Aadhaar-based paperless KYC process allowed for opening NPS account

New Delhi: Pension fund regulator PFRDA on Wednesday said it has allowed Aadhaar-based paperless KYC process for onboarding of new subscribers under the National Pension System (NPS).

The Pension Fund Regulatory and Development Authority of India (PFRDA) said it has permitted e- NPS/Points of Presence facilities to use offline Aadhaar of prospective subscribers with their consent for opening NPS accounts.

The Aadhaar-based offline paperless KYC verification "eliminates the need" to provide a physical copy of the 12-digit identifier.

Under the new process, an applicant can download the password-protected Aadhaar XML file by accessing the UIDAI portal through eNPS?and share the same?for his KYC.

The facility can also be availed for opening NPS accounts through Points of Presence (POP), which are offering this facility, it added.

In this process, the KYC details are "in machine-readable XML format, which is digitally signed by UIDAI allowing eNPS/ POPs to verify the demographic contents of the file and certify the same to be authentic.

The identity and address of the applicant can be verified in the process.

"The process enables immediate activation of NPS account due to instant KYC verification and also facilitates the immediate deposit of NPS contribution by the subscriber," PFRDA said.