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Only online withdrawals for NPS from April 2016: PFRDA

PFRDA said it was committed to support the 'Digital India' drive and efforts were being made to make various NPS related services available on online platform

 

The Pension Fund Regulatory and Development Authority (PFRDA) has made it mandatory for the subscribers of New Pension System (NPS) to submit applications online for settlement of withdrawal claims from April 1 next year.
 
According to a PFRDA directive, "with effect from April 1, 2016 only such withdrawal requests raised on online platform will be accepted at CRA (Central Recordkeeping Agency) system for further processing".
 
"Physical withdrawal request forms received at CRA will not be accepted for further processing," the pension fund regulator said.
 
PFRDA said it was committed to support the 'Digital India' drive and efforts were being made to make various NPS related services available on online platform.
 
Making withdrawal process online by which subscribers can raise withdrawal request using the web portal is one of the such initiatives, it said.
 
"This will make withdrawal process paperless to a great extent and seamless and exit claims of the subscribers can be settled in least possible time," it said.
 
NPS has been implemented for all employees (except armed forces) joining central government on or after January 1, 2004.
 
NPS has been made available to every Indian citizen from May 2009 on a voluntary basis. A subscriber can exit NPS owing to superannuation, premature exit and death.
 
Disclaimer:  Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
 

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COMMENTS

Silloo Marker

1 year ago

The NPS is open to all Indian citizens, including those working in the un-organised sector, like domestic servants, small street vendors etc. Most of these people certainly don't own computer devices and are very often almost totally illiterate. If all claims are to be made only online, the Pension Authority should provide free services to do the online application for them. If they go to private agents to have online work done, they would have to pay quite heavily. Is this fair? Silloo Marker

Silloo Marker

1 year ago

The NPS is also open to any Indian citizen. What happens to people in the unorganised sector like servants or small street vendors etc. who do not have access to any computer device, besides often being almost totally illiterate. If only online applications for withdrawal are to be accepted, the pension authority must provide free service to such people by putting their claims online for them. If this is not provided, they would be left high and dry. Private operators may also do the online application for them but then the fees for such services can be quite high. Is this fair?

MG Warrier

1 year ago

New Pension Scheme (later rechristened as National Pension System was introduced in December 2003, prospectively for central government employees (except those in defence services) joining service from January 1, 2004. For those affected, it was ‘substitution of existing defined benefit pension scheme by something very similar to contributory provident fund with no guaranteed return’.
There is no evidence to show that the shift was after any study about the social security aspect inherent in a pension scheme. The primary ground for denial of pension benefits for ‘future’ employees was the unfunded pension liability of central government which exceeded three lakh crore of rupees in 2003. The ‘Pay As You Go’ method of meeting pension liability was being adversely commented. GOI refused to look at the suggestion to start funding pension liabilities. NPS was consciously excluded from the terms of reference of VI Pay Commission.
In 2006-07, ING Group and Indian Institute of Management, Bangalore undertook a joint research on pension systems in India at the instance of ING Global Retirement Services. The findings are available in the form of a 588 page book “Facing the Future: Indian Pension Systems”(By David J. W. Hatton, Naren N. Joshi, Fang Li, R. Vaidyanathan, S. Jyothilakshmi, Shubhabrata Das and Sankarshan Basu. Publisher: Tata McGraw Hill Rs625). This well-researched document did not find any takers in PFRDA or the concerned ministries in GOI.

MG Warrier

1 year ago

The VII Pay Commission has examined the implementation of NPS and listed several deficiencies. Chapter 10.3 deals with NPS. The following excerpt from the report will give an idea, how deep the mess is:
"The Commission notes that no department of Government of India is taking ownership of the NPS. The Commission recommends that a Committee consisting of Secretary, Department of Financial Services, Secretary, Department of Pensions and Pensioners Welfare and Secretary, Department of Administrative Reforms and Public Grievances may be constituted to review the progress of implementation of NPS. The Commission also recommends that steps should b e taken for establishment of an Ombudsman f or redressing individual grievances relating to NPS."

NDTV says it received show notice from ED on FEMA violations; ED charges amount involved is Rs2030 crore
NDTV told BSE that Prannoy and Radhika Roy, KVL Narayan Rao and NDTV Studios have received show cause notice from ED on alleged contraversions of provisions of FEMA 
 
New Delhi Television Ltd (NDTV) said it has received a show cause notice from the Enforcement Directorate (ED) regarding alleged contraversions of provisions of Foreign Exchange Management Act, 1999 (FEMA).
 
In a regulatory filing, NDTV said, "...the company along with Dr Prannoy Roy, Executive Co-Chairperson, Mrs Radhika Roy, Executive Co-chairperson, Mr KVL Narayan Rao, Executive Vice Chairperson and NDTV Studios Ltd (erstwhile subsidiary of the Company since merged with the Company) have on 19 November 2015 received a show cause notice from the Directorate of Enforcement as to why adjudication proceedings should not be held for alleged contraventions of provisions of FEMA."
 
According to the ED, “investigation under FEMA in the matter of NDTV Ltd. has revealed financial transactions in FEMA contraventions by NDTV Ltd. by availing the facilities provided by RBI relating to Overseas Direct Investment (ODI) and Foreign Direct Investment (FDI) as under   
 
1. NDTV Ltd. through its step down subsidiary in UK, NDTV Networks Plc. (NNPLC) was permitted by FIPB to raise overseas funds through public offerings of equity shares and through AIM listing at London Stock Exchange and remit those funds in its group companies. But NNPLC raised funds by way of overseas loan , bonds and optionally convertible preference shares.  NDTV Ltd. has violated Regulation 5 (1) of FEM (Transfer or Issue of Security to Persons resident outside India) Regulations, 2000 issued under Section 6 (3) (b) of FEMA by not complying with the terms and conditions of FIPB approval.
 
2. NDTV Ltd. raised funds outside India to the tune of USD 170 Million through NNPLC and brought USD 163.78 Million (Rs. 725.56 crore approximately) in its group companies in India during the period March, 2007 to October, 2010.  RBI has pointed out that bringing funds in its group companies by NDTV Ltd. from NNPLC  is not a genuine and bonafide business activity and is a contravention of Regulation 6 (2)(ii) of the FEM (Transfer or Issue of any Foreign Security) Regulations, 2004 issued under Section 6 (3) (a) of FEMA. 
 
3. NDTV Ltd. in its group companies in India further received USD 83,909,977 and USD 21972 from its overseas subsidiaries namely NDTV Mauritius Media and NDTV Worldwide Mauritius Ltd. under the automatic route of RBI in the guise of FDI. RBI has pointed out that bringing funds in its group companies by NDTV Ltd. from its overseas subsidiaries is not a genuine and bonafide business activity and is a contravention of Regulation 6 (2)(ii) of the FEM (Transfer or Issue of any Foreign Security) Regulations, 2004.  
 
Thus, NDTV Ltd. received an amount of Rs. 1113.31 crore approximately in total in contravention of FEMA provisions.
 
4. NDTV Ltd. has issued Corporate Guarantees (CG) in favour of NNPLC to the tune of USD 84 Million relating to the arrangement of funds of USD 170 Million and loans taken by NNPLC which were not reported to RBI. RBI has pointed out that not seeking RBI approval and not reporting to RBI to issue a Corporate Guarantee is a contravention of Regulation 6(2)(vi) and Regulation 6(4) of the FEM (Transfer or Issue of any Foreign Security) Regulations, 2004.
 
5. NDTV Studios Ltd. (another group company of NDTV Ltd.) has deposited a sum of Rs. 200 crore with Bank of Baroda, Corporate Financial Branch, Parliament Street, New Delhi relating to USD 70 Million Loan by NNPLC. NDTV Studios Ltd. has contravened the provisions of Section 3 (d) of FEMA. 
 
6. NDTV Ltd. bought back the transferred shares of its group companies namely NDTV Labs Limited, NDTV Imagine Limited, NDTV Convergence Limited, NDTV Lifestyle Limited and NGEN Media Services Ltd. to the tune of Rs. 296.74 crore from NNPLC to its group companies namely NDTV Lifestyle Holdings Limited and NDTV Networks Limited.  RBI has pointed out that such transactions are in contravention of Regulation 6(2) (ii) of the FEM (Transfer or Issue of any Foreign Security) Regulations, 2004. Thus NDTV Ltd. has contravened this Regulation read with Regulation 10B of the FEM (Transfer or Issue of Security by a Person Resident outside India) Regulations, 2000, for the amount of Rs. 296.74 crore.
 
7. Thus in the Show Cause Notice issued, NDTV Ltd. has contravened the provisions of the above said provisions of  FEMA and Regulations issued thereunder, in which the amount involved is Rs. 2030.05 crore approx.
 
Further investigation under FEMA is being carried out.”
 
NDTV maintained in the filing that it “has been advised that the allegations of the contraventions of provisions of FEMA in the show cause notice are not legally tenable and the Company will reply to the same within due course of time.”

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