Once you start contributing to the NPS, the CRA informs the trustee bank of your chosen pension fund manager
The monopoly of NSDL e-Governance Infrastructure as the Central Recordkeeping Agency (CRA) for the National Pension Scheme (NPS) is all set to change with Karvy Computershare becoming the second CRA for the NPS soon. Last month, PFRDA announced of this change, with the idea of creating competition to improve efficiency and pricing of the services provided by the CRA.
The CRA plays a vital role in the efficient functioning of the NPS by not only acting as a repository of data, but it is also responsible for administration and customer service functions. It is also the nerve centre of various entities that work towards smooth functioning of NPS, including the trustee banks, Point of Presence (PoP) and pension fund managers. It is for CRA to capture your credentials the moment you open an account and issue the Permanent Retirement Account Number (PRAN).
And, once you start contributing to the NPS, the CRA informs the trustee bank of your chosen pension fund manager because fund managers do not have direct access to the NPS account holders. NSDL e-Governance Infrastructure presently charges Rs 50, Rs 190 and Rs 4 respectively. The Karvy promoted CRA may charge lower. For NPS members, the lower cost of CRA may not have much impact as its functions are in the backend.