NPS Rules: If you’re considering investing in the National Pension System (NPS) or are thinking about opening a new pension account, this information will be beneficial for you. The Pension Fund Regulatory and Development Authority (PFRDA) has outlined 10 significant changes to the Point of Presence (PoP) rules that govern NPS-related services. The primary aim of these changes is to enhance the accessibility and digital nature of NPS services. However, it’s important to note that these changes are still in the proposal phase. PFRDA is inviting public feedback until October 2, 2026.
What changes can we expect in NPS?
Physical and digital PoPs: The proposal suggests categorizing PoPs into two types. Digital PoPs will enable customers to open and manage their NPS accounts online.
More institutions eligible as PoP: Institutions such as LLPs, societies, trusts, and cooperative societies may also have the chance to become PoPs under certain conditions.
Separate application process: There could be distinct application processes for physical and digital PoPs. The application fee for physical PoPs is proposed to rise from Rs 10,000 to Rs 25,000, while digital PoPs will not have any application fee.
New eligibility criteria: Physical PoPs may need to have at least five branches or offices.
Annual Fee System: The current PoP license renewal period is five years, but there is a proposal to shift this to an annual fee structure.
Expanded exemptions: More exemptions for PoPs regarding certain eligibility criteria are being proposed.
Separate digital collection account: Digital PoPs may be required to maintain individual collection accounts for each pension scheme.
Change in ‘Pension Agent’ name: The title of ‘Pension Agent’ is proposed to be changed to ‘NPS Mitra’.
Reporting within 7 days: If there are any significant changes in the PoP, it may be necessary to report this to PFRDA within seven days.
Inspection and audit fees to be simplified: Payment rules related to inspection and audit of PoPs are also proposed to be simplified.