NPS funds are deposited into the bank account of the customers at the time of exit or withdrawal from the scheme by the Pension Fund Regulatory and Development Authority (PFRDA), the organization that runs the National Pension System (NPS). Instant bank account verification has been made mandatory for crediting .Bank account verification will be done as per penny drop method.
The notification issued by PFRDA states that verification as per the penny-drop method is required to process requests for exit or withdrawal from the NPS scheme and to make amendments in the bank account details of subscribers.
Money will not be withdrawn without verification
If the CRA fails to do the penny drop verification, exits and withdrawals from the NPS scheme or changes in the subscriber’s bank account cannot be made.
CRA will send verification information
If the penny-drop verification fails, the CRA will have to send the information to the subscriber’s mobile number and e-mail ID and advise them to contact their nodal officer and POP for the same. Apart from this, CRA will have to inform the nodal officer and POP of that subscriber about the absence of penny-drop verification.
Let us tell you, whenever the penny drop verification of a subscriber fails, the CRA does additional verification. Additionally, utmost care is taken before processing any withdrawal request.
Reason for penny drop verification failure
- Invalid account number/account type
- Invalid/wrong IFSC code
- name not correct
- Account Inactive
- account closure
- Account does not exist
- account transfer
- credit freeze
- Account type mismatch
