VCIP for the purpose of On-boarding, Exit or any other services related to NPS
The Pension Fund Regulatory and Development Authority (PFRDA) has allowed intermediaries to utilize Video Based Customer Identification Process (VCIP) for onboarding, exiting, and other services related to the National Pension System (NPS) through circular number PFRDA/2020/46/SUP-CRA/18 dated October 6, 2020
पेंशन निधि विनियामक एवं विकास प्राधिकरण
PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY
Circular No: PFRDA/2023/01/Sup-CRA/01
4th Jan 2023
CIRCULAR
To
All NPS Stakeholders
Subject: Online Claim Processing by Intermediaries using Technology – Aadhaar & VCIP – reg.
PFRDA vide circular no PFRDA/2020/46/SUP-CRA/18 dated 6th Oct 2020, permitted intermediaries to use Video Based Customer Identification Process (VCIP) for the purpose of On-boarding, Exit or any other services related to NPS.
2. PFRDA has been receiving representations from the intermediaries to allow the usage of VCIP for faster processing of withdrawal claims favoring the nominees/claimants/legal heirs due to the unfortunate death of NPS subscribers.
3. In line with the technological advancements and for ensuring seamless exit claim processing, it has been decided to allow the intermediaries to use technological intervention by using VCIP as an added due diligence mechanism for verification of the nominee/ claimant /legal heir while processing the withdrawal claims in case of death of NPS subscribers.
4. VCIP augments the existing due diligence efforts undertaken by the intermediaries by making the process more secure with respect to the verification of the nominee/claimant/legal heir, being the same person as the one submitting the documents for processing the claim and maintaining a video record of the same. The credentials of the nominee can be established using Aadhaar e-KYC or Digi Locker.
5. All the intermediaries are hereby informed to use Instant Bank Account Verification through penny drop for the purpose of verifying claimants’ bank account information as part of claim processing which allows independent verification of Bank Account and name matching.
6. The process is optional for use by the intermediaries. However, PFRDA advises PoPs, especially Online PoPs to use the emerging technology for enhanced due diligence and error free/ timely processing of claims. NPS Trust may also use the above process while processing e-NPS death claims.
Digitally signed by K MOHAN
GANDHI
Chief General Manager