Trustee Bank as an intermediary provides day to day banking of the funds and banking facilities in accordance with the provisions of the guidelines and directions issued by PFRDA. The service levels of Trustee bank are monitored by NPS Trust. The business activities of Trustee bank are linked with the operational processes of the CRA(s).
Functions of Trustee Bank
Major functions of TB are follows
- Receives contribution funds from Nodal Offices of all sectors pan India and from Subscribers (D-Remit).
- Downloads the incremental PAO id and Transaction id (TID) file from the CRAs system and validate the same with contribution funds received from the nodal offices
- Refunds unidentified funds or funds, which cannot be processed, to the remitting bank/concerned nodal offices
- Consolidates all the contribution records 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.
- Maintains books and records about the fund flow and information flow between Trustee Bank, central recordkeeping agency, subscribers and pension funds to ensure compliance with the guidelines and submit regular reports at such intervals and in such manner as may be required or called for by Authority or its authorized representative
- Provides necessary system and procedure, in order to facilitate fund transfers across various intermediaries of the National Pension System Architecture viz. central recordkeeping agency, nodal offices (Pay and Account Office, Drawing and Disbursing Officer, District Treasury Office, Directorate of Treasuries and Accounts), point of presence, aggregators, pension funds and annuity service providers, and others, as may be specified by PFRDA
- 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).