Functions of Trustee Bank
Trustee Bank as an intermediary is responsible for the day-to-day flow of funds and banking facilities in accordance with the guidelines/ directions issued by the Authority under NPS. It receives NPS funds from all Nodal Offices and transfers the same to the Pension Funds / Annuity Service Providers/other intermediaries as per the operational guidelines.
Major functions of TB are follows:
- Receives NPS funds from Nodal Offices of all sectors pan India. In case of online transfers, Nodal Offices are required to provide the details of transaction id and PAO id in the sender-receiver information section of electronic message. In case of physical mode of payment, Nodal Offices are required to submit Contribution Submission Form (CSF) generated from CRA system along with the cheque.
- Verifies the amount of payment made by the Nodal Offices, with the amount as per the Subscriber Contribution File (SCF) uploaded by Nodal Offices on CRA system and transfers the funds to PFMs for investment in time bound manner.
- The funds having incomplete information or with any other discrepancy are returned back to the respective accredited banks of the Nodal offices for credit to the source account.
- Consolidates all the contribution records received through various collecting branches and prepares Fund Receipt Confirmation (FRC) file.
- Transfers funds based on the instructions received from CRA(s) during the settlement process to various entities.
- Transfers fund electronically for disbursement from withdrawal account to the concerned account(s) as per the instructions.
- Uploads statement of closing balance of Trustee Bank account to CRA system.
- Daily reconciles the balances in various CRA(s) related accounts of Trustee Bank with the details available in CRA system within committed turnarounds.
- Retains all the records of Nodal Offices contributions and documents pertaining to all activities. Provides periodic reports as per the parameters and frequency defined by PFRDA.
- Ensures that internal control procedures provide reliable and valid information for monitoring operations and performance, as and when required by PFRDA or its authorized intermediary.
The business activities of Trustee bank are linked with the other processes at CRA(s).