Video-Based Customer KYC Allowed For NPS Opening, Exit, Withdrawal

On Wednesday, the PFRDA, the body managing the NPS scheme said that it has allowed video-based customer KYC for onboarding, withdrawal as well as exiting the scheme. In the past, the regulator has been introducing new subscriber verification methods such as OTP/e-Sign based onboarding, offline Aadhaar based authentication method as well as third party reliance in respect of KYC, e-nomination and e-exit such that NPS related services can be offered in a seamless manner.

Now even as majority of NPS services are rendered online, few require physical presence of subscribers at PoP terminals for in person verification such as that for exit and some other allied services. And this compulsion is drawing investors' grievance and also leading to a delay in service processing.

"To overcome the above challenges and in the interest of NPS subscribers, PFRDA has now permitted its in intermediaries to use of Video-based Customer Identification Process , in addition to the existing options, in order to further facilitate on-boarding, withdrawals, exit and for processing of other related service requests of NPS subscribers," the release said.

Also, the CRKA and PoPs need to build the platform for the same at the earliest possible.

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