Group 1 - The Pension Fund Regulatory and Development Authority (PFRDA) has approved a framework allowing banks to independently sponsor pension funds for managing National Pension System (NPS) assets, aimed at strengthening the overall pension ecosystem [1][6] - Banks will need to meet clearly defined eligibility criteria based on net worth, market capitalization, and prudential soundness, ensuring that only well-capitalized and systemically robust banks can enter the pension fund management space [1][6] - Currently, banks serve as points of presence (PoPs) in the NPS ecosystem, handling subscriber registrations and contribution collections, with 10 pension funds registered with the PFRDA [2][6] Group 2 - 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 [5][6] - The Investment Management Fee (IMF) structure for pension funds has been revised, effective April 1, 2026, with differentiated rates for government and non-government sector subscribers; for non-government subscribers, the IMF will range from 0.12% for assets under management (AUM) up to ₹25,000 crore, tapering to 0.04% for AUM exceeding ₹1.5 trillion [5][6]
Regulator allows banks to sponsor NPS pension funds; PFRDA clears framework in principle
The Economic Times·2026-01-02 10:53