PFRDA proposes modifications in untimely exit guidelines for Atal Pension Yojana

NEW DELHI: To enhance acceptability of Atal Pension Yojana (APY) scheme amongst casual sector employees, the Pension Fund Regulatory and Development Authority (PFRDA) has proposed modifications in untimely exit processing for the good thing about subscribers.

APY is a social safety scheme administered by PFRDA via banks and the division of publish. The scheme provides assured pension advantages to eligible residents after reaching the age of 60 years, who subscribe and contribute to the scheme.

According to a PFRDA round issued on 3 September, “The existing mode of premature withdrawal under APY is examined from time to time by PFRDA based on the inputs/suggestions received from various stakeholders and the changes are proposed with suitable technological intervention.”

The scheme will introduce immediate checking account verification within the curiosity of underlying subscribers for the orderly processing of their exit requests.

The following pointers are issued for facilitating well timed switch of withdrawal quantity within the checking account of APY subscribers and in addition as extra due diligence to guard their corpus mendacity within the Permanent Retirement Account Number (PRAN). 

There may very well be two situations on the time of exit that are defined as beneath:

A. If the SB account particulars of subscribers on the time onboarding & exit are the identical

1. APY subscriber ought to incorporate the sector indicating lively standing of financial savings financial institution (SB) account within the revised exit file format supplied by CRA which is necessary from 15 September, 2021.

2. Instant Bank Account verification by penny drop shall even be undertaken by CRA to confirm the operative standing of financial savings account as a part of enhanced due diligence.

3. The above modifications are being carried out to allow CRA system to course of the untimely withdrawal requests the place the related SB Account is operative in order to make sure receipt of APY account closure proceeds within the SB account, as per the PFRDA round.

4. If the related financial savings account is closed/dormant, the modified course of ensures preservation of subscribers’ contribution within the PRAN itself to generate optimum market-based returns.

B. If the financial savings account particulars on the time of onboarding & exit will not be the identical, totally different account numbers of the identical financial institution or the totally different financial institution

1. Subscribers are suggested thatAPY closure proceeds be credited to the identical checking account quantity and should settle for the request with a special account quantity or account of a special financial institution solely as an exception. Such requests are to be accompanied by proof of alternate account quantity acceptable to the financial institution, as per the PFRDA round.

2. Instant Bank Account verification by penny drop shall be undertaken by CRA as a part of enhanced due diligence together with identify matching between PRAN and checking account quantity.

3. Exit requests with mismatches or with unsuccessful account verification, publish penny drop is to be confirmed by respective APY subscriber for additional processing of exit requests by CRA, as per the round.

4.Subscribers are to be educated to maintain their respective checking account lively once they submit their untimely withdrawal request and the request is processed. An appropriate endeavor might be obtained from the subscriber as a part of the withdrawal request.

5. The relevant costs for immediate checking account verification can be recovered by CRA from the respective PRAN for reimbursement to service supplier. Prevailing costs for verifying checking account quantity via penny drop is Rs2.40 and tax, as per the PFRDA round.

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