Now Register your NACH Debit Mandate without signature verification

          Wait, do not rush yet, only NACH Debit Mandates under Pradhan Mantri Shram Yogi Maan-dhan (PMSYM) are eligible to be registered on the NACH Debit Mandate platform without signature verification.

          The PMSYM seeds were sown in the interim budget 2019-2020 of Shri Piyush Goyal.

Extract from Interim Budget 2019-2020 Speech of Piyush Goyal Minister of Finance dt.February 1, 2019.

Para 37

QUOTE

Half of India’s GDP comes from the sweat and toil of 42 crore  workers in the unorganised sector working as street vendors, rickshaw pullers, construction workers, rag pickers, agricultural workers, beedi workers, handloom, leather and in numerous other similar occupations. Domestic workers are also engaged in big numbers.

We must provide them comprehensive social security coverage for their old age. Therefore, in addition to the health coverage provided under ‘Ayushman Bharat’ and life & disability coverage provided under ‘Pradhan Mantri Jeevan Jyoti Bima Yojana’ and ‘Pradhan Mantri Suraksha Bima Yojana’, our Government proposes to launch a mega pension yojana namely 'Pradhan Mantri Shram-Yogi Maandhan' for the unorganised sector workers with monthly income upto INR15,000.

This pension yojana shall provide them an assured monthly pension of INR3,000 from the age of 60 years on a monthly contribution of a small affordable amount during their working age.

An unorganised sector worker joining pension yojana at the age of 29 years will have to contribute only INR100 per month till the age of 60 years. A worker joining the pension yojana at 18 years, will have to contribute as little as INR55 per month only. The Government will deposit equal matching share in the pension account of the worker every month.

It is expected that at least 10 crore labourers and workers in the unorganised sector will avail the benefit of 'Pradhan Mantri Shram-Yogi Maandhan' within next five years making it one of the largest pension schemes of the world.

A sum of INR500 crore has been allocated for the Scheme. Additional funds will be provided as needed. The scheme will also be implemented from the current year.

UNQUOTE

PMSYM was officially launched on February 15, 2019.

Ministry of Labour, Government of India is the coordinating agency for PMSYM.

The chief implementation partners are Life Insurance Corporation of India (LIC) and CSC e-Governance Services India Limited (CSC SPV).

Pension Fund Manager is LIC and responsible for Pension pay out.

Eligibility Criteria: -

·       Should be an unorganised worker (UW)

·       Entry age between 18 and 40 years

·       Monthly Income Rs 15000 or below

Should not be: -

·       engaged in Organized Sector (membership of EPF/NPS/ESIC)

·       an income tax payer

He/ She should possess:-

·       Aadhar card

·       Savings Bank Account / Jan Dhan account number with IFSC

Features: It is a voluntary and contributory pension scheme, under which the subscriber would receive a minimum assured pension of Rs 3000/- per month after attaining the age of 60 years and if the subscriber dies, the spouse of the beneficiary shall be entitled to receive 50% of the pension as family pension. Family pension is applicable only to spouse.

Contribution by the UW Subscriber: Through ‘auto-debit’ facility from his/ her savings bank account/ Jan- Dhan account from the date of joining PM-SYM till the age of 60 years as per the chart below. The Central Government will also give equal matching contribution in his pension account.  

    

Enrolment Procedure: The Unorganised Worker will be required to visit the nearest Common Services Centre (CSC) and get enrolled for PM-SYM using Aadhaar Card and Savings bank/ Jan-Dhan account number on self-certification basis. First subscription to be paid in cash and auto debit from next month onwards.

Later, facility will be provided where the UW can also visit the PM-SYM web portal or can download the mobile app and self-register using Aadhar number/ savings bank account/ Jan-Dhan account number on self-certification basis.

First subscription to be paid in cash and auto debit from next month onwards.

         This is where the role of (National Payments Corporation of India) NPCI’s role starts. NPCI NACH Division is the implementation partner for the Auto-Debit process i.e Debit PMSYM subscriber’s tagged bank accounts and credit LIC respective scheme account.

         Circular No.008     dt.May 31, 2019 addressed to ‘All NACH Member banks’, lays down the process to be followed by participants in the cycle.

          The participants in this cycle are:

·       Life Insurance Corporation of India (LIC)

·       CSC e-Governance Services India Limited (CSC SPV)

·       Sponsor Bank

·       Destination Banks – Multiple banks  

Key Points of NPCI Circular

Key Point 01) -- The contributions of the pensioner will be collected by sponsor bank through debit of the subscriber’s bank account registered for this scheme through NACH system.

As this scheme is meant for workers of unorganized sector and constitutes an important milestone in providing them with social security, only the mandate data without the images will be pushed to the destination banks in the existing file format. This is to avoid any undue rejection on account of signature mismatch or due to usage of thumb impression in the mandate form by the worker.

The Ministry of Labour & Employment has confirmed that the process has been approved by all the competent authorities including DFS and IBA. Detailed mandate registration process is provided in Annexure.

Key Point 02) – As the image of the mandate will not be transmitted to the destination bank the sponsor bank along with Life Insurance Corporation of India (LIC) and the Ministry of Labour & Employment will work out a mechanism for retrieval of images in case of disputes, mechanism for dispute registration and redressal etc_

Key Point 03) -- Destination bank should use the relevant reasons as provided in Annexure when accepting / rejecting the mandate,

Key Point 04) -- The destination banks shall automate the process of account validation and mandate registration and ensure that response is provided within 2 working days of receiving the mandates through NACH system.

Key Point 05) -- The member banks registering the mandates on the basis of data alone will be Responsible only for registering the mandates with the correct account number as is provided in the data mandate and processing the transactions on the basis of registered mandates with due vaiidation. Other Disputes pertaining to mandate initiation, scheme administration etc will be handled by the Ministry of Labour & Employment & Life Insurance Corporation of India.

Key Point 06) -- CSC will ensure customer related information are validated using customer bank passbook before completing the registration process. Basic details to be validated are:

a.   Customer name

b.   Customer account number

c.   IFSC/ MICR Code

Other customer information as available in the passbook which is required for mandate registration.The onus of recording the correct details of the customer and validation of customer will be on CSC. If there are any dispute at a later date by the customer on the debits to his/her account, the onus of resolving the dispute to the satisfaction of the customer is entirely on LIC.

Customer banks will validate the account number only and accept if it is valid (name validation will not be carried out by the bank).

Key Point 07) -- At the time of transaction presentation by sponsor bank, NPCI will validate transaction data against the mandate data based on the Unique Mandate Reference Number (UIV1RN) generated at the time of mandate registration. The destination banks may also validate the transaction data against the mandate data registered in their internal systems before allowing debit to the customer account.

In the event of any dispute on the validity of the mandate or debit to an account, it will be the responsibility of LIC and the Government to handle the dispute and settle with the customer accordingly.

LIC Site

Ministry of Labour site

Gazette Notification