Pension Fund Regulatory and Development Authority (PFRDA) has released an Exposure Draft containing the proposed amendments to the rules governing Points of Presence (PoP) Regulations, 2018. The draft aims to expand and modernise the pension distribution system, particularly in remote, underserved areas. The changes push forward the widening of access to pension products and efficient services for subscribers.
What are PoPs?
A Point of Presence (PoP) facilitates interaction between subscribers and the National Pension System (NPS). It acts as an intermediary which ensures smooth NPS services to subscribers by streamlining the process of subscriber registration, KYC verification, and receiving and transmitting funds.
Amendments
Modes of distribution: Under the proposed amendments, the PoPs will have two modes of operation: physical and digital. Under the digital mode, onboarding and servicing would be provided to subscribers digitally, whereas under the physical mode, the subscriber has to be physically present at the centre to avail of the services.
Widening of eligibility: Under the current framework, the entities which can be registered as PoPs are limited to certain applicants regulated by Financial Sector Regulators. The move aims to widen the eligibility criteria for FSR-regulated eligible legal forms to include LLPs, societies, trusts, and co-operative societies.
Moreover, entities recognised by other regulatory authorities, co-operative societies, and specified legal forms such as LLPs, societies/associations, and trusts for exclusive digital mode can also seek registration as PoPs, subject to eligibility requirements.
Different application fee: The application fee for a physical PoP ranges from Rs 10,000 to Rs 25,000, whereas the fee for Digital PoPs stands completely waived.
Eligibility requirements: A physical PoP is required to have at least five branches throughout the country, along with prescribed technological, financial, and governance requirements.
Renewed fee mechanism: An annual fee mechanism is proposed to replace the existing five-year renewal cycle. The annual fee would equal 1 percent of the charges earned by the PoP, subject to a minimum of ₹3,000 per annum.
Digital collection account: Under the proposed framework, PoPs with a digital mode of operation would be required to have a separate digital collection account for different pension schemes.
Pension Agent renaming: The term ‘NPS Mitra’ is proposed to replace ‘Pension Agent’. Also, the PoPs will be required to formulate an internally approved policy for the engagement of ‘NPS Mitras’ instead of the existing Board-approved policy.
Reporting changes: If the PoP has undergone material changes in information and particulars previously submitted that may adversely affect its Certificate of Registration, the Authority must be informed within seven days.
Audit fees: The provision for inspection or audit fees is proposed to be simplified, and the Authority would prescribe the manner and procedure for payment through guidelines, circulars, directions, or instructions.
The PFRDA website mentions October 2, 2026 as the last date to provide feedback regarding the proposed amendments.
