New Delhi: Now the online Aadhaar KYC process can also be used to open the National Pension System i.e. NPS. Pension fund regulator PFRDA has approved it. This NPS will facilitate the process of e-KYC for the customer. Previously, the customer had to be present for KYC at the stage of physical attendance. This delays the withdrawal and exit process. But now the facility of video KYC will be made much bigger by Aadhaar. With this, the KYC process will be completed in minutes.
E-KYC gained momentum in lockdown
In fact, the RBI initiated the social distance maintenance e-KYC and V-KYC process in the lockdown. With the expansion of mobile network in the country, e-KYC will now become commonplace. In the 2021 budget, Rs 1,500 crore has been allocated for the adoption of digital methods in financial services.
No tax benefit for investment in NPS Tier-2
Those who want to contribute to NPS can join e-NPS by providing Aadhaar details and PAN or other KYC details. An NPS account can be opened between the ages of 18 and 65. There are two types of accounts. Tier-1 and Tier-2. The Tier-1 account is a pension account, while the Tier-2 account is an investment account. This is a voluntary savings account linked to PRAN. The income tax benefit is available in one account. While there is no tax benefit on investment in Tier 2 account.
The National Pension System (NPS) is a government retirement savings scheme. It was launched by the Central Government on January 1, 2004. The scheme is required for all government employees to join after this date. Since 2009, the scheme has also been opened to people working in the private sector.