribers:

S.N	Functionalities	Brief Description
1	Online Submission of Foreign Account Tax Compliance Act (FATCA) Declaration	In-order to facilitate quick FATCA compliance, facility to submit online FATCA Self-declaration has been provided to the subscriber in their CRA login (www.cra-nsdl.com). The information regarding the said functionality is also made available on CRA websites. The steps to be followed by the subscriber to submit online FATCA self-declaration are also available on the website.
2	Interoperability between CRAs	Karvy Computershare Pvt. Ltd. (KCRA) was selected as a second CRA under NPS. Now, Subscribers/ Nodal Offices have option to open permanent retirement account with either of the CRAs. The existing Subscriber can also select CRA of his/her choice. To facilitate migration of Subscriber across CRAs (Karvy- CRA to NSDL- CRA and NSDL-CRA to Karvy- CRA), the CRA Interoperability functionality has been developed. The Subscriber will be required to approach target CRA to initiate the shifting request, the target CRA will facilitate the shifting request under NPS. Inter CRA shifting request will be allowed once in a financial year.
3.	New features under eNPS	1. Hindi version of eNPS module The bilingual version of eNPS module has been developed for convenience of NPS Subscriber. The Subscriber shall have option to choose the desired language option (either English or Hindi) for Registration and/or Contribution through eNPS. 2. eSign for Aadhaar based Registration In case of registration through Aadhaar, it was mandatory for Subscriber to submit physical Application Form within 90 days of completion of registration under eNPS. eSign facility (Aadhaar e-KYC services) has been integrated with eNPS platform to enable the Subscriber to sign his/her PRAN Application electronically. This process has eliminated the requirement of submission of physical documents to CRA. 3. New Payment Gateway - Bill Desk In eNPS, along with SBI ePay, Bill Desk has been integrated as the second Payment Gateway Service Provider. This will help the Subscriber to make payment through any service provider as per his/her choice by selecting the available payment options. Addition of Billdesk as new payment gateway has ensured participation of new banks which were not part of SBl e-Payment gateway especially AXIS Bank and HDFC Bank.
4.	New features in NPS Mobile App	1. Tier II Withdrawal Subscriber can now initiate Tier II account withdrawal under NPS using Mobile App. The Subscriber will log into the App with their User ID and password. An option to select Tier II withdrawal and generate One Time Password (OTP) is available in Mobile App. On entering the correct OTP, Subscriber will have an option to select mode of Withdrawal - (i) lump sum (amount), or (ii) scheme wise units. Once the option is selected and relevant details are submitted by the Subscriber, the same will get executed in the CRA system and funds will get transferred to Subscriber's Bank Account registered with CRA. 2. Aadhaar Seeding The Subscriber can now link his/her Aadhaar to NPS account using Mobile App. The Subscriber will log into the App with his/her User ID & password and select the option of ‘Add/Update Aadhaar Number'. The option will be available to the Subscriber to provide his/her Aadhaar. Once Aadhaar is entered, the details of Subscriber registered under NPS will get authenticated with details available in UIDAI database. Post authentication, an OTP will be sent to the Subscriber's mobile number registered with UIDAI. The Subscriber will enter the OTP and on entering the correct OTP, Aadhaar will get seeded for the PRAN. 3. Reset password using OTP Subscriber can now reset his/her password using Mobile App through OTP. The Subscriber is required to enter his/her PRAN, Date of Birth and set his/her new password and generate OTP. On entering the correct OTP received on his/her mobile (registered with CRA), the password becomes active. This option is in addition to the option of resetting password using secret question.
5.	New features under Atal Pension Yojana (APY)	1. ePRAN Card and Transaction Statement The facility to download and/or print ePRAN Card and Transaction Statement is made available to APY Subscriber. The APY Subscriber can access their ePRAN Card and Transaction Statement through CRA NPS Lite website (www.npslite- nsdl.com). The Subscriber have an option to search their ePRAN Card and Transaction Statement with/without PRAN details. The Subscriber are then required to provide minimum details like PRAN and Bank Account Number or Subscriber Name, Bank Account Number and Date or birth registered in the CRA system under APY. 2. Alert for Grievances An Email/SMS alert (along with Token No.) is sent to APY Subscriber on generation and resolution of a grievance in CRA system.

Functionalities for Nodal Offices:

S. N.	Functionalities	Brief Description
1.	Online Subscriber Registration by DDOs	The facility to register Subscriber online using Online PRAN Generation Module (OPGM) is made available to Drawing and Disbursing Office (DDOs) for Government Sector. The DDOs can capture the Subscriber registration details online in the CRA system.  The details entered by DDO needs to be verified by associated PAOs. On verification of registration details in the CRA system, PRAN gets generated online. This facility is an extension to the functionality already available with Pay & Account Offices (PAOs).
2.	Enhancement in Central Grievance Management System (CGMS)	1. Standard Frequently Asked Questions (FAQs) along with answers against respective query category are now available to Subscriber & Entity (raising grievance on behalf of NPS Subscriber) in CGMS. The Subscriber raising any query through CGMS will have a provision to view the FAQs & relevant answers based on the category of grievance selected. 2. The fortnightly email alerts are sent to the Nodal Office for pending grievances. Now, these alerts are enhanced to have the details of all pending grievances. 3. A facility is provided to Nodal Office under NPS Lite and APY to download the pending referrals for associated Subscriber. Also, email alerts will be sent to NPS Lite and APY Offices for all grievances raised & resolved during the day. 4. The fortnightly email alerts will be sent to Oversight Offices under NPS Lite and APY regarding the grievances which are pending for more than 15 days under CGMS.
3.	Error Rectification Module (ERM)	An ERM request can be processed by the Nodal Office through whom the contributions were uploaded in CRA system. In addition, now in case of State Govt., the facility to perform a single ERM transaction on behalf of all the underlying Nodal Offices is provided to the Oversight Office. This will save efforts and time of multiple ERM requests being captured by different Nodal Offices.
4.	Online Corporate Registration	A facility for online registration is enabled for Corporates through eNPS platform. Corporate is required to provide the requisite registration details and select a POP for association and submission of the relevant documents for further processing. The registration details captured by the Corporate are to be authorized by associated POP.
5.	Retirement Adviser:	The Retirement Advisers (RAs) are appointed by PFRDA to engage in the activity of providing advice on NPS thereby to extend the reach of NPS. The RAs can be an individual, registered partnership firm, body corporate, or any registered Trust or society. The online platform has been developed and released in the CRA system to facilitate registration of an individual/entity as RA.
6.	Withdrawal Reports / MIS in Nodal Office login	Additional reports related to Withdrawal have now been made available to Nodal Offices for better monitoring: a) Physical withdrawal forms received but online withdrawal request not processed b) Non Receipt of Physical Forms for online withdrawal processed cases c) Online withdrawal requests pending for authorization
7.	New CRA Toll Free Helpline	Dedicated toll free number (1800222081) is made available to Nodal Offices for contacting CRA regarding their general queries / complaints. This is in addition to an existing toll free number (1800222080) available for NPS Subscribers.

Source : PIB

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New Pension System - Features released recently for NPS Subscribers

New Pension System - Features released recently for NPS Subscribers

New Pension System (NPS) and its-implementation

GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
(RAILWAY BOARD)

RBA No. :54/2016
New Delhi, dated: . 16.08.2016

No.2016/AC-II/21/7

General Managers, FA&CAOS and CPOs,
All Indian Railways. and PUs

Sub: New Pension System (NPS) and its-implementation.

Please find enclosed PFRDA’S letter no. PFRDA/19/CG/1/39 dated 01.08.2016 on the above subject. In this regard, the “following has been desired:

i. Distribution of comprehensive brochure prepared by PFRDA for government Sector subscribers.

ii. Updation of contact details of all the underlying offices in the records of CRA for better communication flow.

iii Setting up of dedicated NPS Cell

iv. Displaying related information on the website of in the Ministry and incorporating the same link in the ‘Employee’s corner’.

As regards (iv.) above, all, the important instructions issued by Accounts Dte are available on the Indian Railway’s website as under:

www.indianrailways.gov.in
↓
About Indian Railways
↓
Railway Board Directorates
↓
Accounts
↓
Instructions on NPS

Kindly ensure circulation of these instructions so that the subscribers and nodal. offices are aware of initiatives taken for their benefit.

DA: As above

sd/-
(Amitesh Kumar Sinha)
Director Finance/CCA

Railway Board

PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY
b-14/A, First Floor, Chhatrapati Shivaji Bhawan,
Qutab Institutional Area, Katwaria Sarai, New Delhi-110016

R.V. Verma
Member

FILE NO. PFRDA/19/CG/1/39

01st August, 2016

Subject: National Pension System (NPS) and its implementation.

I am writing in the context of the National Pension System (NPS) and its implementation in the Central Government sector - Ministries & departments including the Central Autonomous Bodies under their jurisdiction. I would like to highlight the important measures taken by PFRDA in strengthening the systems, in the interest of the ultimate beneficiary- the subscriber and other stakeholders.

2. After the passage of PFRDA Act, 2013, various regulations have been framed by PFRDA under the ambit of the Act. The basic purpose of framing regulations is to ensure protection of subscriber interest. Prominent ones among the regulations are PFRDA (Redressal of Subscriber Grievance) Regulations, 2015 and PFRDA (Exits Withdrawals under the NPS) Regulations, 2015. You will appreciate that PFRDA (Redressal of Subscriber Grievance) Regulations, 2015, had laid down clear guidelines with respect to redressal of subscriber grievances. Further, Exit Regulations of PFRDA have specified the provisions and process relating to exit and withdrawal in detail.

3. It has been PFRDA’S endeavour to take various initiatives from time to time in order to simplify and improve the operational issues in National Pension System (NPS) for ease of transaction for subscribers. Towards this end, we have introduced a number of new functionalities under NPS architecture such as simplification of account opening, withdrawal, grievance management etc. In this regard, recently many new functionalities have been released by the Central Recordkeeping Agency (CRA) to ease operations for the benefit of subscribers and nodal offices. The details of the functionalities released recently for the nodal offices under Govt. Sector are enclosed as Annexure A.

4. As our main focus is on the subscriber, around whom the entire system revolves, we have also provided several facilities to them for easing the process and making them more user friendly. The following are the important initiatives taken in this direction:

(i) SMS and email alerts,

(ii) Centralized Grievance Management System (CGMS) with a pre-determined turnaround time for resolution of grievances related to different services.

(iii) Call Centre facility.

(iv) Periodic consolidated SoT (Statement of Transactions)

(v) Web based access to all subscribers to view SoTs and facility to modify certain data like mobile number & email id on their own.

(vi) Subscriber awareness programs at various locations and centers.

In addition to the above, several new functionalities have also been introduced in the CRA system for the benefit of the subscribers. The details of the same are enclosed as Annexure B.

5. We would very much appreciate if the Central Government ministries departments may undertake the following measures to enhance the effectiveness of the system:

(a) Distribution of comprehensive brochure prepared by PFRDA for government sector subscribers (copy enclosed).

(b) Updation of contact details of all the underlying offices in the records of CRA for better communication flow.

(c) Setting up of a dedicated NPS Cell

(d).Displaying NPS related information on the website of your Ministry and incorporating the same in link like ‘ Employee’s corner’.

6. We feel that there is urgent need to disseminate more information among the dealing officials -Pay & Accounts Offices(PAOs) Drawing & Disbursing officers (DDOs) of the CG Ministries & Departments for resolving the concerns and covering the gaps. We have recently engaged Crux Management Services Pvt. Ltd. as a training agency for imparting training to the nodal officers of CG Ministries/ Departments. We request you to nominate maximum number of DDOs from your Ministry to the training programmes which PFRDA is coordinating. Besides, workshops may be organized by CG Ministries & Department for their respective nodal offices also in order to increase

subscriber awareness and for imparting operational knowledge to PrAOs/PAOs/DDOs, wherein PF RDA and CRA officials may also participate.

We are confident that the implementation of NPS and streamlining .of the process is receiving your due attention. You may like to convene regular meetings to review the implementation of NPS and the new fun’ctionalities which wrll go a long way in ensuring smooth implementation of NPS. PFRDA will be glad to provide all necessary support and cooperation. Should your office need further clarifications, they are welcome to contact Sh. Ashish Kumar, General Manager at ashish.kumar@pfrda org.in.

With Regards,

Yours sincerely
sd/-
(R.V.Verma)

Mr. S. Mookerjee,
Financial Commissioner
Ministry of Railways,
Room No.232, Rail Bhavan,
New Delhi - 110001.

Encl.: A/a

Annexure A

Functionality for nodal offices on Tier-II

operations and voluntary contribution processing under Tier-I

	The Govt. Sector Nodal Offices have now been provided with utility for activating the Tier II account and its operation for all Government employees. The Government subscribers (mandatorily covered under NPS) can also approach their “associated Nodal Office for making additional investment (Voluntary Contributions) in their PRAN - Tier I account in order to claim tax benefits.
Upload of unequal contribution for Govt. employees	In, case of Govt. sector employees, the Nodal Office is required to prepare and upload the contribution file wherein the Employee and Employer Contribution are equal for each subscriber. This functionality will now allow the Nodal Offices to prepare and upload contribution files where Employer and Employee contribution amount are not. same due to various exceptional reasons.
Insertion of QR Code facility on backside of PRAN	For new PRAN cards, a Quick Response (QR) code will be inserted, which when scanned on a smart phone will enable easy access to CRA website for any information on NPS.
Grievance resolution by monitoring office in CRA system	In case of Govt. Sector Nodal offices, only the PAOs/DTOs can provide resolution remarks for the grievances raised against them by ‘ their associated subscribers in Central Grievance Management System (CG-MS) module. However, the mapped Pr.AOs/DTAs can only monitor the status of the grievances (using ‘Token No’) raised against underlying PAOs/DTOs. Now, with the new facility made available in the CRA system, the Pr.AOs/DTAs can verify whether the PAO/DTO has resolved the grievance.
Pop-Up window for resolution of pending grievance in CRA system	To aid the Nodal Offices, a pop-up alert is displayed on the home page immediately after the User logs in to CRA website (www.cra-nsdl.com). The pop-up displays the count of grievances pending (if any) for more than 30 days. The User has two options i.e., either to resolve the grievances immediately by selecting the option ‘Resolve Now’ (which will guide the user to ‘grievance resolution’ screen) or to select ‘Resolve Later’ to continue with regular operations and provide resolutions to the grievances later, The pop-up window is a reminder to all the Nodal Offices which have any grievance pending for resolution beyond 30 days in Central
Grievance Management system (CGMS) module.	Functionality for capturing bank details and contact details of the nodal offices  ‘A facility has been provided to Nodal Offices of Central Government to enter the contact details of their Nodal Officer (along with details of alternate Nodal Officer) and the Bank account details of respective Nodal Office in CRA system. This will help Trustee Bank and CRA to identify the nodal offices for better coordination.
Login facility for, DDOs in CRA system	The DDOs can login the CRA system using User ID & I-PIN (password). The DDOs can generate their l-PIN by capturing a request through instant reset option in the CRA system (www.cra-nsdl.com) and getting it authorized by their associated Nodal Office (PAOs/DTOs). This facility has been granted to the DDOs to enable them to view various reports, which is quite helpful in day to day functioning.

Annexure B

Features released recently for NPS Subscribers

1. Mobile App
Mobile App for NPS’ is nowavailable to the Subscriber’s in ’Google Play Store’ as NPS by NSDL e-Gov’ for installation and use. The following features are available to the Subscribers in Mobile App:

a) Transaction Statement: Using this feature, Subscriber will be able to raise the request for Transaction Statement for a. particular financial year. The statement will be sent to the Subscriber’s registered mail ID at end of the day.

b) Account details view: Subscriber can view his / her NPS account details.

c) Statement of Holding view: Details of scheme Wise units alongwith latest NAV and the total value of the schemes (as on date) is available.

d) View of last 5 contributions: Details of the last five contributions credited will be available i.e.,‘ credit date, tier type, amount and. contribution remarks.

e) Change in contact details (Telephone/ Mobile no./ email ID): At present, Subscriber can change his/ her contact details in CRA system using login credential. The same feature has been extended in Mobile App.

f) Change password/ Security Question: Subscriber can add / modify his her password and set security question (for password reset) through Mobile App. Subscriber will also be able to reset his/ her password by answering secret questions.

g) Notifications: Notifications, if any, from CRA will be available to the Subscriber. Short messages will be displayed here.

2. Change of address using Aadhaar authentication
The Subscribers can now update/modify their address on their own using Aadhaar based authentication. After logging in CRA, Subscriber will use the menu Update Address”. After clicking on the menu ”Update Address”, Subscriber will prevode the Aadhaar No and “click on the ’submit’ button. ‘On clicking on submit button, ‘ an OTP will be sent to Subscriber’s mobile. Once the Subscriber authenticates by submitting the OTP, address details from Aadhaar system will be fetched and updated in the CRA system. In this process, Subscriber will be able to update permanent as well as correspondence address. At present, this feature has been made available to All Citizens of India and Corporate sector. It will be extended to Government Subscriber Shortly.

3. Scheme Preference change facility
The NPS Subscribers associated to All Citizens of India (UoS), Corporate sector and Government sector (for Tier‘SII-only) can now change their Scheme Preference after logging in. An OTP will be sent to the Subscriber (on their registered mobile number) once Subscriber topts to change his / her Scheme Preference. After authentication is done with OTP, the Subscriber can change their PFM, Asset Class, Allocation ratio, Scheme Options.

4. Tier II activation through eNPS
Any subscriber having Tier I account in NPS can now activate Tier II account online through eNPS. To initiate the Tier‘II activation, Subscriber has to enter his/her PRAN, DOB and PAN. An OTP will be generated and will be sent to the registered mobile number. Subscriber has to enter the OTP and proceed for Tier II activation under

5. KYC re-verification using Aadhaar authentication
A Subscriber whose Bank has not confirmed (rejected) his / her KYC verification request can now update the address details and confirm KYC using Aadhaar based authentication. The Subscriber need to simply go to eNPS site, click on Update details and proceed.

6. Facility to contribute Online
Subscribers are contributing through online mode using eNPS portal of. NPS Trust. Now, a facility has been made available to contribute online by Subscribers using IPIN credentials in CRA system. Subscriber can login into the CRA system and click to ”Contribution” menu. On submission, the Subscriber will be redirected to eNPS contribution page from Where he / she can contribute as per existing process of eNPS.

7. Withdrawal from Tier II account
At present, for Withdrawal from Tier II account, the NPS subscribers are required to visit the branch of the’ Point of Presence (POPS) or Nodal Office which is mapped to him / her. Now, the NPS Subscribers have a facility to initiate Withdrawal request from Tier II account using their login credentials and OTP authentication on registered mobile number.

8. Online IPIN generation
The eNPS Subscribers can now access the CRA system immediately after registering without waiting for physical I-PIN to be despatched. Facility is now available where the Subscriber will generate I-PIN instantly and access his/her NPS account.

Source: http://www.indianrailways.gov.in/

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New Features Released For NPS Subscribers

New Features Released For NPS Subscribers

Pension Fund Regulatory and Development Authority (PFRDA) takes various initiatives from time to time in order to simplify and improve the operational issues in National Pension System (NPS) like new functionality development under NPS architecture, simplification of account opening, withdrawal, grievance management etc. In this regard, recently many new functionalities have been released to provide the ease of operation for the benefit of subscribers and nodal offices. These are detailed below:

Functionality released recently for the benefit of NPS subscribers: 

S. No.	Functionalities	Benefits Description
1	Mobile Application Mobile Application for NPS is now available to the Subscriber’s in ‘Google Play Store’ as ‘NPS by NSDL e-Gov’ for installation and use.	In Mobile App, the Subscriber will be able to raise the request for Transaction Statement for a particular financial year which will be sent to his registered mail ID at end of the day, can view his/her NPS account, latest details of scheme wise units along with latest NAV and the total value of the schemes, details of the last five contributions credited,  can change contact details (Telephone/Mobile no./Email ID), change password/security Question add/modify his/her password and set security question (for password reset) through Mobile App. Notifications, if any, from CRA will be available to the Subscriber. Short messages will be displayed here.
2	Change of address using Aadhaar authentication	The Subscribers can now update/modify their address on their own using Aadhaar based authentication. After logging in CRA, Subscriber will use the menu “Update Address” by providing the Aadhaar No and click on the ‘submit’ button. After which an OTP will be sent to Subscriber’s mobile. Once the Subscriber authenticates by submitting the OTP, address details from Aadhaar system will be fetched and updated in the CRA system. In this process, Subscriber will be able to update permanent as well as correspondence address.
3	Scheme Preference change facility	Once Subscriber opts to change his / her Scheme Preference after logging in, an OTP will be sent to the Subscriber (on their registered mobile number). After authentication is done with OTP, the Subscriber can change their PFM, Asset Class, Allocation Ratio, Scheme Options.
4	Tier II activation through eNPS	Any subscriber having Tier I account in NPS can now activate Tier II account online through eNPS by entering his / her PRAN, DOB and PAN. An OTP will be generated and will be sent to the registered mobile number. Subscriber has to enter the OTP and proceed for Tier II activation under NPS.
5	KYC re-verification using Aadhaar authentication	A Subscriber whose Bank has not confirmed (rejected) his / her KYC verification request can now update the address details and confirm KYC using Aadhaar based authentication. The Subscriber needs to simply go to eNPS site, click on Update details and proceed.
6	Facility to contribute Online	Subscribers are contributing through online mode using eNPS portal of NPS Trust. Now, a facility has been made available to contribute online by Subscribers using IPIN credentials in CRA system. Subscriber can login into the CRA system and click on “Contribution” menu. On submission, the Subscriber will be redirected to eNPS contribution page from where he / she can contribute as per existing process of eNPS.
7	Withdrawal from Tier II account	At present, for Withdrawal from Tier II account, the NPS subscribers are required to visit the branch of the associated Point of Presence (POPs) or Nodal Office. Now, the NPS Subscribers have a facility to initiate withdrawal request from Tier II account using their login credentials and OTP authentication on registered mobile number.
8	Online IPIN generation	The eNPS Subscribers can now access the CRA system immediately after registering without waiting for physical I-PIN to be despatched. Facility is now available where the Subscriber will generate I-PIN instantly and access his / her NPS account.

Currently, NPS and APY together have 1.29 crore subscribers with total Asset under Management (AUM) of 1.34 lakh crore.

 Source : PIB

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Online Subscriber Registration and contribution under NPS using eNPS platform

Online Subscriber Registration and contribution under NPS using eNPS platform

In light of Prime Minister’s “Digital India” campaign on promoting e-governance for providing last mile connectivity through extensive use of ICT (Information and Communications Technology) platforms, Pension Fund Regulatory and Development Authority (PFRDA) has been pursuing the development and operationalization of online transaction facilities for the prospective as well as existing subscribers of NPS.

PFRDA introduced eNPS online portal whereby PAN (Permanent Account Number) and savings bank account of new subscribers to NPS who are already customers of the banks are accepted as KYC with active participation of the banks acting as POPs for opening of accounts under NPS.

PFRDA has received feedback from prospective subscribers and other stakeholders that those who voluntarily seek to use Aadhaar as their document of identity for availing of the eNPS online platform to join NPS should not be deprived of this eNPS facility.

As the identity and address for such account holders is established through e-KYC facility with the express consent of the subscriber through One Time Password (OTP) and as Aadhaar is a unique number, its use as a KYC document rules out the possibility of opening duplicate retirement (PRAN) accounts. PFRDA has accordingly revisited the issue and believes that enabling eAadhaar in addition to PAN and bank account based KYC for the eNPS platform can reduce the cost and time of operation and ensure wider coverage to the citizens of India under the old age income security schemes and thus help in fulfilling the mandate given to it under the provisions of the PFRDA Act, 2013.

PFRDA has accordingly modified the eNPS functionality to accept PAN and bank account or eAadhaar as the KYC document for online registration of subscribers under NPS. With the operationalization of this modified eNPS platform, the subscriber will now have the following options for opening of account:

• Opening of account through any of the Points-of- Presence- Service Provider (POP-SP).

• Opening of account online using PAN and net banking of the selected bank. In this case KYC verification is done by the Bank. The PRAN gets activated only after KYC verification by bank.

• Opening of account online using Aadhaar No. and OTP received from UIDAI. In this case, the subscriber can instantly get their PRAN generated and can contribute.

The eNPS platform using Aadhaar based KYC verification is one of the options for any prospective subscriber to join NPS and it is optional and purely voluntary on the part of the prospective subscriber.

To register under NPS through eNPS using Aadhaar, the prospective subscriber needs to have Aadhaar Number/Card with access to the mobile number registered with Aadhaar.

With the use of this Aadhaar based KYC verification, the subscriber would be able to open his NPS account online. The Prospective subscriber will require to follow the undernoted process for opening of NPS account:

• The prospective subscriber will go to eNPS platform hosted on NPS Trust website www.npstrust.org.in and enter Aadhaar and validate the same using OTP (Sent on the mobile number registered with Aadhaar).

• Then he will be required to fill up the mandatory details like choice of Pension Fund, Investment Scheme, nominations etc.

• Address and Date of Birth details will be auto-populated from details available with Aadhaar.

• He will be required to provide a mobile number and email ID (Mandatory requirement).

• He will be required to Scan and upload the signature. Subscriber may also upload a scanned photograph, in case he/she wishes to replace the photo obtained from Aadhaar, if the Aadhaar photo is blurred or hazy.

• He will be required to make online payment (Minimum amount of Rs 500/-).

• After completion of this process, the PRAN will be generated instantly.

Subscriber will be required to print the form, paste photograph, affix signature and submit the physical form to CRA within a specified period of time while continuing contributing online.

A prospective subscriber can visit NPS Trust website www.npstrust.org.in and select NPS Online menu to register and contribute to NPS.

The complete information about eNPS is available on PFRDA website www.pfrda.org.in and also on NPS Trust website www.npstrust.org.in .

Through this facility, it is expected that the subscriber will have multiple advantages like seamless onboarding experience where he need not visit a Point of Presence and can register from anywhere through an internet connection, contribution with minimum cost of transaction and reduction in errors resulting from various manual activities.

PIB

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