Getting access to pension services could become easier, especially for people living in remote and underserved areas.
The Pension Fund Regulatory and Development Authority (PFRDA) has released an Exposure Draft proposing several changes to the rules for Points of Presence (PoPs) under the PFRDA (Point of Presence) Regulations, 2018.
The proposed changes aim to make pension services more accessible, bring more organisations into the system and expand digital services for National Pension System (NPS) subscribers.
What Is a Point of Presence?
A Point of Presence, or PoP, acts as a link between NPS subscribers and the pension system.
PoPs help people with important services such as NPS registration, KYC verification and receiving and transferring pension contributions.
Under the proposed changes, the way these services are provided could become more flexible.
PoPs Could Soon Work in Two Ways
The draft proposes two modes of operation:
Physical mode: Subscribers will visit a PoP centre in person to use the services.
Digital mode: Subscribers will be able to complete onboarding and receive services digitally without visiting a physical centre.
This could make NPS services more convenient for people who prefer online processes or live far away from service centres.
More Organisations May Be Allowed to Become PoPs
PFRDA also wants to expand the eligibility criteria.
At present, only certain entities regulated by financial sector regulators can become PoPs.
Under the proposed rules, more legal structures could become eligible, including LLPs, societies, trusts and co-operative societies, subject to the required conditions.
Certain entities recognised by other regulators could also apply. Some specified organisations may be allowed to operate exclusively through the digital mode.
Digital PoPs May Get a Big Fee Advantage
The proposed application fees would also be different for physical and digital PoPs.
For a physical PoP, the application fee could range from ₹10,000 to ₹25,000.
For a digital PoP, the application fee would be completely waived.
This could encourage more organisations to offer NPS services through digital channels.
New Rules for Physical PoPs
Physical PoPs would have to meet certain requirements.
A physical PoP would need to have at least five branches across the country.
It would also have to meet prescribed requirements related to technology, finances and governance.
The draft also proposes changing the existing renewal system.
Instead of the current five-year renewal cycle, PoPs may have to pay an annual fee equal to 1% of the charges they earn, with a minimum annual fee of ₹3,000.
Separate Account Proposed for Digital Collections
Digital PoPs may also have to maintain a separate digital collection account for each pension scheme.
The aim is to keep digital collections properly organised and make the flow of pension-related funds easier to monitor.
‘Pension Agent’ May Become ‘NPS Mitra’
Another proposed change involves the name used for pension agents.
The term ‘Pension Agent’ may be replaced with ‘NPS Mitra’.
PoPs would also be required to create an internally approved policy for appointing NPS Mitras instead of following the existing Board-approved policy.
PoPs May Have to Report Changes Within 7 Days
The draft also proposes stricter reporting requirements.
If a PoP makes a significant change to information or details previously submitted to PFRDA, and that change could affect its Certificate of Registration, the Authority would have to be informed within seven days.
The rules related to inspection and audit fees are also proposed to be simplified. PFRDA would decide the payment process through future guidelines, circulars, directions or instructions.
Feedback Deadline Is October 2
These are currently proposed changes, not final rules.
According to the PFRDA website, stakeholders can submit their feedback on the Exposure Draft until October 2, 2026.
If implemented, the proposed changes could make the NPS distribution network broader, more digital and more accessible, particularly for subscribers who currently have limited access to pension services.
