PFRDA lets investors switch scheme for better returns

The subscriber has to submit inter platform shift (IPTR-1) form along with the registration form of the sector to which he wishes to migrate, PFRDA said

September 17, 2013 3:38 IST | India Infoline News Service
In order to offer an option for better returns, Pension Fund Regulatory and Development Authority (PFRDA) has relaxed rules to let small investors switch from the subsidised Swavalamban scheme to other schemes.

"There were several requests from NPS Lite/Swavalamban subscribers seeking porting of their permanent retirement account numbers (PRANs) from NPS Lite/Swavalamban to the All Citizen Model of the new pension system (NPS). The PFRDA, after examining the matter, approved the shifting/porting of NPS/Lite/Swavalamban accounts to NPS-All Citizen model and other sectors," PFRDA said in a circular on 20th August.

The subscriber has to submit the following documents to the new nodal office (POP/PAO/DDO etc) who in turn will process the application and forward the document to CRA.

Duly filled in Inter platform shift (IPTR-1) form along with the duly filled in registration form of the sector to which he wishes to migrate.

Submit the PRAN already issued and in absence of PRAN has to provide a notorised affidavit as to the reasons for non-submission.

CRA upon receipt of request would initiate the process for creation of new Permanent Retirement Account (PRA) with new PRAN for the subscriber on the target platform and disable the earlier PRAN of the subscriber in the system. The earlier/old PRAN would not be allotted to anybody else in the system. Also, the earlier record would be tagged to the new account for audit trail as well as for knowing information like if the subscriber has availed Swavalamban benefit under the earlier PRAN or not etc.

CRA would issue necessary instructions for monetization of the accumulated corpus in the old/earlier PRAN and also necessary instructions for crediting of such accumulated corpus received upon monetization into the new PRAN account. The entire activity would be a controlled activity from CRA end.

There would not be any requirement of providing KYC documents once again by the subscriber, if the same have been submitted/collated at the time of subscriber registration under NPS already and the address provided in the new registration for is matching with that of existing record. If there is any change in the address from the existing NPS account address proof need to be submitted afresh.

The CRA would tag the KYC documents to the new PRAN and ensure that all the required details are available.

CRA would print and dispatch the PRAN card directly to the subscriber/aggregator as the case may be and CRA would not be charging any extra charges for the same.

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