Summary of this article
The PFRDA has launched the StAR NPS platform to fully digitise the National Pension System onboarding.
The platform enables electronic KYC and direct remittance of contributions to the Trustee Bank for faster onboarding.
The subscriber charges remain unchanged at Rs 200 plus taxes.
The Pension Fund Regulatory and Development Authority (PFRDA) has launched the ‘StAR NPS’ online platform in an effort to modernise operationalisation of the National Pension System (NPS). This new digital infrastructure provides wider digital access and simplifies the onboarding process for NPS subscribers across the country.
The platform, developed by BSE Technologies Private Limited (BTPL), will provide technology-enabled assistance for onboarding subscribers. BTPL will serve as the technology Service Provider (TSP) to the points of presence (PoPs) and their associated networks. These will include various categories of pension agents, which may include mutual fund distributors, to register new subscribers more efficiently.
StAR NPS Platform
The platform provides a fully digital onboarding process. While PoPs will be responsible for verifying Know Your Customer (KYC) documents, subscribers’ onboarding, grievance redressal, exercising due diligence, and complying with the requirements and maintaining the records, the pension agents will simply act as facilitators for onboarding without performing any function of the regulated intermediary.
The StAR platform will offer a fully digital onboarding process. Subscribers’ details will be captured electronically and verified with the Central CKYC and DigiLocker-based mechanism. This will shift the process from being paper-heavy to completely digital and is expected to eventually reduce the time required to open an NPS account.
Once the documents are verified, the subscriber will initiate the first contribution. This first contribution and all the subsequent contributions will be remitted directly to the Trustee Bank, without involvement of PoPs in the remittance process. Bypassing the PoPs in the fund transfers will mean a faster settlement cycle, resulting in the settlement Turnaround Time (TAT) to be T+1.
After the payment is received, a Permanent Retirement Account Number (PRAN) will be generated.
The PFRDA has clarified that while the platform is a high-tech solution, the cost to the subscriber remains the same (the current structure). The onboarding fee is Rs 200 plus applicable taxes. Notably, any additional charges related to utilisation of the StAR NPS platform will be borne by the PoPs. No extra charges will be levied on the subscribers.
The platform is currently available to Indian residents between the ages of 18 and 85 years. Under the framework, the central recordkeeping agencies (CRAs) will be auto-assigned using the system-driven round-robin algorithm, and subscribers will be cyclically mapped to the CRAs.
As per the notification, the platform is only to make the process digital; the regulatory responsibilities will remain unchanged. PoPs will continue to be the primary reporting entities under the Prevention of Money Laundering Act (PMLA), KYC formalities, etc. BTPL’s role is limited to providing system integrity, data security, and interoperability within the NPS ecosystem.
FAQs
Who can enrol in NPS through the ‘StAR NPS’ platform?
Resident Indian individuals aged between 18 and 85 years are eligible to enrol themselves via the StAR NPS platform.
What are the charges for onboarding on this platform?
The registration fee for a subscriber is fixed at Rs 200 plus applicable taxes. Any additional platform-specific fees, if any, will be borne by the Points of Presence (PoPs).
How will the contribution funds be handled during registration and further contributions?
The first and all future contributions will be remitted directly to the Trustee Bank through integrated channels, and settlement is expected to be done on a T+1 basis. There will be no need for fund pooling at the PoP level.
