The Pension Fund Regulatory and Development Authority (PFRDA) has proposed changes to the Point of Presence framework for the National Pension System (NPS), with a wider set of eligible entities and a separate digital distribution route. The exposure draft, issued on September 2, 2026, is open for public comments until October 2.
The proposal focuses on how NPS accounts are distributed and serviced rather than changing the pension product. PFRDA says the amendments aim to broaden the PoP network, including in last-mile and underserved areas, while improving access and subscriber servicing. The plan is designed to increase the channels available for opening and managing NPS accounts.
Under the draft, PFRDA would divide NPS distribution into physical and digital modes. A physical PoP could use branches, digital tools, or a mix of both. However, it would need at least five branches or offices in India and the technology required to connect with the pension system and process subscriber instructions.
A digital PoP would operate only through electronic channels. PFRDA defines ‘digital mode’ as an exclusive model for onboarding, contributions and service requests through authorized platforms.
Digital PoPs would not need the five-branch network, but they would need suitable technology systems and must follow PFRDA's platform requirements. They would also need a separate digital collection account for each pension scheme. PFRDA proposes no application fee for the digital route.
The draft would also widen the types of entities that can seek PoP registration. The proposed list includes entities regulated by financial-sector regulators, certain entities regulated by other authorities and co-operative societies. For exclusive digital distribution, PFRDA also proposes routes for limited liability partnerships, societies, associations and trusts, subject to the stated conditions.
For several categories, the draft sets a minimum net worth of Rs. 2 crore, including minimum capital, share capital, corpus or capital fund of Rs. 50 lakh, depending on the entity type. PFRDA data showed 2.32 crore NPS subscribers as of September 13, 2026.
Separately, government labour data estimated that India had 61.6 crore employed people aged 15 years and above during January-December 2025. The figures cover different populations and do not provide a direct measure of NPS demand.
PFRDA also proposes replacing the term ‘Pension Agent’ with ‘NPS Mitra.’ These agents could help with NPS registration, service requests and other distribution work under an agreement with a PoP. The draft keeps the PoP responsible for the conduct of NPS Mitras and for meeting KYC, anti-money-laundering and other regulatory duties.
The proposed rules also retain subscriber-protection measures. A PoP would have to indemnify a subscriber if established fraud or negligence by the PoP or its NPS Mitra causes a loss. PoPs and NPS Mitras would also have to protect subscriber records and follow confidentiality requirements. The framework remains a proposal until PFRDA completes the consultation process and issues final regulations.
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