The Pension Fund Regulatory and Development Authority’s board has given the green light for Scheduled Commercial Banks to establish Pension Funds independently to oversee NPS, aiming to bolster the pension system. This move is expected to promote competition and protect the interests of subscribers.
The new framework aims to overcome regulatory barriers that previously restricted bank involvement. The Ministry of Finance mentioned that the eligibility criteria will be based on net worth, market capitalization, and compliance with RBI standards to ensure that only financially stable and robust banks can sponsor Pension Funds.
To enhance governance, PFRDA has added three new Trustees to the NPS Trust Board, including Dinesh Kumar Khara, Swati Anil Kulkarni, and Dr. Arvind Gupta. Khara has been appointed as the Chairperson of the NPS Trust Board.
In a bid to adapt to changing needs and broaden coverage, PFRDA has revised the Investment Management Fee structure for Pension Funds, effective from April 1, 2026. The updated fee system introduces different rates for government and non-government sector subscribers, including those under the Multiple Scheme Framework.
These policy adjustments are anticipated to provide better access to a competitive and well-managed NPS environment, ultimately improving retirement prospects and ensuring greater financial security in old age.
