Good news for NPS holders: the NPS Withdrawal Rule has changed! revised guidelines for NPS cash withdrawals

 Good news for NPS holders: the NPS Withdrawal Rule has changed! revised guidelines for NPS cash withdrawals

Changes to the NPS Withdrawal Rule: In order for subscribers to withdraw funds under the National Pension System (NPS), "Penny drop" verification is now required. This will guarantee that shareholders' money is sent on schedule.

In order for subscribers to withdraw funds under the National Pension System (NPS), "Penny drop" verification is now required. This will guarantee that shareholders' money is sent on schedule. The Pension Fund Regulatory and Development Authority (PFRDA) provided this information.

Why does a penny drop?

In the penny drop procedure, the record keeping central agencies (CRAs) verify that the bank savings account is still open and verify that the name or "PRAN" (permanent retirement account number) on the paperwork is the same as the bank account number. These clauses will apply to all NPS, Atal Pension Yojana (APY), and NPS Lite withdrawals, as well as modifications to user bank account information. By depositing a modest sum of money into the beneficiary's bank account and matching the name based on the penny drop answer, a "test transaction" is carried out to confirm the account's legitimacy.

Penny drop confirmation is needed.

A new notice from PFRDA states that in order to complete exit/withdrawal applications, change the customer's bank account data, and match names, penny drop verification has to be successful.

November will see the campaign run.

To allow 70 lakh central government retirees to submit life certificates, the Department of Pension and retirees' Welfare will launch the national Digital Life Certificate Campaign 2.0 in November 2023. In association with 17 banks, 500 venues in 100 cities around India will host Digital Life Certificate (DLC) courses.