The pension system in India could soon become easier to access, especially for people living in areas where financial services are limited.
The Pension Fund Regulatory and Development Authority (PFRDA) has released an Exposure Draft proposing changes to the rules for Points of Presence (PoPs) under the PFRDA (Point of Presence) Regulations, 2018.
The proposed changes aim to make NPS services more accessible, modern and convenient for subscribers across the country.
What Are Points of Presence (PoPs)?
A Point of Presence (PoP) acts as a link between subscribers and the National Pension System (NPS).
PoPs help people with important NPS-related services such as registration, KYC verification and depositing or transferring funds.
Under the proposed rules, the system could soon become more flexible, with both physical and fully digital options.
Two Ways to Access PoP Services
PFRDA has proposed two modes of operation for PoPs:
Physical mode: Subscribers will visit a PoP centre in person to access the services.
Digital mode: Subscribers will be able to complete onboarding and access services digitally without having to visit a physical centre.
This could make NPS services easier to access, particularly for people living far from traditional financial service centres.
More Organisations May Become PoPs
The proposed rules could also significantly expand who can become a PoP.
At present, only certain entities regulated by financial sector regulators are eligible.
Under the new proposal, eligibility could be expanded to include legal forms such as LLPs, societies, trusts and co-operative societies, subject to the required conditions.
Certain entities recognised by other regulators could also become PoPs.
Some eligible LLPs, societies, associations and trusts may be allowed to operate exclusively through the digital mode.
Digital PoPs Could Have a Major Fee Advantage
There is also a difference in the proposed application fees.
For a physical PoP, the application fee would range from ₹10,000 to ₹25,000.
For a Digital PoP, the application fee would be completely waived.
However, physical PoPs would have to meet additional requirements, including having at least five branches across the country along with the required technology, financial strength and governance systems.
Annual Fee Instead of Five-Year Renewal
Another important proposed change concerns the fee structure.
Instead of the existing five-year renewal system, PFRDA has proposed an annual fee mechanism.
The annual fee would be 1% of the charges earned by the PoP, with a minimum payment of ₹3,000 per year.
This would change how PoPs manage their regulatory fees and renewals.
New Rules for Digital Collection Accounts
PoPs operating through the digital mode would also need to maintain a separate digital collection account for different pension schemes.
The move is aimed at creating clearer fund management and improving the handling of digital pension transactions.
‘Pension Agent’ May Become ‘NPS Mitra’
PFRDA has also proposed changing the name ‘Pension Agent’ to ‘NPS Mitra’.
PoPs would need to create an internally approved policy for appointing NPS Mitras.
This would replace the existing requirement for a Board-approved policy for engaging pension agents.
PoPs Will Have to Report Major Changes Quickly
The proposed rules also introduce a tighter reporting requirement.
If a PoP makes a significant change to information previously submitted to the Authority, and that change could affect its Certificate of Registration, it would have to inform PFRDA within seven days.
The proposal also aims to simplify the process related to inspection and audit fees. PFRDA would prescribe the payment process through guidelines, circulars, directions or instructions.
Feedback Deadline Is October 2
The proposed changes are currently part of an Exposure Draft, meaning they are not yet final rules.
PFRDA has invited feedback on the proposed amendments.
According to the PFRDA website, October 2, 2026 is the last date for submitting feedback.
If these proposals are finalised, they could make the NPS distribution network more flexible by combining physical services with digital access and allowing more types of organisations to participate in providing pension services.
