PFRDA Allows OTP-Based Authentication for Fully Paperless NPS Account Opening

PFRDA Allows OTP-Based Authentication for Fully Paperless NPS Account Opening

Pension Fund Regulatory and Development Authority has enabled OTP-based authentication for paperless onboarding of National Pension System (NPS) accounts, further simplifying the digital registration process for subscribers. The decision was announced through a circular issued on January 2, 2026.

Under the revised guidelines, applicants opening an NPS account online can now authenticate their registration either through e-Sign or by using a One Time Password (OTP) sent to their registered mobile number.

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The circular clarifies that consent and all mandatory declarations required for NPS account opening must be explicitly obtained from the applicant at the end of the online process through e-Sign or OTP authentication.

The new instruction partially modifies an earlier circular issued in June 2020, which had introduced digital submission of NPS account opening applications. By formalising OTP-based authentication as a standard option, PFRDA aims to make the onboarding process more accessible, especially for subscribers who may not be able to use e-Sign facilities.

PFRDA has directed Central Recordkeeping Agencies (CRAs) and Points of Presence (POPs) to update their systems and align subscriber onboarding workflows in line with the revised process. The authority said the move is part of its broader effort to promote ease of access, reduce paperwork and support digital-first pension services.

The circular has been issued under the powers granted to PFRDA by the PFRDA Act, 2013, and is effective immediately, paving the way for faster and fully paperless NPS account registration across the country.