NPS subscribers can reclaim the withdrawn but unclaimed amount using the form attached (Annexure) and submitting it to the nodal officers, Points of Presence (POP), APY Service Providers, CRAs, and NPS Trust (NPST), as applicable. Furthermore, the corpus intended for e NPS Subscribers resulting from unsuccessful transactions due to incorrect bank account number claimed from NPST.
PFRDA has noticed instances wherein the corpus of Subscribers, which could not be credited to their Savings Bank (SB) Account because of incorrect bank account details.
According to the PFRDA circular dated February 7, 2023, “There are also instances where subscribers cancel an annuity during the “free look time” and the purchase money intended for the annuity is returned to the NPS system until the subscriber chooses a new ASP. These funds that have been designated as “withdrawn but unclaimed” do not generate investment returns for the benefit of Subscribers.”
My Withdrawal Module (MWM)
PFRDA, through its Central Record Keeping Agencies (CRAs), is in the process of developing a Subscribers’ digital interface “MY WITHDRAWAL MODULE (MWM)” to facilitate the process of recovering such amount, which shall have the following capabilities;
a. The ability to enter the beneficiary bank account data and verify the same by penny drop for name matching between PRAN and Bank Acct.
b. The option to upload evidence of Bank Acct.
c. The option to choose ASP for reissue of Annuity based on Subscriber preference.
According to the press release, “Following the completion of the MWM, any funds remaining after one month without being transferred to the beneficiary’s bank account will be reinvested in the same PRAN in accordance with the investment/PF preference chosen at the time of withdrawal, providing Subscribers with ‘market linked returns’. However, those PRANs have been frozen for any further transactions other than payments towards a lump amount or the purchase of an annuity.”
Ensure correctness of Bank Acct number
According to the PFRDA circular, “The stakeholders need to ensure while processing withdrawal request of the associated Subscribers that the Bank acct/IFSC code are correct to ensure timely payment of corpus. In case of APY, the Service Provider Banks/ Dept of Posts/BCs need to ensure the corresponding Bank Acct of the Subscribers are in the operative status until the closure proceeds of APY credited.”