The PFRDA has proposed 10 changes to the Point of Presence (PoP) regulations to make NPS services simpler and more digital. These changes aim to make account opening and service access more convenient, though the proposals are not yet final.

If you invest in the National Pension System (NPS) or are considering opening a new pension account, this information is relevant to you. The Pension Fund Regulatory and Development Authority (PFRDA) is preparing to introduce 10 major changes to the regulations governing 'Points of Presence' (PoP)—the entities that provide NPS-related services. The primary objective of these changes is to make NPS services easier to access and more digital-friendly than before. However, these changes are currently at the proposal stage; the PFRDA has invited public suggestions until October 2, 2026.

What might change in the NPS?

Physical and Digital PoPs: There is a proposal to categorize PoPs into two types. Through 'Digital PoPs,' customers will be able to open and manage their NPS accounts online.

More Entities Eligible to Become PoPs: Entities such as LLPs, societies, trusts, and cooperative societies may also get the opportunity to become PoPs, subject to specific conditions.

Separate Application Processes: There may be distinct application processes for physical and digital PoPs. While the application fee for physical PoPs is proposed to increase from ₹10,000 to ₹25,000, there would be no fee for digital PoPs.

New Eligibility Criteria: A requirement for physical PoPs to have at least five branches or offices could be introduced.

Annual Fee Structure: Currently, the PoP license renewal cycle is five years; however, there is a proposal to switch to an annual fee system.

Expanded Scope of Exemptions: Proposals have been made to offer greater exemptions to PoPs regarding certain eligibility criteria. Separate digital collection account: Digital PoPs may be required to maintain a separate collection account for each pension scheme.

Renaming of 'Pension Agent': There is a proposal to rename the 'Pension Agent' as 'NPS Mitra'.

Reporting within 7 days: PoPs may be required to inform the PFRDA within seven days regarding any significant changes.

Simplified inspection and audit fees: There is also a proposal to simplify the payment norms related to PoP inspections and audits.