Ease of NPS account opening: PFRDA allows digital onboarding through Central KYC

The Pension Fund Regulatory and Development Authority (PFRDA) has now introduced a digital retirement system for the National Pension System (NPS) through Central KYC System (CKYC).

CKYC is a government initiative that enables NPS subscribers/financial investors to complete KYC only once to interact with multiple service providers across the financial sector under the scope of various regulators.

CKYC is administered by CERSAI, which is the government entity authorized to act as a central KYC registry (CKYCR).

“In a series of various digital initiatives as part of Azadi Ka Amrit Mahotsav (AKAM) to celebrate the 75th anniversary of India’s Independence, PFRDA is pleased to learn that prospective subscribers are being provided with another option to open an NPS account through CKYC and the process is online and paperless,” it reads. in a publication of the Authority.

The goal of CKYCR

The goal of CKYCR is to make it easy to open an account with financial service providers and relieve investors from the burden of producing KYC documents and getting verified ones every time. CKYCR acts as a central repository of KYC records for financial sector investors and facilitates interoperability of KYC records across the sector with their due approval.

A CKYC identification number is a 14-digit number that CERSAI assigns to an investor after completing a CKYC procedure. Prospective subscribers can also check their CKYC number/status online by visiting the online portal of financial institutions that provide CKYC verification facility. In addition, they can contact the financial institutions where they have submitted their CKYC documents to obtain the number.

He might recall that PFRDA has already enabled multiple modes of digital entry into NPS with Documents issued from Digital Locker, Aadhaar eKYC/XML Account and PAN/Bank.