The Pension Fund Regulatory and Development Authority (PFRDA) on February 07, 2023, issued a circular regarding the reinvestment of Returned & Unsuccessful Transaction amount into the same PRAN and ease of reclaiming the amount by Subscriber through MWM.
It is stated that the NPS/APY Subscribers are permitted to withdraw from their Permanent Retirement Account Number (PRAN) as per the applicable guidelines and the provisions of regulations issued by PFRDA.
The following have been stated:
• The amount is withdrawn but unclaimed - There are instances wherein the corpus of Subscribers, could not be credited to their Savings Bank (SB) Account because of incorrect bank account details.
• Reclaim the Amount - The Subscribers can reclaim the amount as per the format attached (Annexure) that can be submitted to the nodal officers, Points of Presence (POP), APY Service Providers, CRAs, and NPS Trust (NPST) as the case may be.
• My Withdrawal Module (MWM) - PFRDA through its Central Record Keeping Agencies (CRAs) is in the process of building a Subscribers' digital interface '' MY WITHDRAWAL MODULE (MWM)’’ to ease the process of reclaiming such amount, which shall have the following enablement:
o Provision to submit the beneficiary bank account details and verify the same through penny drop for name matching between PRAN and Bank Acct
o Provision to upload the proof of Bank Acct
o The option to choose ASP for reissue of Annuity as per the choice of Subscriber.
• Ensure correctness of Bank Acct number - The stakeholders need to ensure while processing the withdrawal request of the associated Subscribers that the Bank acct/IFSC code is correct to ensure timely payment of corpus.
• Reinvestment in PRAN - Post building the MWM, the amount which lies beyond one month without transferring to the beneficiary’s Bank Acct shall be reinvested in the same PRAN as per the choice of investment/PF prevailed at the time of exit, to benefit the Subscribers with ‘market-linked returns’.
The CRAs can build the MWM for the benefit of Subscribers and popularize the facility to ease the process of reclaiming the amount.
[Circular No. PFRDA/2023/07/SUP-TB/01]
