Good news for NPS and Atal Pension Yojana investors, e-KYC gets approval for the scheme
NPS and Atal Pension Yojana investors, e-KYC
NPS eKYC: Now you will be able to get e-KYC for National Pension System (NPS) and Atal Pension Yojana (APY). That means now you have got relief from the paper mess for investing in these schemes. Account will be opened digitally.
New Delhi: e-KYC for National Pension System (NPS) and Atal Pension Yojana (APY) gives relief from the paper mess for investing in these schemes.Digital way of opening of accounts has been introduced.
The Pension Fund Regulatory and Development Authority (PFRDA) has stated that it has received approval from the Revenue Department to start e-KYC services for NPS and APY.
e-KYC in NPS, APY:
PFRDA said that online e-KYC (Know Your Customer) will make it easier for NPS subscribers to open accounts. NPS and Atal Pension Yojna are two flagship schemes of PFRDA.
The NPS is for the organized sector, while the Atal Pension Yojana benefits the unorganized sector.
Many services will go paperless in NPS, APY
The PFRDA states that the 'Entry to Exit' (E2E) kit is offered to subscribers, PFRDA has completely transformed the journey of NPS subscribers till the scheme comes in and goes out. Many services including annuity have become absolutely easy and paperless.
PFRDA stated that it has digitized many services, such as OTP based authentication, paperless on boarding, e-sign based authentication and video customer identification which allows people far away to join the scheme.
What is Atal Pension Yojana -
Atal Pension Yojana is meant specially for the unorganized sector workers. This plan is getting very good response. During the current financial year, more than 40 lakh people have registered for it so far.
According to the data of Pension Fund Regulatory and Development Authority (PFRDA), the total number of shareholders in the Atal Pension Yojana has crossed 2.63 crore. Under this pension scheme included people of the age group from 18-40 years.
In this scheme, the contributors get the guaranteed pension amount after the age of 60 years or the same guaranteed pension to their spouse after the death of the shareholder.
Apart from this, there is also an arrangement to return the total accumulated pension fund to the nominee till the shareholder is 60 years old.
APY has two benefits -
2. Income tax exemption.
This scheme gives a minimum guaranteed monthly pension ranging from 1000 to 5000 Rs to people from the age of 60 years.
What is NPS and its benefits -
National Pension System is a widely accepted option in the country for retirement funds. People between 18 and 60 years of age can invest in the National Pension System.
Accounts can be opened under this scheme by going to all government and private banks in the country.
The National Pension System is managed just like a mutual fund. It invests in three ways - equity, corporate bonds and government securities.
The NPS scheme is applicable to both government and private sector employees. In this scheme the investor has to deposit some amount every month during his/her job. Investors can withdraw a part from the fund prepared after retirement and an annuity has to be taken for regular income from the remaining amount. Income tax benefit is also provided by investing in Tier 1 account of NPS.