PFRDA Implements Aadhaar-Based Access for Enhanced NPS Security

The Pension Fund Regulatory and Development Authority (PFRDA) has taken a significant step towards enhancing the security of National Pension System (NPS) transactions. In a recent circular, PFRDA announced the implementation of a new authentication system using Aadhaar-based access for the Central Recordkeeping Agency (CRA) system under the government sector.
 
Presently, nodal offices under central and state governments, along with autonomous bodies, utilize a password-based login for accessing the CRA system for NPS transactions. However, to bolster security measures and protect the interests of subscribers and stakeholders, PFRDA has decided to introduce additional security features through Aadhaar-based authentication for CRA system login.
 
The new authentication system will integrate Aadhaar-based login authentication with the existing user ID and password-based login process. This integration will ensure two-factor authentication, thereby enhancing the overall security framework of the CRA system. The proactive initiative aims to establish a secure environment for all NPS activities conducted by government offices and autonomous bodies.
 
The implementation of the Aadhaar-based login authentication is currently under development and is scheduled to go live on April 1, 2024. To facilitate a smooth transition, the Central Recordkeeping Agency will provide detailed standard operating procedures and conduct extensive engagement sessions with government nodal offices. These efforts aim to familiarize nodal officers with the changes and ensure seamless adoption of the new authentication system.
 
Signed by K Mohan Gandhi, Chief General Manager, the circular mandates all government sector offices and autonomous bodies to acknowledge the directive. Furthermore, they are instructed to establish the necessary framework for the implementation of Aadhaar-based login and authentication in the CRA system for performing all NPS-related activities.
 
This proactive measure by PFRDA underscores its commitment to enhancing the security and integrity of NPS transactions, safeguarding the interests of subscribers and stakeholders alike.
 

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Changes in Our Business Model
 
 
25th Sept 2020
 
Greetings from Moneylife Advisory Services
 
Between financial years 2019-21, SEBI has come up with extensive changes to investor advisor regulations. On Sep 23, 2020, SEBI had issued new additional guidelines. This comes just two months after extensive changes announced in July 2020. Earlier, in December 2019 there was an ad hoc circular
 
As a result of these changes, IAs, cannot accept fees through credit cards, will have to sign a 26-clause investor agreement, have to maintain physical record written & signed by client, telephone recording, emails, SMS messages and any other legally verifiable record for five years. IAs were already asked to record the suitability and rationale for every piece of advice given, sign them and store them for five years.
 
While these extensive and frequent changes, designed to strengthen the conduct of IAs are well-meaning, these have sharply increased compliance efforts and cost. We, being online advisors, find many of changes harder to implement, compared to advisors working in the physical space. We will have to have an army of advisors, administrative and tech staff to be compliant. If we do this, we will have to divert money to these areas and the cost of our service will double. We want to remain the least-cost service in the market to benefit more and more people. In the circumstances, we are forced to change our business model from “advisory” to “research”. This will mean the following:
 
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Debashis Basu
Founder