NPS -PTC

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					New Pension Scheme
Introduction
   The Scheme is regulated by Pension Fund Regulatory
    & Development authority.
   NPS is available to all citizens of India with effect from
    01 May 2009
   The scheme is operated through organizations which
    are designated as Points of Presence (POP)
   POP operates through POP_SP (POP Service
    Provider)
   PFRDA has appointed the DoP as POP to operate
    the scheme through identified Post Offices (POP_SP).
    DoP is one of the POPs appointed by the PFRDA
   The scheme is operated by the National Securities &
    Depository      Ltd      (NSDL)       through      Central
    Recordkeeping Agency (CRA)
Nodal Office
 DoP has established a Nodal Office that
  has been registered with the CRA as POP.
  The Nodal Office is functioning from
  CEPT, PTC Mysore
 The Nodal Office gets the registration of
  POP_SPs (PO) done with the CRA &
  communicates the Registration No to the
  PO concerned.
Registration of POs as POP_SP
• The post offices identified for carrying out NPS
  transactions are called POP_SPs (Point of
  Presence _ Service Providers)
• POP_SPs have to be registered with the CRA
  (Central Recordkeeping Agency) – one time.
• A pre-requisite for the POP_SP registration is
  that the Postal Division concerned has to
  capture the mandatory details of the POP_SP in
  the „India Post Info Site‟ (Link available under
  Quick Links on India Post Home Page). „NPS
  Details‟ option under the menu „Post Office
  Related‟ has to be used.
Registration of POP_SP
   The Nodal Office communicates the
    POP_SP details to the CRA & gets the
    registration number, which is communicated
    to the PO concerned.
   The PO has to enter the Registration No in
    the Meghdoot Point of Sale (Supervisor
    Option – „My Office‟ menu --- „Environment‟
    option). One more number – FC Code also
    needs to be entered. (More details on
    Facilitation Centre will follow)
Types of Transactions Handled by
POP_SP
 Subscriber Registration („Opening of
  Account‟)
 Initial Subscriber Contribution („First
  Deposit‟)
 Subsequent Subscriber Contributions
  („Subsequent Deposits‟)
 Handling Service Requests from
  subscribers (including withdrawal
  requests)
 Grievance handling
How the transactions are carried
out?
 All transactions are carried out through
  ePayment
 A National level Biller called „NPS Trust‟
  has been created. This biller is operated
  by the Nodal Office
 All transactions fetch a uniform service
  charge of Rs 20 + Service Tax.(Rs.3/-)
 Details with screen shots will be covered
  later
Types of Accounts
   Tier I
    ◦ A Non-withdrawable account to which the
      Subscriber shall contribute his/her savings for
      building a retirement corpus. This mandatory.
   Tier II
    ◦ A voluntary savings facility which provides
      liquidity to subscribers, i.e subscribers will be
      free to withdraw their savings whenever they
      wish
Options Available to Subscriber
 Tier I & II
 Tier I
 Tier II activation for Tier I subscribers
 Govt servants appointed after 01 Jan
  2004 are eligible only for Tier II activation
  (since they are already covered under
  NPS, which is equivalent to Tier I account)
 Govt servants appointed prior to 01 Jan
  2004 & other citizens have all the above
  options
PRAN
 Permanent Retirement Account Number
  (PRAN) is a unique number allotted to
  every individual who joins the NPS
 PRAN is allotted by CRA
 PRAN is common to both Tier I & Tier II
 One individual is eligible for one PRAN
  only
IRA Compliance
   Govt Servants appointed after 01 Jan 2004
    are in two categories:
    ◦ IRA compliant – required documentation has
      been done & PRAN has been generated
    ◦ Non IRA compliant – required documentation
      has not been done & PRAN has not been
      generated
   IRA compliance needs to be checked when
    accepting application for Tier II activation
    from this category of subscribers
Who can join NPS?
 Citizens of India (Resident or Non
  Resident)
 Age Limit
    ◦ Min: 18 years
    ◦ Max: 55 years
    ◦ As on date of submission of application to
      POP_SP (PO)
   Comply with KYC norms
Who cannot join NPS?
 Insolvent person
 Individual of unsound mind
 Pre-existing account holders under NPS
 A person below age of 18 years(Minor)
Forms and Documents

 Subscriber Registration Form (UOS-S1)
 PRAN Alloting Form (S1)
 NPS Contribution Instruction Slip(NCIS)
 Tier-II activation Form ( S-10 or S-11)
 Document ( 2 Copies)
 Photo ID Proof
 Address Proof
 Date of Birth Proof
How to enroll in NPS?
 Submit Registration Form (UOS-S1) to
  the POP_SP
 Existing account holders have a different
  form (for Tier II activation)
 NRIs should have account with a bank in
  India to be eligible for joining NPS
 Contributions made by NRI would be
  subject to regulatory requirements
  prescribe by RBI from time to time.
How much to contribute?
   Min amount per contribution: Rs 500
   Min contribution per year: Rs 6000
   Min number of contributions per year: 4
   No max contribution
   No periodicity prescribed
   Contribute through cash, local cheque or
    DD. Outstation cheques not accepted
   Contribution can be made at any POP_SP.
    Contributions made in POs will be
    transmitted to the CRA through the
    ePayment central server
Handling of Documents & Data
   At the time of Subscriber Registration, the
    Registration Form with supporting documents is
    sent to the CRA Facilitation Centre (FC) for
    digitization. No office copy to be kept at POP_SP
   FCs are found in most cities & towns. The forms may
    be sent by hand or by registered post
   NPS Contribution Instruction Slip (NCIS) is the
    document accompanying every contribution. This is
    retained by the POP_SP
   Service Requests have to be accepted and forwarded
    physically to the nodal office
   Transaction data will be uploaded to ePayment
    central server
   The Info flow & Fund Flow is depicted schematically
    in next slide
                                    PFRDA
          POP
&Transaction Data
Service Requests



                                                                 NPS Trust


                                                      Trustee Bank




    POP-SP                            CRA                  NAV       PFMs
                                    (NSDL)




                                                            NPSCAN: NPS Contribution
Subscriber                                                  Accounting Network
                    CRA-FC                                              Information Flow
                    Orientation Workshop for POP by CRA                           18
                                                                        Funds Flow
Steps involved in Subscriber
Registration …
1. Submission of form by subscriber at POP_SP
2. Scrutiny of form & documents, acceptance &
   generation of receipt for Registration
3. Acceptance of NCIS for first contribution &
   generation of receipt
4. Consolidation of Forms at end of day &
   submission to Facilitation Centre (in lots of max
   50 per lot with covering letter)
5. Covering letter to contain POP & POP_SP
   registration number with total number of
   applications attached. Running serial to be
   maintained for covering letters
… Steps involved in subscriber
registration
6.  FC accepts the lot & issues a Provisional receipt
    containing a 15 digit Provisional Receipt Number
    (PRN) for the lot as a whole
7. FC will also issue 17 digit Acknowledgment id for
    each accepted application in the lot (15 digit PRN +
    2 digit running serial)
8. In case of discrepancy in application, FC will reject
    the application & issue Rejection Memo with
    reasons for rejection to POP_SP by mail.
9. Rejected application will not be returned to POP_
    SP
10. It is the responsibility of POP_SP to communicate
    to subscriber about rejection & get new form filled
    up
… Steps involved in Subscriber
Registration
11.   On successful registration of the Subscriber, PRAN kit
      containing the PRAN card, Subscriber Master List, I-
      Pin/T-Pin to access CRA system/Interactive Voice
      Response system and information brochure will be
      dispatched to the Subscriber within 15 days of receipt
      of the application form by FC.
12.   Subscriber/POP-SP can view the status of the
      application form submitted to FC by using the
      acknowledgement number/receipt number on CRA
      website „www.cra-nsdl.com‟.
13.   Once PRAN is generated, the POP (Nodal Office)
      uploads the Subscriber Contribution File (SCF) &
      remits subscription to Trustee Bank
     Important steps are depicted in the schematic
      diagram in next slide
Activities involved in providing the
service
   Subscriber Registration
    ◦ Verification & Acceptance of forms & documents
    ◦ Receipt to applicant containing 17 digit receipt number
    ◦ Receipt number can be used for checking whether PRAN
      is issued
   Initial contribution Processing
    ◦ Acceptance of NCIS for initial contribution
    ◦ Registration receipt number to be used in place of PRAN
      for this transaction
   Regular Subscriber Contribution
    ◦ Transaction can be done only after PRAN is received by
      subscriber
   Subscriber Servicing
   Grievance handling
Subscriber registration
 Postoffice shall facilitate
 registration of
 ◦ Both Tier I and Tier II account
 ◦ Tier I Account
 ◦ Tier II activation
Acceptance of forms
 Subscriber applying fresh Tier-I and Tier-II
  account: Composite Application
  Form(CAF) UOS-S1to be used
 Subscriber who has been registered for
  Tier-I and issued a PRAN card: Form
  UOS-S10
 Subscriber who has been registered for
  Tier-I and not issued a PRAN card: Form
  UOS-S11 to be used
Acceptance of forms contd.,
 Annexure NCIS - with all applications
 Annexure S1 ( Application for Allotment
  of PRAN) – with S1 & S11 only
 All the forms are filled in Bold letters
  (Black Ink is mandatory)
 If PRAN is required in Hindi, the form to
  be used is UOS-SH1
General Checks
 On presentation of the form by the
  subscriber, the counter PA shall carry out
  following checks;
 form presented is the one prescribed for
  the type of account
 Application is duly signed
 All mandatory data fields correctly filled
  by the applicant; incomplete information
  to be pointed out and corrected before
  accepting.
Fresh registration for Tier –I and
Tier-II Account
 PA and Supervisor shall ensure
 A colour photograph of size 3.5 X 2.5 cm
 The signature should be inside the rectangle
  provided in the form
 Applicant must be within the Min (18) and
  Max (55) permissible age, on the date of
  application.
 Date of birth to be validated by valid
  documentary proof.
 Address is complete with pin code.
Verification of documents
 KYC   documents (proof of identity & proof of
  address) to be checked
 Passport or other govt. issued document
  reflecting current or permanent address can be
  accepted as address proof & identity proof
 Bank statement/electricity bills (for address
  proof) should not be dated beyond last six
  months from the date of application.
 In case of non IRA compliant applicant, identity
  proof & address proof has to be taken in the form
  of certificate from head of office only
Verification of form …
 Applicant should sign self-declaration that
  he/ she is not a pre-existing member of
  the NPS.
 UOS-S1 application should not be
  accepted , from an applicant who already
  holds NPS membership.
 In case the applicant is applying for Tier II
  account, the subscriber to provide copy
  of PRAN card, along with application.
… Verification of form
   In case of Tier II applicant, if the name
    appearing in the CRA System is different
    from the name mentioned in the
    application form, the application should
    not be accepted.
… Verification of form
   The Supervisor shall verify that the
    Subscriber name and address provided in
    application form is as per the KYC
    documents. (proof of identity, Age proof &
    Proof of address.)
Verification of form
 Bank details are mandatory for Tier-II
  account
 Supervisor to collect a cancelled cheque
  from the subscriber, the details should
  match with the details given in application
  form for tier –II account.
 For Tier –I account bank details are not
  mandatory
Verification of form
   Nomination details: The percentage of
    distribution among nominees shall be integer
    number
   Pension fund Manager: The applicant shall
    indicate the PFM (only one). If applicant does
    not indicate a choice of PFM , the application
    will be rejected.
   Active and Auto choice options.
    ◦ Active choice: % investment under Equity (E),
      Govt Securities (G) & Corporate Bonds (C), to
      be given by applicant
    ◦ Auto choice: No such details given by applicant
Verification of form
 For “Auto choice” investments are made as
  per pre-determined plan
 For “Active Choice” the subscriber has to
  select % of allocation of contribution across
  three asset classes
    ◦ E, (equity)
    ◦ G(govt. securities)
    ◦ C (corporate bonds)
    ◦ Allocation to equity (E) must not exceed
      50%
    ◦ Total of E, G & C must be 100
    ◦ E, G & C have to be whole numbers
Verification of forms …..
   The applicant can have a copy of completed
    application form duly endorsed under the
    signature of Supervisor.
   In case both investment option and asset
    allocation fields are left blank, the application
    will be treated as “Auto Choice”
   The applicant to provide two copies of KYC
    documents ; one set will be retained by the
    PO , the other to be sent to designated FC
Tier II Activation
 Tier II Activation will be done by Nodal
  Office
 After activation of Tier-II account, the PO
  shall forward such application forms
  periodically, but within 15 days to FC.
Initial contribution processing at
the time of registration
   Counter PA to collect duly filled in NPS
    Contribution Instruction Slip (NCIS) along
    with application form.
   To ensure following points:
    If the subscriber is a pre- Ist January 2004
     Govt. Employee or other than govt
     employee, he/ she can contribute both for
     Tier-I and Tier-II
    If the subscriber is a govt. employee who
     has joined on or after 1st Jan,2004,
     (mandatorily covered under NPS) he/ she
     can contribute only for Tier-II
Initial contribution processing …
  Amount is properly filled by the
  subscriber in relevant columns.
 In case of subscribers already having
  PRAN, 12 digit PRAN must be provided
  in the NCIS by the subscriber.
 In case fresh application for Tier-I and
  Tier-II, the applicant will not have PRAN.
  At the time of regn; the subscriber to
  select New applicant checkbox in NCIS
  form.
… Initial contribution processing
 It is the responsibility of the nodal office
  to fill in the PRAN details on being by the
  CRA so that the contribution can be
  remitted to the Trustee Bank.
 PRAN shall be mandatory for all
  subsequent transactions
… Initial contribution processing
 Minimum prescribed threshold by
  PFRDA is Rs.500 for Tier-I
 And Rs.1000 for Tier-II
 Contribution may be cash, cheque or DD
 The cheque or draft should be crossed in
  favour of Postmaster
 If the contribution through cheque,
  transaction will be done after realisation
  of cheque.
   … Initial contribution processing
    Counter PA: Fill in details on NCIS receipt to the
     subscriber: total contribution minus DoP
     commission and applicable service tax,.
   Illustration:
          subscriber deposits Rs.500 -
          DoP commission 20+S.Tax@10.3% = Rs.23
                                ----------------
                                  Rs. 477/-
   This calculation is done by the ePayment system. The
Commission will be Rs 20 + Service Tax, irrespective of
contribution amount
… Initial contribution processing
   After this counter PA will generate
    receipt of 17 digits
    ◦ First 2 digits indicate contribution type
    ◦ Next 7 digits indicate regn. no. given by CRA
    ◦ Next 8 digits indicate transaction number.
   Receipt in duplicate ;
    ◦ One to the customer
    ◦ Other pasted to the NCIS form
   Data to be uploaded to ePayment central
    server at end of day
Regular Subscriber Contribution
 PO to accept NCIS from subscriber only
  after confirming following details through
  Meghdoot interface:
 Subscriber PRAN No
 Name
 Amount of contribution
    Tier I
    Tier II
Regular Subscriber Contribution
 Counter PA shall fill in details in NCIS,
  amount to be invested after deducting
  PO commission + service tax
 Day‟s transactions will be uploaded to
  ePayment Central Server at day end
 Nodal Office (PTC, Mysore) will
  consolidate & remit the net funds to CRA
 The PO shall retain the NCIS.
Reports & Accounting Procedure
 The procedure is as in the case of
  ePayment
 The subscription collected through
  cheques will be accounted for on the day
  of receipt of intimation of clearance.
 The net amount of Pension fund
  collection, commission of DoP and
  service tax realised will be reflected in
  the HO summary/HO cashbook
Subscriber servicing
the following changes are allowed
 Changes allowed    Documents required
 Name               Supporting
                      documents+PRAN
                      card copy
                     Supporting
   Address
                      documents+PRAN
                      card copy
   Phone/mobile
                     No document
    no./email ID
                      required
Subscriber servicing
 Changes allowed           Documents required
 Subscriber bank           Supporting
  details                    documents +copy of
                             PRAN card if IRA
                             compliant, in case of
                             Tier-II, copy of a
                             cancelled cheque
   Preference for value    No document
    added services, like     required
    email alerts, SMS
    alerts
Subscriber Servicing
 Changes allowed       Documents required
 Change in             Copy of PRAN card
  nomination details
 Employment              No document
  category                 required
Subscriber servicing
 PO to accept
 1. Switch request for change in PFM/or
  investment option for Tier-I and Tier-II
 2. Withdrawal request
 3.Shift to another POP-SP
 4.Print Subscriber‟s account statement
 5.Re-issue of I-PIN/T-PIN/PRAN card
 PO to collect Rs.20/ processing fee
  +taxes for these services
Grievance handling
 Receiving of grievances against any PO or
  any other NPS intermediary in the format
  prescribed and forward them to Nodal
  PO for uploading in Central Grievance
  Management System(CGMS)
 The grievance shall be resolved within 7
  days
     Centralized Model – Role A
Functionality                                           Role A

Contribution Upload/Fund Transfer                  POP (Nodal Office)

MIS Upload                                         POP (Nodal Office)

Subscriber Details Update (Both Tier I & II)       POP (Nodal Office)



IPIN-TPIN / PRAN Request                           POP (Nodal Office)

Withdrawal Request                                 POP (Nodal Office)

Subscriber Shifting Request                        POP (Nodal Office)

TIER 2 Activation                                  POP (Nodal Office)

Grievance Raising/Resolving                          POP / POP-SP

Option to view/generate Statement of Transaction
                                                        POP-SP
/Statement of Holding
1.Configuration in POS Module
Login supervisor option , Select My
office option in main menu Select
Environment.
Enter Office registration No.(NPS) and FC
code(NPS) and click OK button.
Note:- Office Registration number
allotted by CRA and List of FC codes will
be communicated to the respective
Regions.
2.Acceptance and processing of NPS
transaction in Point of Sale Module.
Select Financials in main menu  select
ePayment  select NPS trust  enter the
details
For Fresh registration select Subscriber
name and type name , service type 
Registration Tier- I and Tier II,
Tier I and Tier II amount must be blank.
Click Print     button,
Receipt will be generated with 17 digit
number. (The receipt will be for service
charge of Rs 23)
Contact details :
India Post NPS Nodal office, PTC, Mysore:
Phone: 0821+2441010
Fax : 0821+2441010
Email : nps@indiapost.gov.in

CRA , Mumbai:-
         NationalSecuritiesDepositoryLimited
              4thfloor,'A’Wing,TradeWorld,
      KamalaMillsCompound,SenapatiBapatMarg,
              LowerParel,Mumbai-400013.
               Tel:(022)24994200(60lines)
             Fax:(022)24952594/24994974
              Tollfreenumber:1800222080
           email : info.cra@nsdl.co.in
CRA web site
           www.npscra.nsdl.co.in
End

				
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