The Pension Fund Regulatory and Development Authority (PFRDA) on Monday allowed users to open National Pension System (NPS) accounts using one-time password (OTP) based authentication.
The Pension Fund Regulatory and Development Authority (PFRDA) on Monday allowed users to open National Pension System (NPS) accounts using one-time password (OTP) based authentication. NPS is a government-run investment scheme that gives the subscriber the option to set the preferred allocation to different asset classes.
"In this process, the customers of banks (registered as Points of Presence (POPs)) can open NPS accounts using OTP received on their registered mobile number,” PFRDA said in a statement.
"For opening NPS accounts through non internet banking digital mode, through POPs (banks as well as non-bank POPs), OTP received on the registered mobile number and email can be used for paperless NPS account opening," it added.
Post completion of KYC, POPs have to submit the NPS subscriber's data/information to Central Record Keeping Agencies (CRAs) along with his photo and image of signature with an undertaking that the KYC/AML guidelines/rules have been duly complied with.
POPs and CRAs have been advised by PFRDA to provide the required functionality of OTP based authentication.
"This process would ensure seamless account opening, end to end digitization and optimizing of investment returns by deposit of contributions in a faster way," PFRDA said.