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NPS update: 4 new rules that subscribers, pensioners need to know

PFRDA and IRDAI has brought many changes for NPS subscribers and pensioners.

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The Pension Fund Regulatory and Development Authority (PFRDA) and the Insurance Regulatory and Development Authority of India (IRDAI) has introduced a lot of changes for the National Pension System (NPS) subscribers and pensioners. 

NPS e-nomination process flow to change from October 1 

The flow process of e-nomination has been modified recently for both government and corporate sector subscribers. As per the new rules, the nodal office will have the choice to accept or reject the e-nomination request once it is initiated. 

If the nodal office does not take any action against the request within 30 days, then the request will be accepted automatically in the Central Recordingkeeping Agencies (CRA) system. 

“The revised process flow shall also be applicable to the existing e-nomination, which are still unauthorised,” PFRDA said in a circular last month. The revised e-nomination process flow will be effective from October 1. 

No separate form to buy an annuity plan at maturity 

NPS investors will no longer be needed to submit a separate proposal form to buy annuity products at maturity. 

Previously, NPS investors were needed to submit an exit form to PFRDA and a detailed proposal form to the life insurance company for buying an annuity plan to receive a pension. Now, the exit form of NPS will be treated as the proposal form for purchasing annuities from life insurance companies. 

Digital Life certificate submission

The insurance regulator has advised insurance companies to adopt Aadhaar-based authentications for verification of life certificates such as Jeevan Praman to ease the process for pensioners. 

NPS tier-2 account holders cannot contribute through credit card

NPS tier-2 account holders are no more allowed to make contributions through credit cards from August 3. 

Note: The payment from the credit card option is still available for NPS tier-1 account holders.

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