The PFRDA has unveiled ten significant proposals aimed at reforming its Points of Presence rules to enhance the pension service landscape. These updates intend to streamline the onboarding process for subscribers while introducing fresh eligibility standards to include a wider range of entities as Points of Presence. Additionally, an annual fee structure will be implemented, and pension agents will receive a new designation.
The Pension Fund Regulatory and Development Authority (PFRDA) has proposed changes to the rules governing Points of Presence (PoPs). The proposed amendments are aimed at expanding the PoP network, particularly in areas where access to pension services is limited. The changes also seek to make onboarding and servicing easier for subscribers and improve the process for resolving subscriber-related issues.
The final impact will depend on the regulations notified by the PFRDA after considering the feedback on the proposed amendments. The pension body has given time till October 2, 2026, to submit comments, views and suggestions on the draft.
Here are the 10 changes that the PFRDA has suggested about PoPs.
1. Two modes of PoP distribution proposed
Under the proposed framework, PoPs would be divided into two categories based on how they provide services — physical mode and digital mode.
The digital mode would be meant exclusively for digital onboarding and servicing of subscribers.
2. More entities may be eligible to become PoPs
The PFRDA has proposed widening the eligibility criteria for entities regulated by financial sector regulators.
Currently, applicants regulated by financial sector regulators are restricted to certain legal forms, including companies, banks and NBFCs. The proposed changes would remove this restriction and allow other eligible legal forms, such as LLPs, societies, trusts and co-operative societies, to seek registration as PoPs, subject to the prescribed conditions.
3. Separate application process for physical and digital PoPs
The proposed regulations would have separate provisions for applications under the physical and digital modes.
The application fee for physical-mode PoPs is proposed to increase from Rs 10,000 to Rs 25,000. However, no application fee would be charged for digital-mode PoPs.
The PFRDA has also proposed timelines for processing applications.
4. Restructuring of eligibility criteria
It is proposed that the eligibility requirements be organised according to the applicant's characteristics and the manner of distribution. For physical-mode PoPs, there must be a minimum of five branches or offices in addition to specific technical, financial, and governance requirements.
5. Annual fee instead of five-year renewal
One of the key changes relates to the fee structure for PoPs. The existing five-year renewal cycle is proposed to be replaced with an annual fee mechanism. The proposed annual fee would be 1% of the charges earned by the PoP, subject to a minimum fee of Rs 3,000 a year.
6. Relaxation in exemption provisions
The proposed amendments would also widen the scope of exemptions available under the regulations.
The exemption provisions would cover eligibility conditions relating to the number of branches and net worth, in addition to the existing framework.
7. Separate digital collection account
PoPs providing onboarding through the digital mode would be required to maintain a separate digital collection account for each pension scheme, according to the proposal.
8. ‘Pension Agent’ to be renamed ‘NPS Mitra’
PFRDA has also proposed changing the terminology used for pension agents.
The expression “Pension Agent” would be replaced with “NPS Mitra”, with corresponding changes to be made across the regulations.
PoPs would also be required to formulate an internal policy approved by the organisation for engaging NPS Mitras. This would replace the existing requirement for a Board-approved policy.
9. PoPs to report material changes within seven days
The proposed rules would require PoPs to inform the PFRDA within seven days of any material change in information or particulars previously submitted to the regulator if the change could adversely affect their certificate of registration.
10. Simplified inspection and audit fee provision
The PFRDA has also proposed simplifying the provisions relating to inspection and audit fees.
Instead of detailing the payment mechanism in the regulations, the PFRDA would be able to prescribe the manner and procedure for payment through guidelines, circulars, directions or instructions.
