PRAN CARD (Permanent Retirement Account Number) : National Pension System - Retirement Plan for All Indian.
We know that National Pension System (New Pension Scheme) has been made mandatory for Central Government employees who joined in their service on or after 1st January,2004. Such employees are enrolled automatically in New Pension Scheme. Such employees are not eligible for old pension and GPF system.
More importantly, until now the pension schemes was available to Govt employees and employees of relatively bigger companies who have provident fund facility . Any other person had to go with private pension schemes provided by insurance companies .
With NPS now its a common person gateway to Pension Schemes
Under the new pension system, CRA will be required to maintain subscriber accounts and issue a unique Permanent Retirement Account Number (PRAN) to each subscriber. In this system, deductions towards NPS will be made from subscriber’s salary on monthly basis and equal amount of contribution will be made by the Government. The accumulated amount will be reflected in his/her Permanent Retirement Account while he/she is working and shall use the accumulations at retirement to procure a pension for the rest of his/her life. Subscribers in this system shall enjoy certain facilities and rights including portability across jobs and locations, choices of selection of Pension Funds and investment schemes, freedom to switch between service providers and nationwide access.
NSDL has built necessary infrastructure for providing CRA services to various stakeholders. CRA has gone operational from June, 2008. CRA would manage NPS Contribution Accounting Network (NPSCAN) related data until it is separated from the CRA applications. The NPS is expected to evolve over a period of time to include unorganized sector, self employed persons and any other citizen of India on a voluntary basis. The record keeping function of unorganized sector shall be decided by PFRDA / GoI independently in due course.
More About PRAN:
However, a registration for Permanent Retirement Account Number (PRAN) is a must to avail benefits of NPS. The NPS is based on a unique individual Permanent Retirement Account Number (PRAN) created for individual subscribers. This PRAN registration is to be done with National Securities Depository Limited (NSDL) who are Central Record Keeping Agency (CRA) for NPS.
Central Record keeping Agency (CRA) is the core infrastructure for the National Pension System and is critical for its successful operationalization.
The subscribers will have complete control on how their contributions and savings in PRAN are managed.
Hence PRAN is like a unique Pan Card which will stay with you lifelong.
The PRAN card is a document with PRAN No, subscriber’s name, father’s name, photograph and signature/thumb impression. The Card is issued by Central Record keeping Agency i.e. NSDL (National Securities Depository Ltd). A subscriber can hold only one PRAN card. The PRAN card will be unique, permanent and portable. The subscriber will get the PRAN card within 20-30 days after the submission of documents. A subscriber cannot open two different accounts in similar name. In case of rejection of application, the amount is refundable.
How You will get Return:
Investors in the New Pension Scheme (NPS) should be a happy lot. In the past three years, fund managers of NPS have given more than double returns compared to the Sensex and some of them have given returns even exceeding that of PPF
Role of CRA in NPS system:
a)The recordkeeping, administration and customer service functions for all subscribers of the New Pension System will be centralised and performed by the CRA.
b)The CRA will issue unique Permanent Retirement Account Number (PRAN) to each subscriber, maintain database of all PRANs and record the transactions related to each subscriber’s PRAN
c)The CRA shall be responsible for receiving funds and instructions from subscribers through the nodal offices, transmitting such instructions and funds to the appointed Pension Fund Managers, trustee Bank, Annuity Service Provider effecting switching instructions received from subscribers
d)The CRA will provide periodic consolidated Statement Of Transaction (SOT) to each subscriber and discharge such other duties and functions as may be determined by the guidelines, directions and regulations issued by the PFRDA from time to time
e)The CRA will be responsible to maintain absolute confidentially of all records, data and information. CRA shall produce all this information as and when called for by PFRDA
f)The CRA will be responsible for timely transfer of subscriber contributions information, timely allocation of these funds by PFs, and accurately crediting and reporting allocation of units into each PRAN.
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