National Pension System new rules: 9 major PFRDA proposals NPS subscribers need to know

The Pension Fund Regulatory and Development Authority (PFRDA) has proposed amendments to the PFRDA (Point of Presence) Regulations, 2018. The proposals are contained in an Exposure Draft dated September 2, 2026.

PFRDA said "the proposed amendments are aimed at strengthening and broadening the Point of Presence (PoP) distribution network, particularly in last-mile and underserved areas, and facilitating wider access to pension products, effective subscriber servicing and prompt resolution of subscriber issues."

The proposed changes are not final regulations. PFRDA has invited comments, views and suggestions from stakeholders until October 2, 2026.

1. Two modes of PoP distribution proposed

PFRDA has proposed two distinct modes of distribution for PoPs, physical mode and digital mode.

Under the proposed framework, “digital mode” means an exclusive mode of onboarding in which the particulars of a prospect are captured electronically, contributions are transferred and service requests are processed through digital platforms authorised by PFRDA.

Any mode other than digital mode, including a combination of physical and digital, would be considered physical mode.

2. Wider eligibility for PoPs

The proposed framework would cover entities regulated by financial sector regulators, entities regulated by non-financial sector regulatory authorities and co-operative societies.

For digital-mode PoPs, the draft also proposes eligibility for Limited Liability Partnerships, societies or associations and trusts, subject to the prescribed conditions.

3. Separate digital collection account

A PoP authorised to undertake onboarding through digital mode would be required to maintain a separate digital collection account for each pension scheme for receipt of digital contributions.

For physical mode, the existing requirement relating to a collection account for each pension scheme would continue under the proposed framework.

4. “Pension Agent” to be called “NPS Mitra”

PFRDA has proposed replacing the expression “Pension Agent” with “NPS Mitra”.

The proposed definition covers persons engaged under an agreement by a PoP for facilitating distribution of NPS or any other scheme regulated or administered by PFRDA.

The proposed definition includes business correspondents or corporate business correspondents engaged by banks, insurance agents, mutual fund distributors registered with AMFI and other persons permitted by PFRDA.

5. PoPs to remain responsible for NPS Mitras

The draft provides that a PoP would remain liable for acts or omissions by its NPS Mitras in the discharge of their functions.

This includes responsibilities relating to KYC, AML and CFT requirements, monitoring and supervising their activities, and imparting training on pension schemes.

The draft also provides that PoPs may engage NPS Mitras for the limited function of distribution of pension schemes specified under the regulations.

6. Subscriber indemnification for established fraud or negligence

The proposed amendments retain the requirement for PoPs to make provision for indemnifying subscribers for any established loss arising from fraud or negligence on the part of the PoP or its NPS Mitras.

The PoP would also remain liable for acts or omissions by its employees, NPS Mitras or other persons whose services it has obtained, as specified in the proposed regulations.

7. Updated information and fair disclosure

The information would have to be provided sufficiently before a subscriber opens an account, allowing reasonable time to understand the information.

The proposed Code of Conduct also states that information should be disseminated on a continuing basis through the website and within a reasonable period after a material change or at reasonable periodic intervals, as applicable.

8. Protection against misleading or unfair conduct

The proposed Code of Conduct states that PoPs and NPS Mitras must maintain high standards of integrity and fairness in their dealings and exercise due diligence.

They would not be permitted to make exaggerated statements about their qualifications, capabilities or achievements.

The draft also prohibits unfair conduct, including misleading or abusive conduct that significantly impairs, or is likely to significantly impair, a subscriber's ability to make an informed transactional decision.

PoPs and NPS Mitras would also not be permitted to collect any fee other than that determined by PFRDA from time to time.

9. Confidentiality of subscriber information

The proposed framework retains confidentiality requirements relating to records, data and information received under pension schemes, including NPS.

PoPs and NPS Mitras would be required to maintain confidentiality and would not be permitted to produce or share such data or information without prior permission of PFRDA, except as required by due process of law.

These are proposed NPS changes, not final rules The above provisions are part of PFRDA's Exposure Draft dated September 2, 2026. They are proposed amendments to the PFRDA (Point of Presence) Regulations, 2018 and may be changed following stakeholder consultation.

PFRDA has invited comments, views and suggestions on the Exposure Draft until October 2, 2026.