The Pension Fund Regulatory and Development Authority (PFRDA) has made it mandatory for the subscribers of New Pension System (NPS) to submit applications online for settlement of withdrawal claims from April 1 next year.
According to a PFRDA directive, with effect from April 1, 2016 only such withdrawal requests raised on online platform will be accepted at CRA (Central Recordkeeping Agency) system for further processing.
“Physical withdrawal request forms received at CRA will not be accepted for further processing,” the pension fund regulator said.
PFRDA said it was committed to support the ‘Digital India’ drive and efforts were being made to make various NPS related services available on online platform.
Making withdrawal process online by which subscribers can raise withdrawal request using the web portal is one of the such initiatives, it said.
“This will make withdrawal process paperless to a great extent and seamless and exit claims of the subscribers can be settled in least possible time,” it said.
NPS has been implemented for all employees (except armed forces) joining central government on or after January 1, 2004.
NPS has been made available to every Indian citizen from May 2009 on a voluntary basis. A subscriber can exit NPS owing to superannuation, premature exit and death.