PFRDA proposes changes to Point of Presence regulations: What NPS subscribers need to know

The Pension Fund Regulatory and Development Authority (PFRDA) on Thursday released an exposure draft proposing changes to the rules governing Points of Presence (PoPs), the entities through which investors can open and service their National Pension System (NPS) accounts.

The proposed amendments in the Pension Fund Regulatory and Development Authority (Point of Presence) Regulations, 2018, are aimed at expanding the PoP network, particularly in underserved and last-mile areas, while also making digital onboarding and servicing more accessible.

PFRDA has invited stakeholder comments on the proposals until 2 October 2026.

Here are the key changes subscribers should know.

More entities could offer NPS services

PFRDA proposes to widen the eligibility criteria for becoming a PoP. Apart from companies, banks and NBFCs, entities such as co-operative societies, LLPs, societies, associations and trusts could become PoPs.

For subscribers, this could eventually translate into more places and entities through which they can access NPS, particularly outside major cities.

Digital-only NPS providers get a separate route

The regulator has proposed two distinct distribution modes: physical and digital.

Digital mode would specifically mean an exclusive digital process for onboarding, contributions, and service requests through platforms authorised by PFRDA. This could encourage more digital-first players to enter the NPS distribution ecosystem.

PoPs onboarding subscribers digitally will be required to maintain a separate digital collection account for each pension scheme for receiving digital contributions.

Physical PoPs will need at least five branches or offices

Under the proposed framework, a PoP offering NPS through the physical mode would need to have at least five branches or offices in India, along with the required technology infrastructure.

Pension Agent will become NPS Mitra

PFRDA proposes replacing the term “Pension Agent” with “NPS Mitra”.

These NPS Mitras can help with activities such as registration, service requests, and collection of KYC documents. However, the PoP will continue to remain responsible for their actions, including compliance with KYC and anti-money-laundering requirements.

This is important for subscribers because using an NPS Mitra does not shift the PoP's responsibility for the services provided.

PoPs remain responsible for fraud or negligence

The proposed regulations retain an important subscriber-protection provision. PoPs would be liable for acts or omissions by their employees, NPS Mitras, or other persons whose services they use.

Where fraud or negligence by the PoP or NPS Mitra is established and causes a loss to the subscriber, the PoP would have to indemnify the subscriber.

For investors, this is important because appointing an NPS Mitra does not allow the PoP to shift responsibility for the services being provided.

Your NPS information must remain confidential

The proposed rules also require PoPs and NPS Mitras to maintain absolute confidentiality of subscriber records, data and information received under NPS and other pension schemes.

Such information cannot be shared or produced without PFRDA’s prior permission, except where disclosure is required under due process of law.

What do these changes mean for NPS subscribers?

The bigger significance is in access and servicing. By allowing more types of entities to become PoPs and creating a dedicated digital route, PFRDA is trying to broaden the NPS distribution network beyond traditional banks and financial institutions.

If implemented, the changes could make it easier for investors, especially those in smaller towns and underserved areas, to open and service NPS accounts. At the same time, the proposed framework keeps PoPs responsible for the conduct of their NPS Mitras and for protecting subscribers' interests.

Disclaimer: This is for informational purposes only. Please visit the official website for the latest updates.