NPS eNomination: Changes in process flow of e-nomination for NPS subscribers with effect from October 1
According to a circular issued on August 25, 2022, PFRDA stated that the nomination request would be accepted in the CRA system if the Nodal Office did not take any action against it within the allotted 30 days. The revision in the e Nomination process flow shall be effective from 1st Oct 2022.
Pension Fund Regulatory and Development Authority announced the availability of the e-Nomination service for NPS subscribers in a communication dated September 3, 2020. It has now been decided that the nomination request would be given to the Nodal Office with the option to accept or reject it. The request would be accepted in the CRA system if the Nodal Office did not take any action against it within the allotted 30 days.
A NPS subscriber must make a nomination in the prescribed form when they sign up for the National Pension System.
At present, The existing Subscribers of NPS who wish to change their nomination in their PRAN can use ‘e Nomination’ through their login credentials. The Subscribers can also opt to submit the application for changes in the Nomination, physically to the associated Nodal Officers, Corporate or Points of Presence (POPs) as applicable. In case of e Nomination of the Subscribers associated with the Government/Identified Corporate, the e nomination requests need to be authorized by the associated Nodal Office/Identified Corporate for changing the nomination in the PRAN of Subscribers as maintained by the respective CRA.
“There are a large number of pendency of e Nomination requests of Subscribers, which are attributed to the non-authorization by the associated Nodal Office/Corporate,” stated PFRDA in its latest circular.
“In the interest of Subscribers, it has been decided that once the subscriber initiates the nomination request, the Nodal Office would be given an option of either Accept or Reject the nomination request. In case, the Nodal Office has not initiated any action against the request within the 30 days period, the request would get accepted in CRA system. The revised process flow shall also be applicable to the existing e nomination, which are still unauthorized,” stated the PFRDA.
In the e-Nomination, the Subscribers will also need to submit an online declaration stating that “I understand and consent to that nomination being made by me now shall be invalid ab initio if it is not consistent with Regulation 32 of the PFRDA (Exits and Withdrawals) Regulations, 2015 and amendments”, PFRDA stated.
According to Regulation 32. Nomination. – “Notwithstanding anything contained in these regulations or in any other law for the time being in force, a subscriber, at the time of joining the National Pension System is required to make a nomination, in the specified form, conferring on one or more persons the right to receive the amount that may stand to his or her credit in the accumulated wealth or fund in the event of his or her death, before that amount becomes payable or having become payable has not been paid.”
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