Pension body proposes 10 changes to NPS PoP rules

The Pension Fund Regulatory and Development Authority (PFRDA) has proposed 10 amendments to the Points of Presence (PoP) rules governing pension services. These proposed changes aim to broaden the PoP network, especially in regions with limited pension service access, and improve subscriber onboarding, servicing, and issue resolution. The final impact will rely on the regulations the PFRDA issues after reviewing feedback on the proposed changes, with comments due by October 2, 2026.

1. PoPs will be classified into physical and digital modes of distribution.

2. Eligibility criteria for PoP applicants will be expanded to include more legal forms, such as LLPs, societies, trusts, and co-operative societies.

3. Separate application processes will be established for physical and digital PoPs.

4. Eligibility requirements will be organized based on applicant characteristics and distribution methods.

5. The existing five-year renewal cycle for PoP fees will be replaced with an annual fee system.

6. Exemption provisions will be broadened to cover factors like the number of branches and net worth.

7. PoPs providing digital onboarding must maintain a separate digital collection account for each pension scheme.

8. The term "Pension Agent" will be replaced with "NPS Mitra."

9. PoPs must notify the PFRDA of material changes within seven days.

10. Inspection and audit fees will be simplified, with payment details provided through guidelines, circulars, or directives.