Mandatory Processing of Online Withdrawal Request

Page 1 of 17 Annexure I EXIT PROCESS TO BE FOLLOWED IN CASE OF GOVERNMENT SUBSCRIBERS A. Preface: A subscriber can exit the National Pension System (NPS) due to Superannuation, Pre- mature Exit and death. This document describes the Withdrawal procedure to be followed by the subscribers and Nodal Offices for processing the Withdrawal request in the CRA system. With a view to simplify and streamline the processing of exit and withdrawal claims, CRA has developed a ‘Online Withdrawal’ module to process ‘Withdrawal Request’ for subscribers exiting NPS on the online platform made available by CRA. In order to facilitate and expedite the process for settlement of the withdrawal claims of the subscribers of National Pension System (NPS), PFRDA has made it mandatory for all the nodal offices (PAO’s/DDO etc) to process the withdrawal claims of their underlying subscribers on the online platform being made available on the CRA system from 01st April, 2015. This functionality has been made available through the website of CRA (www.cra-nsdl.com) and can be initiated at any of the two levels as mentioned below: • At Nodal Offices (PAO/DDO) – When the applicant herself/himself does not files an online Withdrawal/exit application but submits the physical application, Nodal Offices will key in the particulars and initiate (capture, verify and submit) the Withdrawal requests in CRA system under all the three categories (Exit due to Superannuation/attainment of 60 years, exit before the age of Superannuation/attainment of 60 years and exit due to Death) Page 2 of 17 • At Subscribers – In case of Superannuation/attainment of 60 years, exit before the age of Superannuation/attainment of 60 years, the subscribers can also initiate Withdrawal requests in the CRA system which shall subsequently have to be verified by the Nodal Office (PAO/DDO) in CRA system. B. Important features of the ‘Online’ Claims Processing: • If subscriber wishes to raise the Withdrawal request in Online module (in case of Superannuation/Pre-mature exit), Claim ID is mandatory. • In case of superannuating subscribers, Claim IDs will be generated six months prior to the date of superannuation/attaining the age of 60 years of age. Nodal Offices will be able to initiate the Withdrawal request in the CRA system for all such cases where Claim ID has been generated. • If request is initiated by the subscriber, the Nodal Office has to authorize the same in CRA system. • In case of exit due to Pre-mature exit, Nodal Office has to generate the Claim ID for a subscriber to enable them to submit the online request. The process of Generation/Cancellation of Claim ID by the Nodal Office is attached as Annexure III. • If Nodal Office initiates the Withdrawal request on behalf of subscriber, Claim ID is not mandatory. • The purchase of annuity shall take place on manual basis as per existing guidelines till the online annuity purchase system is in place. C. Processing of Withdrawal request in CRA system This document describes the steps to be followed by Nodal Offices for initiating Withdrawal request in CRA system for subscribers who are exiting NPS. The document has been divided in two chapters: Page 3 of 17 Withdrawal Request raised by a Nodal Office in CRA system o Capturing of Withdrawal request by Nodal Office o Authorization of Withdrawal request by Nodal Office Subscribers raising Withdrawal Request in CRA system o Capturing of Withdrawal request by subscriber o Verification and Authorization of Withdrawal request by Nodal Office The PAO and the DTAs (hereafter referred as Nodal Offices) can capture Withdrawal request for superannuation, premature exit or death cases. The following activity flow provides the steps the Nodal Office has to follow while initiating a Withdrawal request: D. Withdrawal Request raised by a Nodal Office in CRA system • Submission of physical form by Subscriber/Claimant: Subscriber/Claimant will fill the Withdrawal Form and submit the Withdrawal request along with required documents (please refer Annexure IV) and annuity purchase form (if applicable) informing his/her choice of ASP to his/her mapped Nodal Office. • Verification of Withdrawal request: The Nodal Office will verify whether the Withdrawal Request Form has been properly filled and check whether all KYC documents have been submitted by the subscriber/claimant. The Nodal Office will initiate the request only after such verification is carried out. E. Online Capturing of Withdrawal request by Nodal Office E.1. Upon Normal Superannuation / upon reaching the age of 60 years: Nodal Office will login into the CRA system (www.cra-nsdl.com) using the one of the User ID and I-Pin. Page 4 of 17 a. After logging in the CRA site, the User will click on the menu ‘Exit Withdrawal request’ and then on the sub-menu ‘Initiate Withdrawal Request’. b. The User will enter PRAN in the designated field and submit the request. c. Category of Withdrawal request: The user will select Category of Withdrawal request as Superannuation from the drop down menu. d. Withdrawal % Allocation: The User will select the Withdrawal type and percentage of Withdrawal and submit the request. Subscriber can select maximum 60% as lump-sum Withdrawal. However, if NPS subscriber corpus is less than Rs. 2,00,000, he/she can opt for 100% as lump-sum Withdrawal. If NPS Lite subscriber corpus is less than Rs. 1,00,000, he/she can opt for 100% as lump-sum Withdrawal. e. Subscriber’s correspondence address will be displayed. The user will click on proceed. f. Bank Details: User will mandatorily provide the bank details where subscriber last salary was credited as per employment records to which funds will be transferred after redemption of units. If subscriber’s bank details are present in the CRA system, it will be displayed to the user. User will click on confirm and proceed if bank details available in CRA records are same as mentioned in Withdrawal Form, else user will click on ‘Edit’ button and will update bank details of the subscriber. The user will then confirm the details. The details should be as per the salary records maintained by the nodal office. g. Nomination Details: If Nomination details of the subscriber are available in CRA system, it will be displayed to the user. The user will click on the Page 5 of 17 Edit Button and will update Nomination details of the subscriber if the same are not matching with the details mentioned on Withdrawal Form. Else, user will update the address details of the Nominee(s). h. Annuity Service Provider (ASP) Selection: User will select an ASP and ASP scheme for the ASPs empanelled by PFRDA under NPS. i. The user will then be navigated to ‘Checklist’ page where the User will select the documents submitted by subscriber. The User will then submit the request. j. The User will then be navigated to confirmation screen where the User will have to confirm the details captured. On confirmation, the request will be captured in the CRA system and an Acknowledgement Number will be generated. User should note down the Acknowledgement Number generated. E.2. On Exit from NPS before the age of Normal superannuation / age of 60 Years (irrespective of cause) Nodal Office will login into the CRA system (www.cra-nsdl.com) using the one of the User ID and I-Pin. a. After logging in the CRA site, the User will click on the menu ‘Exit Withdrawal request’ and then on the sub-menu ‘Initiate Withdrawal Request’. b. The User will enter PRAN in the designated field and submit the request. c. Category of Withdrawal request: The user will select Category of Withdrawal request as Pre-mature Exit from the drop down menu.