Guidelines for Operational Activities - to be followed by Point of Presence (PoPs-NPS-Lite)

[Image omitted. See the official document.]

पेंशन निधि विनियामक एवं विकास प्राधिकरण

PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY

CIRCULAR

CIR No.: PFRDA/2022/06/SUP-POP/01
Date: 16 March 2022

To,
All Points of Presence (PoPs-NPS-Lite)

Dear Sir / Madam,

Subject: Guidelines for Operational Activities - to be followed by Point of Presence (PoPs-NPS-Lite)

In exercise of the powers conferred under Section 52 of Pension Fund Regulatory and Development Authority Act, 2013 read with Chapter VII of Pension Fund Regulatory and Development Authority (Points of Presence) Regulations, 2018, and amendments thereof, the following guidelines are being issued. These guidelines shall supersede the earlier guidelines dated 1^st January 2016 issued for compliance by all Points of Presence registered under Regulation 3(1)(iv) - NPS-Lite-Swavalamban scheme (hereinafter referred to as 'PoP-NPS-Lite'). The guidelines may be modified by Pension Fund Regulatory and Development Authority (PFRDA) from time to time depending upon the service requirements. These guidelines shall be effective from 1^st April 2022.

The detailed guidelines covering following points are enclosed along with this circular.

• A. Service Standards
• B. Standard Operating Procedures
• C. Contribution Management Procedure
• D. Reports and Disclosures
• E. Redressal of grievances
• F. Other Functions

All entities are advised to update their system and streamline the processes to follow the operational guidelines issued by the Authority.

Yours faithfully,

-sd-
(Sumeet Kaur Kapoor)
Chief General Manager
sumeet.kapoor@pfrda.org.in

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GUIDELINES FOR THE POINTS OF PRESENCE REGISTERED UNDER REGULATION 3(1)(iv) - NPS-LITE-SWAVALAMBAN SCHEME OF PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY (POINT OF PRESENCE) REGULATIONS, 2018, AND AMENDMENTS THEREOF.

In exercise of the powers conferred under Section 52 of Pension Fund Regulatory and Development Authority Act, 2013 read with Chapter VII of Pension Fund Regulatory and Development Authority (Points of Presence) Regulations, 2018, and amendments thereof, the following guidelines are being issued. These guidelines shall supersede the earlier guidelines dated 1^st January 2016 issued for compliance by all Points of Presence registered under Regulation 3(1)(iv) - NPS-Lite-Swavalamban scheme (hereinafter referred to as 'PoP-NPS-Lite'). The guidelines may be modified by Pension Fund Regulatory and Development Authority (PFRDA) from time to time depending upon the service requirements. These guidelines shall be effective from 1^st April 2022.

A. Service Standards

[1] PoP-NPS-Lite shall duly follow the 'Service Standards' as prescribed under Schedule I of these guidelines for providing the services under NPS-Lite-Swavalamban scheme.

[2] PoP-NPS-Lite shall collect the contributions from the NPS-Lite-Swavalamban scheme subscribers on regular basis and aggregate the contribution information and the relevant funds at the level of the nodal office.

[3] PoP-NPS-Lite shall provide services, such as carrying out subsequent transactions for the subscribers and other services like shifting of PoP-NPS-Lite, change in personal details of the subscriber, processing of exit/withdrawal request, follow up on initiation of exit request under NPS-Lite by the subscriber etc., in accordance with Schedule I of guidelines.

[4] PoP-NPS-Lite shall make good the loss to the subscriber in the event of any delay or violation for the activities prescribed under Schedule 1 as under:

• (i) Financial transactions –
  PoP-NPS-Lite shall pay @ bank rate + 2% p.a. of the transaction amount, which will be contribution amount (in case of deposit) or exit proceeds (in case of exit/ withdrawal claim), rounded off to next integer value, or as per rate determined by the employer/ aggregator for their employees/ associates, whichever is higher, for the period of delay. The bank rate shall be as applicable as prevalent on date of receipt of contribution.

• (ii) Non-financial Transactions –
  PoP-NPS-Lite shall pay @Rs 5 per day, subject to a maximum of Rs 100, or as per the rate determined by the employer /aggregator for their employees/ associates, whichever is higher, for the period of delay.

[5] PoP-NPS-Lite shall always encourage subscribers to do cashless transactions.

[6] PoP-NPS-Lite shall facilitate their underlying eligible subscribers for migration to Atal Pension Yojana (APY) scheme or National Pension System (NPS), if the subscriber so desires.

[7] PoP-NPS-Lite shall resolve the grievances of the subscribers in accordance with Pension Fund Regulatory and Development Authority (Redressal of Subscriber Grievance) Regulations, 2015 and amendments thereof.

[8] In accordance with Pension Fund Regulatory and Development Authority (Points of Presence) Regulations, 2018, and amendments thereof, PoP-NPS-Lite may engage the services of other service providers or banking correspondents, for facilitating distribution of pension schemes, as facilitators and shall ensure the following while associating with any facilitator:

• (i). The terms and conditions of operations between PoP-NPS-Lite and the facilitator/s shall be mutually agreed upon and shall be in accordance with the Pension Fund Regulatory and Development Authority (Points of Presence) Regulations, 2018, and subsequent amendments thereof, as well as the present guidelines.
• (ii). PoP-NPS-Lite shall ensure flow of information from facilitators to PoP-NPS-Lite in such a way that all Turn Around Times (TATs) as prescribed under service level standards in Schedule I, or approved by PFRDA under File and Approve mechanism, are strictly adhered to.
• (iii). PoP-NPS-Lite shall ensure that the facilitators contact or communicate only with it on all matters, and any direct communication with PFRDA shall not be entertained in any event whatsoever.
• (iv). PoP-NPS-Lite shall compile and ensure submission of the prescribed MIS reports on behalf of its associated facilitators, to PFRDA. Facilitators shall not directly submit any MIS report / information to PFRDA, which in event thereof, shall not be accepted as submission.

[9] PoP-NPS-Lite shall make available all NPS-Lite-Swavalamban scheme related forms, as prescribed by PFRDA from time to time, on its website and/ or at branches.

[10] PoP-NPS-Lite shall adhere to the PFRDA Act 2013 and all regulations made thereto, and circulars, guidelines, directions, advisories etc. issued by PFRDA from time to time.

B. Standard Operating Procedures

PoP-NPS-Lite shall adhere to the Standard Operating Procedures (SOPs) prescribed by the Central Recordkeeping Agency (‘CRA’) and / or PFRDA for the operational activities with respect to NPS-Lite-Swavalamban scheme.

C. Contribution Management Procedure

PoP-NPS-Lite shall comply with the following procedures and parameters to ensure transparency, uniformity and risk minimization.

[1] NPS-Lite-Swavalamban scheme contribution collection process

• (i). PoP-NPS-Lite shall ensure that credible collection infrastructure is available to its underlying subscribers.
• (ii). PoP-NPS-Lite shall open or maintain a collection account in the name of “Name of the PoP or its abbreviation –Collection Account – Name of pension scheme or its abbreviation – National Pension System Trust or its abbreviation” and such account shall be a non-withdrawable account with an option to transfer the funds to the NPS Trust account. In exceptional cases such as wrong entries, unidentified entries or amount not pertaining to subscriber contribution, it may be credited to any other account as may be specified by PFRDA through guidelines/circulars. PoP-NPS-Lite shall be required to record the reasons for such transfers in writing. The authority to transfer the amount from collection account will reside with the Point of Presence, which shall be subject to audit by PFRDA or its authorized representative, and the decision of the PFRDA on the same shall be final and binding.
  As illustration, if the Point of Presence performing activities of NPS-Lite-Swavalamban Scheme is State Bank of India, then nomenclature of the collection account will be “SBI - Collection Account – NPS-Lite -NPS Trust”.
• (iii). PoP-NPS-Lite can have a collection account with itself if it is a banking entity or with any scheduled commercial bank if it is a non-banking entity.
• (iv). PoP-NPS-Lite shall collect the subscriber’s contribution only from the designated/ registered branches or facilitator.
• (v). PoP-NPS-Lite shall ensure that the list of designated/registered branches including that of the facilitators, which are authorized to collect contribution from subscribers, must be made publicly available.
• (vi). PoP-NPS-Lite shall ensure that the acknowledgement slip / receipt with unique number (preferably digital receipt) is being issued to the subscribers.
• (vii). PoP-NPS-Lite shall ensure to collect the Permanent Account Number (PAN) of the subscribers for all cash transactions exceeding Rs.50,000/-(Rupees Fifty Thousand) or as prescribed under Rule 114B of the Income-tax Rules, 1962.