PFRDA issues new guidelines for NPS registration through points of presence

The Pension Fund Regulatory and Development Authority (PFRDA) has released a fresh set of guidelines detailing how subscribers can register for the National Pension System (NPS) through Points of Presence (PoPs) — institutions authorised to facilitate account opening and servicing. PoPs include a network of public and private sector banks, financial institutions, and the Department of Posts. As of March 31, 2025, there were 367 registered PoPs across India.

Under the revised norms, individuals can open an NPS account either offline by submitting a physical Subscriber Registration Form (SRF) or online through self-assisted or assisted digital platforms. In both cases, applicants must complete Know Your Customer (KYC) verification, after which the PoP verifies and forwards the details for account activation.

Central KYC

The new process allows applicants to use their Central KYC (CKYC) — a 14-digit number that stores verified identity details in a central repository. With CKYC, individuals are not required to submit fresh KYC documents. PoPs must, however, obtain consent from applicants to retrieve their information. Applicants then provide additional details such as place of birth, occupation, income range, disability status, nominee details, and investment preferences including pension fund choice, investment model (All Citizen or Corporate), and Central Recordkeeping Agency (CRA).

Applicants are also required to submit Foreign Account Tax Compliance Act (FATCA) and Common Reporting Standard (CRS) declarations. Once onboarding is completed, PoPs must upload the subscriber data to the CKYC registry within 10 days.

Banks or post offices

Individuals without CKYC can complete registration using their existing KYC details from their savings bank or post office account. With the applicant’s consent, PoPs can retrieve KYC data directly from the institution’s records. Like the CKYC route, subscribers then confirm or update details and investment preferences, after which the PoP uploads the verified information to the CKYC Registry within 10 days.

Compliance and accessibility

PFRDA has also directed PoPs to ensure inclusive services, including video-based KYC (VCIP) and other assisted processes for persons with disabilities. PoPs must maintain subscriber records for inspection, verify employer details in payroll-linked cases, and ensure compliance with Prevention of Money Laundering (PML) standards using SEBI or third-party KYC systems.

They are also required to educate subscribers on NPS benefits, investment options, and periodic KYC updates. Between April 1 and October 5, 2025, a total of 3,68,488 subscribers have registered for NPS through PoPs, reflecting the growing adoption of the pension system amid a stronger regulatory framework and simplified onboarding.

NPS overhaul

Recently, the PFRDA has proposed major reforms to the National Pension System (NPS) to address concerns around income adequacy and predictability of retirement benefits. Currently, NPS emphasizes corpus accumulation, leaving retirees uncertain about post-retirement income due to market volatility and irregular contributions.

Under the consultation paper, three new models have been suggested. Scheme 1 combines a Systematic Withdrawal Plan (SWP) with annuities, offering flexible payouts based on a “Desired Pension.” Scheme 2 guarantees a Target Pension indexed to inflation, with a 20-year accumulation phase and dual-pool corpus management for stability. Scheme 3 introduces Pension Credits, market-linked instruments providing fixed payouts over 1–5 years, with options to trade on a secondary market.

The proposals aim to balance fiscal prudence with subscriber-centric assurances, offering retirees flexibility, inflation protection, and assured income. PFRDA has invited feedback from stakeholders, signaling a potential transformative shift in India’s pension framework.