PFRDA, the pension fund regulator, has added Aadhaar eKYC as an extra option for adding clients to its flagship pension scheme Atal Pension Yojana, in order to grow its subscriber base and streamline the onboarding process.
Currently, the Pension Fund Regulatory and Development Authority (PFRDA) allows subscribers to enroll by physical, net banking, and other digital forms.
“CRA (Central Recordkeeping Agency) will now offer digital on-boarding based on Aadhaar eKYC as an extra option in order to expand the reach and simplify the subscription process. These procedures do not require the use of paper “In a notification, the PFRDA stated.
Following the opening of an APY account, the appropriate APY-SP will provide further service to the subscribers (Atal Pension Yojana-Service Provider).
Furthermore, the PFRDA stated that all APY accounts will be seeded with Aadhaar. For this, the CRA will provide a facility that will allow existing APY subscribers to have their Aadhaar seeded through the necessary permission method.
APY-SPs, on the other hand, can acquire Aadhaar details from subscribers after obtaining their agreement, which will be shared with the CRA for seeding.
“All APY-SP banks are urged to include an e-APY link on their corporate website for the benefit of their customers and to make onboarding easier for them.”
“CRA is urged to engage with all APY-SPs for system level integration so that e-KYC based APY on-boarding and consent framework for Aadhaar seeding may be provided as soon as possible,” the PFRDA added.
On June 1, 2015, the government launched the Atal Pension Yojana (APY) to provide social security to workers in the unorganised sector. Its goal is to establish a universal social security system for all Indians, particularly the poor and low-wage workers.
Under the NPS’s administrative and institutional architecture, the PFRDA administers APY (National Pension System). The use of Aadhaar as an identifying document for the delivery of services or benefits under the APY streamlines and streamlines government delivery operations.
According to PFRDA data, the number of APY subscribers was 304.51 lakh as of August 31, 2021.