The National Pension System (NPS), a government-managed investment platform, is gearing up to implement significant changes effective from April 1. One of the key alterations involves the introduction of a two-factor authentication process using Aadhaar, aimed at bolstering customer security within the NPS ecosystem.

 

Previously, nodal offices across central and state governments, along with pension-related autonomous bodies, relied on password-based login mechanisms for NPS transactions. However, starting April 1, users will transition to Aadhaar-based login authentication, which will be integrated with the existing user ID and password-based login process.

 

The Pension Fund Regulatory and Development Authority (PFRDA) emphasized that this new login process is designed to address concerns surrounding unauthorized access and potential security threats within the NPS framework. Aadhaar's two-factor authentication system adds layers of verification to ensure the authenticity of fingerprints, enhancing the overall security of NPS accounts.

 

To access their NPS accounts under the new authentication system, users will need to follow these steps:

1. Visit the NPS website and select the 'Login with PRAIN/IPIN' option.

2. Click on the PRAIN/IPIN tab to open a new window.

3. Log in using your username and password.

4. Complete the Captcha verification process.

5. The window will prompt Aadhaar authentication and send an OTP to the registered mobile number.

6. Enter the OTP received to complete the authentication process.

 

The NPS offers subscribers the flexibility to allocate funds across various asset classes through two types of accounts: Tier 1 and Tier 2. While Tier 1 serves as a pension account, Tier 2 caters to voluntary savings preferences.

 

Recently, the PFRDA also outlined new provisions for pension withdrawals under the NPS. According to these rules, subscribers can withdraw up to 25% of their contributions from their individual pension accounts, excluding the employer's contribution.

 

The implementation of Aadhaar-based authentication underscores NPS's commitment to ensuring robust security measures for its subscribers, reinforcing trust and confidence in the platform's integrity and reliability.