The Pension Fund Regulatory and Development Authority (PFRDA) has announced that the e-Nomination facility for the National Pension Scheme (NPS) subscribers has undergone certain transformations. The e-nomination process, which was announced by the regulatory authority in September 2020, allowed government and corporate sector subscribers to utilise the facility using their login credentials to update their nomination in their Permanent Retirement Account Number (PRAN). The request had to be authorised by the relevant nodal officers. This led to a large amount of pendency of e-nomination requests.
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Now, as per the notification released by the PFRDA on 25 August, if the nodal officer did not act on a nomination request within 30 days, the request will automatically get approved in the CRA (Central Recordkeeping Agency) system. The revised e-nomination process flow for government and corporate sector subscribers will go into effect from 1 October, 2022.
“Once the subscriber initiates the nomination request, the nodal officer would be given an option of either to accept or reject it. In case, the he or she does not initiate any action against the request within the 30-day period, the request would get accepted in the CRA system. The revised flow shall also be applicable to the existing e-nomination, which are still unauthorised,” the PFRDA mentioned in the notification.
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An NPS subscriber is required to make a nomination, of one or more persons with right to receive the amount that is due credit in the event of their demise, at the time of joining the scheme. As per the regulations charted out by the PFRDA, a subscriber’s family members shall be favoured in the nomination process.
In case the subscriber has no family at the time of joining, the nomination will be favoured to any person mentioned. In case a nominee predeceases the subscriber, the nomination becomes void. In such a case, a fresh nomination is required to be made by the subscriber.
