NPS KYC guidelines update: PFRDA allows digital onboarding for NRIs and OCIs

This amendment supplements provisions for KYC/AML/CFT and lays down the KYC/CDD process for such subscribers.

PoPs/intermediaries are required to obtain and verify the Proof of Identity (PoI) and Proof of Address (PoA) at the commencement of an account-based relationship.

In Para 8.2, a new provision states that in digital onboarding of NRI/OCI subscribers, capturing a live photograph, an admissible digital copy of an OVD, and geo-coordinates recorded electronically by an authorised official shall be applicable, with relaxation of physical presence in India.

GPS location must match the latitude and longitude of the country in the PoA and prevent spoofed IP connections. Digital onboarding applications shall incorporate liveness detection, randomness checks, and anti-spoofing/anti–deep-fake measures.

A new Para 8.3(a) specifies admissible digital OVDs for NRIs and OCIs.

For NRIs, the passport is accepted as PoI and PoA, and PoA may also include residence permit, work permit, foreign national ID or government-issued overseas driver’s licence. Passports containing foreign addresses are valid PoA with attestation by competent authorities.

For OCIs, the OCI card and foreign passport are PoI, while PoA must contain the current overseas address.

Documents must be valid at onboarding, and forged or falsified documents shall result in rejection and may be reported under PMLA. NRI and OCI subscribers are not eligible for NPS Tier II accounts.

Para 8.4.3 allows all KYC modes for updation and permits updation at any overseas branch of the RE, with relaxation of physical presence for re-KYC. Periodic updation may be via digital means or self-attested and duly attested copies of documents, and subscribers shall reconfirm FATCA/CRS declarations.

Enhanced due diligence provisions apply to such subscribers, including restrictions on mobile number changes, PAN verification, first transaction from a KYC-complied bank account, and classification as high-risk for non-face-to-face onboarding.

Provisions on contributions, remittances, FEMA compliance, and withdrawal norms for NRIs/OCIs are also included. The circular is issued under section 14(1) of the PFRDA Act, 2013 and is effective from the date of issuance.