Discontinuation of Aadhaar based authentication for opening of NPS accounts by the POPs through online module
PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY
B-14/A, Chhatrapati Shivaji Bhawan,
Qutab Institutional Area,
Katwaria Sarai, New Delhi-110016.
Website : www.pfrda.org.in
Circular
Circular No. PFRDA/2018165/POP/3
Date: 07th December, 2018
To,
All POPs
Subject: Discontinuation of Aadhaar based authentication for opening of NPS accounts by the POPs through online module
The Hon’ble Supreme Court vide its order dated 26th September, 2018 has struck down Section 57 of the Aadhaar Act, which allowed private companies to use the 12 digit biometric ID based e KYC. Earlier, Section 57 of the Aadhaar Act, 2016 allowed the use of 12 digit unique ID (Aadhaar Number) for establishing the identity of an individual for any purpose, whether by the State, Corporate or a person.
2. Further, vide PFRDA’s letter No. PFRDN17/01/02/0001/2017-SUP-CRA-Part(1) dated 28.11.2018, both Central Recordkeeping Agencies (CRAs) were instructed to stop the usage of Aadhar for authentication service from 01.12.2018 and examine legally valid alternatives to various affected functionalities.
3. In view of the above, all Points of Presence (POPs) under National Pension System are directed to immediately stop the Aadhaar-based authentication system for KYC under online module of PRAN generation in line with the Hon’ble Supreme Court’s judgement on the matter. However, Aadhaar may be accepted from the subscriber in the physical form by branches of the POPs under NPS as one of the identity proof.
4. This circular is being issued in exercise of powers conferred under Section 11 of the PFRDA Act, 2013.
Ashish Kumar
General Manager
