As per the PFRDA’s round dated October 25, 2023, profitable penny-drop verification, together with title matching, is critical for processing exit/withdrawal requests and updating subscriber checking account particulars.
If the CRA is unable to verify the penny drop, the pension regulator acknowledged that no requests for exit/withdrawal or adjustments to the subscriber’s checking account info will likely be allowed.
If penny drop verification fails, whatever the cause, the CRA will take it up with the related nodal workplace/middleman to amend the subscriber’s checking account info following the right due diligence course of.
The CRA will notify the subscriber of the penny drop failure by cellular and e-mail, advising them to contact the nodal officer or POP. Concurrently, the CRA will inform the nodal workplace or POP of the penny drop verification failure.
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“The nodal places of work and POPs are to be suggested to replace the small print within the CRA system by the S2 kind or as per the set course of, put up which the processing of the exit/withdrawal may be taken up together with re-verification of the checking account by penny drop verification. The withdrawal request proceeds are to be credited to the wage checking account of the subscriber within the case of the federal government sector, because it has been stipulated vide Round No. PFRDA/2015/27/EXIT/2 dated twelfth November 2015,” PFRDA stated.
It is price noting that when penny drop verification has beforehand failed, the CRA will undertake thorough verification and extra due diligence processes earlier than executing exit or withdrawal requests.
Causes for failure in penny drop
- Title mismatch
- Invalid/Improper IFSC code
- Account dormant/frozen
- Account is inactive
- Account doesn’t exist
- Account closed
- Account is transferred
- Credit score freeze
- Invalid account quantity/account kind
- Account kind mismatch, and many others.
The availability applies throughout sectors, together with NPS, APY, and NPS Lite, for all sorts of exits/withdrawals and checking account particulars modifications, as specified by the PFRDA.