PFRDA Now Allows Paperless Onboarding With CYKCR to Open NPS Account
Pension Fund Regulator and Development Authority (PFRDA) has made the onboarding process easier for NPS account holders. The decision to ease the process and allow a paperless onboarding system through CYKC has been taken into consideration under the national pension system.
The National Pension System refers to a defined contribution retirement savings scheme that enables the subscribers to decide about their future investments through systematic savings during their working life.
CKYC facility has been initiated by the central government to provide relaxation to the NPS subscribers who are using Aadhar-based offline paperless KYC. PFRDA has facilitated the procedure to save customers from the hassle of getting KYC done repeatedly for availing financial services falling under various regulators.
“The objective of CKYCR is to ease the process of opening accounts with financial service providers and unburden the investors from producing KYC documents and getting those verified every time,” PFRDA said in a release.
The pension fund regulator PFRDA on Monday announced its new decision to allow users to get benefits and avail of financial services through the government’s central KYC. PFRDA has already started digital onboarding under the national pension system through documents issued through DigiLocker, Aadhaar eKYC, PAN or bank account information, etc.
Taking into account the 75 years of Independence, the government introduced Azadi Ka Amrit Mahotsav (AKAM) to emphasise the importance of the digital boom. Taking this into consideration, PFRDA announced that the prospective subscribers will be provided with another option to open an NPS Account through CKYC which is online and paperless.
The process will be simple, easy, and secure and will attract tech-savvy millennials. Earlier, NPS account holders have to get KYC done before availing any financial service. But now, they don’t have to follow the same procedure as CKYC has to be done only once.
Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI) is in charge of managing CKYC. PFRDA says that the objective of CKYCR is to ease the process of opening accounts across financial services. According to PFRDA, this effort by the central government will save the hassle of preparing KYC documents and verifying them every time.
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