Section 24 of The Unified Pension Scheme: Intermediaries and Entities implementing UPS
Intermediaries and Entities implementing UPS Unified Pension Scheme
24. Intermediaries and Entities implementing UPS. – (1) UPS shall be implemented through NPS architecture, by such of the intermediaries registered with the Authority, namely National Pension System Trust, Pension Fund, Central Recordkeeping Agency, Trustee Bank and Custodian of Securities and the registration granted by the Authority under the Act and in terms of specific regulations shall enable such intermediaries to undertake activities under UPS, during the tenure of such registration. The nodal offices of the Central Government including Head of Office, PAO, DDO and CDDO shall also be part of the implementation process. (2) The entities involved in implementation process shall perform their roles, duties, obligations and responsibilities in accordance with the provisions of the Act, rules, regulations and any directives and instructions of the Central Government and the Authority, as the case may be.
(3) The performance of various obligations towards subscribers in discharge of its functions and the observance of code of conduct laid down under the specific regulations, under which such intermediary has been registered by the Authority shall mutatis mutandis apply to them under these regulations.
(4) The intermediaries entrusted with payout of benefits to subscribers including withdrawals and who hold and provide information and instructions for effecting such pay out, shall conduct its activities with utmost vigil and take measures to prevent unauthorised transactions. It shall be the duty of such intermediaries to prevent any fraud or mismanagement, causing any loss or prejudice to subscribers, in any manner. Towards this purpose, the intermediary shall deploy appropriate technology and trained human resources. The Key Managerial Personnel shall have the overall responsibility of discharging the obligation by the intermediary concerned.
Explanation: “Key Managerial Personnel” shall have the same meaning as defined under the Companies Act, 2013.
(5) An intermediary shall ensure appropriate measures and secure its systems, commensurate to its roles and responsibilities, so as to prevent any fraud or mismanagement and avoid any loss to subscribers, either of monetary or non-monetary nature. Towards this purpose, the intermediary shall conduct periodic checks and report to its management and shall thereafter report to the Authority, through its compliance officer. Besides the intermediary concerned, other entities involved with implementation of UPS shall also devise suitable systems and procedures to avoid any prejudice to subscribers, and the Central Government. The intermediary shall submit a compliance certificate(s) to the Authority in respect of its activities under UPS while submitting the compliances under NPS, as stipulated under the respective intermediary regulations.
(6) The intermediaries and entities shall ensure seamless provision of services to subscriber by working in close coordination with each other and sharing of such facilities and information as is required. The National Pension System Trust shall be responsible to ensure such coordination as is required.
(7) Where any deviation or breach has been noticed by the Intermediary or the entity, it shall forthwith take corrective measures and remove any prejudice caused to subscribers or any group of subscribers, including provision of suitable restitution or compensation, as if such subscriber was not adversely affected, in any manner, notwithstanding any proceedings that may be initiated by the Authority.
(8) The functions, roles, duties, obligations and responsibilities of the intermediary towards provision of services under UPS, shall be in addition to and not in derogation of its functions, duties and responsibilities as laid down under the Act, rules and other regulations notified by the Authority.