PFRDA launches an online opening facility for the APY subscription
The Indian Pension Fund Development and Regulation Authority (PFRDA) has announced the launch of an e-KYC (Know Your Customer) facility based in Aadhaar. If a person wants to open an Atal Pension Yojana (APY) account, they can do so by checking the details with the Aadhaar based e-KYC process online.
Currently, you can open an APY account by going to a bank branch. One can also subscribe to APY via net banking or digital modes provided by APY service providers.
The PFRDA issued a circular dated October 27, which read: “Now, in order to further increase the reach and simplify the subscription process, the ARC (Central Record Keeping Agency) would provide digital integration based on Aadhaar eKYC as an additional option. âAadhaar XML based onboarding has already been made available for the benefit of Subscribers. These processes are paperless.
How it works
The PFRDA circular stated that the information extracted from potential subscribers through the e KYC technology framework, namely Aadhaar details, demographic information, pension amount, payment method, etc. exchange of information for setting up automatic debit for the specified amount / method. After opening the APY account, the further subscriber service would be offered by the respective APY-SP.
Additionally, all APY accounts must be seeded with an Aadhaar number for which the CRA will provide functionality to facilitate Aadhaar seeding of existing APY subscribers through the appropriate consent mechanism. Additionally, APY-SPs may also collect Aadhaar details from their associated subscribers with proper consent, which would then be shared with the CRA for seed.
ARC is advised to engage with all APY-SPs for system level integration to provide the KYC based APY integration and consent functionality as early as possible for bootstrapping. Aadhaar, the PFRDA circular said.
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