The Pension Fund Regulatory and Development Authority (PFRDA) has released an exposure draft proposing significant changes to the Point of Presence (PoP) framework that governs how National Pension System (NPS) accounts are opened and serviced. The draft, published on September 2, 2026, seeks public feedback until October 2, 2026.
Physical and Digital Distribution Routes
Under the proposal, NPS distribution would be split into two distinct channels. A physical PoP can operate through branches, digital tools, or a combination, but must maintain at least five offices in India and have the necessary technology to connect with the pension system and process subscriber requests.
Digital PoPs, by contrast, would function exclusively through electronic platforms, handling onboarding, contributions, and service requests without a physical branch network. They would need robust technology systems that align with PFRDA’s platform standards and would be required to maintain a separate digital collection account for each pension scheme. The draft also proposes waiving application fees for the digital route.
Expanded Eligibility and Capital Requirements
The proposed framework broadens the list of entities eligible for PoP registration to include organizations regulated by financial-sector regulators, certain entities overseen by other authorities, and co-operative societies. For digital-only operations, PFRDA also suggests allowing limited liability partnerships, societies, associations, and trusts, subject to conditions.
Most applicant categories would need a minimum net worth of Rs. 2 crore, with at least Rs. 50 lakh in capital, share capital, corpus, or capital fund, depending on the entity type.
Introducing ‘NPS Mitra’ and Subscriber Protections
The draft replaces the term “Pension Agent” with “NPS Mitra.” These individuals would assist with registration, service requests, and other distribution activities under agreements with a PoP. PoPs would remain responsible for the conduct of their NPS Mitras and for meeting KYC, anti-money laundering, and other regulatory obligations.
Subscriber safeguards also remain central: a PoP must indemnify subscribers for losses resulting from proven fraud or negligence by the PoP or its NPS Mitras. Strict confidentiality and data protection requirements would apply to subscriber records.
Context and Next Steps
As of September 13, 2026, NPS had 2.32 crore subscribers, according to PFRDA data. Separate government labour statistics show about 61.6 crore employed people in India aged 15 and above between January and December 2025, though these figures cover different populations and do not directly measure NPS demand.
The framework remains a proposal until the consultation period closes and PFRDA issues final regulations.
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