This will enhance competition and safeguard subscriber’s interests. The proposed framework seeks to address existing regulatory constraints that had limited bank participation till now. By introducing a clearly defined eligibility criteria based on net worth, market capitalisation and prudential soundness in line with RBI norms, it will ensure that only well-capitalised and systemically robust banks are permitted to sponsor Pension Funds.
New Delhi:The Pension Fund Regulatory and Development Authority’s (PFRDA) board has approved, in principle, a framework to permit Scheduled Commercial Banks (SCBs) to independently set up Pension Funds to manage NPS, with the objective of strengthening the pension ecosystem.
This will enhance competition and safeguard subscriber’s interests. The proposed framework seeks to address existing regulatory constraints that had limited bank participation till now. By introducing a clearly defined eligibility criteria based on net worth, market capitalisation and prudential soundness in line with RBI norms, it will ensure that only well-capitalised and systemically robust banks are permitted to sponsor Pension Funds.
The detailed criteria will be notified separately and will apply to both new and existing Pension Funds.
PFRDA has also appointed three new Trustees on the Board of NPS Trust.
The new Trustees to the Board of PFRDA are-Dinesh Kumar Khara, Former Chairman, State Bank of India,Swati Anil Kulkarni, former executive vice president, UTI AMC – Trustee,Arvind Gupta, Co-Founder and Head, Digital India Foundation and Member of the National Venture Capital Investment Committee under the Fund of Funds Scheme managed by SIDBI,
Khara has also been designated as the Chairperson of the NPS Trust Board.
In order to align with evolving realities, aspirations of the public, international benchmarks and the objective of expanding coverage across corporate, retail and gig-economy segments, PFRDA has revised the Investment Management Fee (IMF) structure for Pension Funds to safeguard subscriber interests with effect from 1 April 2026.
The revised slab-based IMF introduces differentiated rates for Government and Non-Government sector subscribers which shall also apply to schemes under the Multiple Scheme Framework (MSF), with MSF corpus being counted separately.
The IMF for Government Sector employees under Composite Scheme or those opting for Auto Choices and Active Choice G 100s remains the same.
Meanwhile Atal Pension Yojna(APY) has crosseed 8.34 crore enrolments and Women account for 48% of the scheme.
Atal Pension Yojana (APY), that was launched on June.2015, with the objective of creating a universal social security system for all Indians, especially the poor, the under-privileged and the workers in the unorganised sector. It is open to all citizens of India between 18-40 years of age having a savings account in a bank or post-office. As per the Scheme, subscriber will receive pension benefit on attaining the age of 60 years. Hence, the pension benefit under APY is expected to start from 2035 onwards. However, the gross enrolment under Atal Pension Yojana as on Oct ,,2025 is 8,34,13,738.
As on 31.10.2025, the female gross enrolments under APY is 4,04,41,135 which is 48% of the total enrolment. APY is being implemented through the Department of Posts (DoP) and banking institutions including Public Sector Banks, Private Sector Banks, Regional Rural Banks, Small Finance Banks, Payments Banks, Cooperative Banks. These institutions are registered as Points of Presence – APY (PoP-APY) with PFRDA and are responsible for distribution of APY and servicing of APY subscribers.