The proposed amendments could expand the network through which people can access NPS and increase the availability of digital onboarding and servicing, particularly in areas with limited access to pension services.
PFRDA has proposed two distinct modes for PoPs — physical and digital. Under the proposed framework, digital mode would cover exclusive digital onboarding, contribution transfers and processing of service requests through platforms authorised by the regulator. Any model combining physical and digital services would be treated as physical mode.
More entities could offer NPS services
The draft proposes widening the pool of entities eligible to become PoPs. Apart from entities regulated by financial-sector regulators, the framework could include certain entities regulated by non-financial regulators, co-operative societies, limited liability partnerships, societies or associations and trusts, subject to eligibility conditions.
For physical-mode NPS PoPs, the draft proposes a requirement of at least five branches or offices in India. Digital PoPs would instead need the required technology infrastructure to connect with platforms authorised by PFRDA.
For several categories of applicants, the proposed framework retains a minimum net worth of ₹2 crore, including minimum capital or share capital of ₹50 lakh, depending on the entity type.
For subscribers, a wider pool of eligible PoPs could mean more avenues to access NPS and obtain servicing support. However, the actual impact will depend on how many entities ultimately register under the revised framework.
Digital onboarding and servicing could get a clearer framework
PFRDA has proposed a separate application framework for digital PoPs. Applicants choosing the digital route would not have to pay an application fee to PFRDA, while the application fee for physical-mode registration is proposed to increase from ₹10,000 to ₹25,000, plus applicable taxes and levies.
The regulator has also proposed separate digital collection accounts for each pension scheme for PoPs undertaking digital onboarding.
For an NPS subscriber, this could provide a clearer regulatory framework for digital transactions and servicing. The proposal, however, does not by itself mean that existing subscribers will have to change how they contribute or manage their accounts.
PoPs to remain responsible for subscriber losses caused by fraud or negligence
The proposed amendments retain the responsibility of PoPs for the acts or omissions of their NPS Mitras, the proposed new name for pension agents.
PoPs would remain liable for the acts of NPS Mitras in carrying out their functions and would have to indemnify subscribers for losses caused by established fraud or negligence on the part of the PoP or its NPS Mitra.
The draft also requires PoPs and NPS Mitras to follow conduct standards, including avoiding conflicts of interest, providing updated information to subscribers and refraining from misleading or abusive conduct.
‘Pension Agent’ proposed to be renamed ‘NPS Mitra’
PFRDA has proposed replacing the term “Pension Agent” with “NPS Mitra” in the regulations.
NPS Mitras could continue to undertake limited distribution and servicing functions, such as helping prospective subscribers with registration forms, receiving service requests and collecting KYC documents. The PoP would continue to be responsible for KYC, anti-money laundering and counter-terror financing compliance.
The proposed rules also require PoPs to maintain details of their NPS Mitras and publish such information on their websites.
Five-year renewal proposed to be replaced with annual fee
The draft proposes replacing the existing five-year renewal cycle with an annual fee mechanism for PoPs.
The annual fee is proposed at 1% of the charges earned from NPS and other pension schemes in the preceding financial year, subject to a minimum of ₹3,000 a year. PoPs would have to deposit the fee within 60 days from the end of each financial year.
This change applies to PoPs rather than directly to subscribers. The draft does not propose a corresponding change in the NPS subscriber’s contribution or account structure through this provision.
PFRDA has invited stakeholders to submit comments on the exposure draft by October 2, 2026. The proposals will therefore need to go through the consultation process before any final amendments are notified.
