PFRDA Relaxes NPS Rules For Government Entities, Allows Continued Use Of PoP Services

The Pension Fund Regulatory and Development Authority (PFRDA) has permitted government-owned companies and other organisations classified as Government Entities under the National Pension System (NPS) to continue using Point of Presence (PoP) service providers, easing a requirement introduced earlier this year that envisaged direct integration with Central Recordkeeping Agency (CRA) systems.

In a circular issued on June 16, 2026, the regulator said that government entities opting to avail PoP services will have to pay an annual charge of Rs 500 per subscriber. The revised arrangement has come into effect immediately.

Circular Follows Representations From Organisations

The latest decision follows feedback received from several government-controlled organisations, including Central Public Sector Enterprises (CPSEs), which highlighted operational challenges in independently carrying out NPS-related activities.

PFRDA had earlier introduced a new structure in March 2026, dividing corporate subscribers into Government Entities and Legal Entities. As part of the framework, Government Entities were expected to have the technical capacity to directly interact with the CRA platforms and manage subscriber-related processes without the use of PoPs.

However, organisations have informed the regulator that moving entirely to the CRA system posed practical difficulties in day-to-day operations.

After reviewing these representations, PFRDA decided to allow such entities to continue accessing PoP services through a fixed-fee structure.

What The Earlier Framework Required

To qualify as a Government Entity under the March framework, organisations were required to meet specific conditions.

These included mandatory NPS coverage for employees from a notified date and the transfer of any Assets Under Management (AUM) held under superannuation funds to the NPS architecture within one year.

The framework also required entities to have the necessary operational and technological infrastructure to handle subscriber onboarding, contribution processing and other services directly through CRA systems.

It was this requirement that prompted requests for greater flexibility from several organisations.

Services Included Under The Fee Structure

According to the circular, the annual fee of Rs 500 per subscriber covers a range of services offered by PoPs.

These include opening NPS accounts, uploading subscriber data, processing contributions, facilitating pension fund and scheme changes, updating nominations and handling partial withdrawal requests.

Other routine subscriber servicing functions performed by PoPs are also covered.

PFRDA clarified that the fee applies only to services provided by PoPs and does not include charges payable to other intermediaries within the NPS ecosystem.