Regulator allows banks to sponsor NPS pension funds

Core Viewpoint - The PFRDA has approved a framework allowing banks to independently establish pension funds for managing National Pension System (NPS) assets, aimed at enhancing competition and protecting subscriber interests [2][4]. Group 1: Framework for Banks - Banks will be able to sponsor pension funds, subject to a clearly defined eligibility criteria based on net worth, market capitalization, and prudential soundness in line with RBI norms [2][4]. - The initiative is designed to ensure that only well-capitalized and systemically robust banks can sponsor pension funds, with detailed guidelines to be issued for both new and existing funds [2][4]. Group 2: NPS Trust Board Appointments - The PFRDA has appointed three new trustees to the NPS Trust Board, including Dinesh Kumar Khara as chairperson, along with Swati Anil Kulkarni and Dr. Arvind Gupta [3][4]. Group 3: Investment Management Fee Structure - The Investment Management Fee (IMF) structure for pension funds will be revised starting April 1, 2026, introducing differentiated rates for government and non-government sector subscribers [3][4]. - For government sector employees under specific options, the IMF will remain unchanged, while for non-government sector subscribers, it will range from 0.12% for assets under management (AUM) up to ₹25,000 crore, tapering to 0.04% for AUM above ₹1.5 trillion [3][4].