Summary of this article
PFRDA mandates NPS applicants' specific consent and declaration for account opening.
CRAs and PoPs are directed need to update their systems.
Other account details validation formalities include e-sign or OTP.
The Pension Fund Regulatory and Development Authority (PFRDA) has partially modified the National Pension System (NPS) account opening rules. In a circular dated January 2, 2026, PFRDA made it mandatory for the central record-keeping agencies (CRAs) and Points of Presence (PoPs) to get consent and declaration from the applicants.
A previous circular in this regard was issued on June 15, 2020, where PFRDA permitted online NPS account opening by validating the NPS application through 'e-signature’ or One Time Password (OTP).
What Is The Change?
The circular says: “Applicants shall authenticate the submission of online NPS registration form through e-sign or through an OTP received on their mobile number. The consent and mandatory declarations applicable for opening of an NPS account shall be specifically obtained from the applicant at the end of such online journey through the said e-Sign or mobile OTP authentication.”
What Did The Previous Circular Say?
To offer online account opening, PFRDA had permitted validation of NPS application through e-signature or OTP.
According to the circular issued in 2020, “the customers of Bank-POPs who open NPS Account through Internet banking of the respective banks can authenticate using OTP through registered mobile number or by 'e Signature'. In other digital modes of NPS, onboarding offered by all POPs/eNPS, the subscribers can authenticate using 'e Signature' or through OTP received on their mobile number as well as on email.”
So, the recent change in online NPS account opening is about obtaining consent and mandatory declarations from applicants. Earlier, only OTP or e-signature would be sufficient, but now there is the added requirement of obtaining applicants’ consent and declarations while opening the account.
PFRDA has advised CRAs and PoPs to make changes in their systems, and other stakeholders to be informed. One needs to make sure to give consent and other declarations, or their NPS account may get stuck in the opening process.
