No NPS Account Without OTP or Digital Signature: What Does This Mean for Investors?

New Delhi: The number of investors in the National Pension System (NPS) continues to rise. Meanwhile, the pension regulator, PFRDA (Pension Fund Regulatory and Development Authority), has introduced a new rule for online NPS registrations. As per this rule, submitting the online registration form will now require both OTP (One-Time Password) and a digital signature.

More Secure NPS Registration Process
The NPS account registration process is becoming even more secure. As per a recent circular by PFRDA, investors must now verify their identity using an OTP sent to their mobile phone or a digital signature (e-Sign) when submitting their online registration form. This update modifies a circular issued on June 15, 2020, which had previously provided OTP or e-Sign as optional verification methods.

According to the new guidelines, when opening an NPS account online, applicants will be required to authenticate their form using OTP or e-Sign. Additionally, the final declaration of terms and conditions at the end of the online form must be approved via OTP or e-Sign. Without this authentication, the form will not be considered complete.

Why the Change?
PFRDA stated that this decision aims to make the entire registration process more secure and trustworthy for customers. Following the release of the new circular, the pension regulator has instructed all Central Recordkeeping Agencies (CRAs) and Points of Presence (POPs) to update their systems and online processes in line with these new rules.