Thursday, January 19, 2017

Discontinuance of Acceptance of any third party contribution in Tier II account under NPS

PENSION FUND REGULATORY
AND DEVELOPMENT AUTHORITY
B-14/A, Chhatrapati Shivaji Bhawan
Qutab Institutional Area,
Katwaria Sarai, New Delhi – 110 016
Phone: 011-26517507
Website: www.pfrda.org.in

CIRCULAR

PFRDA/2017/3/PD/1

13 January 2017

To,

All Stakeholders in the National Pension System.

Subject: Discontinuance of Acceptance of any third party contribution in Tier II account under NPS

1. Tier II account under NPS is a voluntary savings account which may be opened along with Tier I account under NPS or may be activated by the Tier I account holder on later date. APAN is mandatory for opening Tier II account.

2. Keeping in view the nature of the Tier II account and facility of any time withdrawal, it has been decided to disallow any third party contribution in Tier II account henceforth.

3. All the Nodal Offices/Points-of-Presence are hereby advised to ensure that NPS contributions being made by the Subscriber to his/her Tier II account is being made from his/her own Bank account and through his own legitimate source of funds.

4. CRA and Nodal Offices/POPs are advised to take the following declaration from the subscriber while accepting contribution for Tier II Account:

” I hereby declare that I am the bona fide subscriber of NPS and the contribution being paid for this transaction for Tier II is from my own Bank account and through my legitimate source of funds.”

This declaration may be inserted in the NPS contribution Instruction Slip (NCIS) or on online platform provided by the POPs and also on eNPS platform.

In case the contribution is being made directly through the subscriber’s Bank account, the above declaration may not be insisted upon.

5. All concerned are advised to take note of the same for compliance.

Yours faithfully,

(Akhilesh Kumar)
Deputy General Manager.

Source: http://www.pfrda.org.in/WriteReadData/Links/Discontinuation123b6968790-2754-416c-ac8f-095c9414572e.pdf