"New Pension Rule Coming April 1st: What Changes Await You?"
From April 1st, a new rule related to pensions will come into effect. The Pension Fund Regulatory and Development Authority (PFRDA) has stated that this process has been initiated to prevent any risks or hazards, aiming to alleviate concerns associated with it.
To enhance the security of the National Pension System (NPS) even further, PFRDA has made significant changes. They have initiated the Two Factor Authentication (2FA) process to reach the Central Recordkeeping Agency. This will be applicable to all customers starting from April 1st. This means that both new entrants and existing customers under NPS will have to undergo the Two Factor Authentication process.
No one will be allowed to log in to NPS without Two Factor Authentication. The regulatory authority stated that after this new step, users will have to go through Aadhaar-based login authentication process from April 1, 2024. PFRDA has stated that the initiation of this process is to prevent any risks or hazards, aiming to alleviate concerns associated with it.
How does the login work now?
According to PFRDA, nodal offices under the central and state governments, along with autonomous bodies related to pensions, currently use password-based login for NPS transactions. Strengthening the authentication and login system with this new upgrade is a step forward. It will aid in security against fraud and cyber-attacks.
Why was this rule necessary?
PFRDA aims to present a secure website and login system for all NPS activities conducted through government offices and autonomous bodies. For this, integration of Aadhaar-based login authentication has been envisaged. If a user enters the wrong password five times consecutively, the NPS account will be immediately blocked, considering security. After being blocked, the NPS account will need to reset the password for recovery. For this, the user will have to answer secret questions or apply for an I-PIN.
It is noteworthy that Central Record keeping Agencies (CRA) are actively engaged in ensuring orderly changes in this system. Changes are being made through the government's nodal office's senior officers. Nodal officers will continue to collaborate to familiarize ordinary users with the upcoming changes.
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