The Pension Fund Regulatory and Development Authority (PFRDA) has launched a facility that will help reduce the cost of opening National Pension System (NPS) accounts for subscribers. PFRDA has introduced an additional option for subscribers to receive e-PRAN along with the welcome kit online. By opting to receive Permanent Retirement Account Number (PRAN) via email, subscribers can save between Rs 22 and Rs 35.
According to a PFRDA press release issued on June 30, 2020, “In order to give them a choice to optimize the cost i.e. the account opening charges payable to Central Record keeping Agencies (CRAs), it has now been decided that a subscriber may , either opt for physical PRAN card or e-PRAN (PRAN received through e-mail) along with the option to receive welcome kit as well, either physically or through email.”
The PRAN is an unique 12-digit numerical code allotted to an NPS subscriber upon joining the scheme. Currently, under NPS, subscribers are given a physical PRAN card along with the welcome kit.
Charges for receiving physical PRAN card vs PRAN card via email
|Intermediary||CRA charges for account opening if the subscriber opts for physical PRAN card (in Rs)||CRA charges for account opening if the subscriber opts for ePRAN card (in Rs). Welcome kit sent in physical||CRA charges for account opening if the subscriber opts for ePRAN card (in Rs). Welcome kit sent via email only|
Source: npstrustorq.in website
Note: The reduction in charges will be on the current charge structure and excludes applicable taxes.
Charges will be applicable post release of the functionalities by CRAs to capture the choice of NPS subscribers to have physical or ePRAN card.
Accordingly, both the physical PRAN card as well as e-PRAN will be considered at par whenever presented for identification, servicing, exit or any other NPS related processing, PFRDA stated.
Further, if a subscriber chooses e-PRAN while on-boarding, but want to get a physical PRAN card at a later stage, he/she can request for the same at applicable charges, as per the release.
CRAs are being advised to develop system level functionality to capture various choices of subscribers with reference to PRAN card.