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There is significant news for those associated with the National Pension System (NPS). The pension regulator, PFRDA, has proposed major changes to the regulations governing 'Points of Presence' (PoPs) under the NPS. The objective is to expand the reach of the NPS, simplify digital account opening and service access, and extend pension services to smaller towns and remote areas.

On September 2, 2026, the PFRDA released an exposure draft proposing amendments to the PFRDA (Point of Presence) Regulations, 2018. Stakeholders can submit their suggestions and objections regarding this draft until October 2, 2026.

1. Two distinct PoP models
The most significant change concerns the operational model of PoPs. The PFRDA has proposed categorizing PoPs into 'Physical Mode' and 'Digital Mode.' Under the Digital Mode, NPS onboarding and servicing would be conducted entirely through digital channels. Conversely, entities providing services through physical means would fall under the Physical Mode.

2. More entities eligible to become PoPs
The PFRDA has also proposed broadening the eligibility criteria for becoming a PoP. Currently, there are legal framework-related limitations for entities regulated by certain financial regulators.

Under the proposal, entities such as LLPs, societies, trusts, and cooperative societies could become eligible to operate as PoPs, provided they meet the requisite conditions. This move could help extend the reach of the NPS to areas where access to pension services is currently limited.

3. Separate applications for Physical and Digital PoPs
It is proposed to increase the application fee for the Physical Mode from ₹10,000 to ₹25,000. Meanwhile, the proposal suggests waiving the application fee for the Digital Mode.

4. Annual fee instead of a 5-year cycle
There is a proposal to modify the existing five-year renewal system for PoPs. This could be replaced by a system involving an annual fee. The proposed annual fee will be 1% of the charges earned by the PoP in the previous financial year, subject to a minimum annual fee of ₹3,000.

5. Relaxation of eligibility norms
The PFRDA has proposed expanding the scope of relaxations regarding certain eligibility conditions. Specifically, this includes criteria related to the number of branches and net worth. This could make it easier for certain eligible entities to operate as PoPs.

6. ‘Pension Agent’ to be renamed ‘NPS Mitra’
An interesting change proposed concerns nomenclature; it is proposed that the term ‘Pension Agent’ be changed to ‘NPS Mitra’. An ‘NPS Mitra’ can assist in distributing NPS and other schemes regulated by the PFRDA, under an agreement with a PoP.

7. Changes to inspection and audit fee mechanisms
The PFRDA has also proposed simplifying the provisions regarding inspection and audit fees. Under this proposal, the mode and process of fee payment would be determined through guidelines, circulars, directions, or advisories issued by the regulator.

What will change for NPS subscribers?
These proposals focus less on altering NPS investment rules and more on transforming access to NPS and the service delivery system. If implemented, subscribers could gain access to more digital options for opening NPS accounts and availing services in the future. Furthermore, the inclusion of LLPs, societies, trusts, and other eligible entities in the PoP network could expand the reach of NPS services to smaller towns and regions where options are currently limited.

Disclaimer: This content has been sourced and edited from Dainik Jagran. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.