PFRDA launches facility for on-line opening of APY subscription

The Pension Fund Regulatory and Development Authority of India (PFRDA) has introduced the launch of Aadhaar-based e-KYC (know-your-customer) facility. If an individual desires to open Atal Pension Yojana (APY) account, he/she will accomplish that by verifying particulars with Aadhaar based mostly e-KYC course of on-line.

Currently, one can open APY account by visiting financial institution department. One also can subscribe to APY by means of internet banking or digital modes supplied by APY service suppliers.

The PFRDA issued a round dated October 27, that stated, “Now with the intention to additional improve the outreach and simplify the method of subscription, CRA (Central Recordkeeping company) could be offering digital on boarding based mostly by means of Aadhaar eKYC as an extra choice.” Aadhaar XML based mostly on boarding has already been made out there for the good thing about Subscribers. These processes are paperless.

How it really works

The PFRDA round stated that the data fetched from the potential subscribers by means of e KYC expertise framework viz Aadhaar particulars, demographic data, pension quantity, mode of cost and so on. shall be shared with the respective banks the place the subscribers’ financial savings checking account is maintained by means of on-line data trade for establishing of auto debit for the desired quantity/mode. Post opening of APY account, the following servicing of subscribers could be supplied by the respective APY-SP.

Further, all of the APY accounts are to be seeded with Aadhaar quantity for which the CRA will likely be offering a performance for facilitating the Aadhaar seeding of the present APY subscribers by means of the right consent mechanism. Additionally, APY-SPs also can accumulate the Aadhaar particulars from their related subscribers with due consent which might then be shared with CRA for seeding.

CRA is suggested to interact with all APY-SPs for system degree integration in order to offer the performance viz e KYC based mostly APY on-boarding and consent framework for Aadhaar seeding on the earliest, stated PFRDA round.

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