In a statement, the regulator said the PFRDA board has cleared a framework to permit banks to set up and sponsor pension funds for managing NPS assets, with the objective of strengthening the overall Banks seeking to sponsor pension funds will be required to meet “clearly defined” eligibility criteria based on parameters such as net worth, market capitalisation and prudential soundness, aligned with norms prescribed by the According to PFRDA, this will ensure that only well-capitalised and systemically rob ...

Representational image "PFRDA board has approved, in principle, a framework to permit banks to independently set up pension funds to manage NPS, with the objective of strengthening the pension ecosystem. This shall enhance competition and safeguard subscriber's interests," said PFRDA in a statement. Banks willing to sponsor these funds will have to meet a 'clearly defined' eligibility criteria based on net worth, market capitalisation and prudential soundness, aligned with RBI norms. "(It will) ensure tha ...

Core Insights - The Pension Fund Regulatory and Development Authority (PFRDA) has approved a framework allowing Scheduled Commercial Banks (SCBs) to independently establish pension funds to manage the National Pension System (NPS), aimed at enhancing competition and safeguarding subscriber interests [4][6] - The PFRDA is addressing regulatory constraints that previously limited bank participation by introducing eligibility criteria based on net worth, market capitalization, and prudential soundness, ensuring only well-capitalized banks can sponsor pension funds [4][6] - The Investment Management Fee (IMF) structure for pension funds will be revised effective April 1, 2026, to align with evolving realities and international benchmarks, introducing differentiated rates for government and non-government sector subscribers [5][6] - The National Pension System currently has over 90 million subscribers and assets under management of ₹15.5 trillion as of August 31 [5][6] Regulatory Changes - The PFRDA's new framework aims to strengthen the pension ecosystem and enhance competition among pension fund managers [4][6] - The revised IMF structure will apply to both new and existing pension funds, with the Annual Regulatory Fee (ARF) remaining unchanged at 0.015% [5][6] - The reforms are expected to lead to improved long-term retirement outcomes and enhanced old-age income security for subscribers [5][6] Governance Updates - PFRDA has appointed three new trustees to the NPS Trust Board, including Dinesh Kumar Khara as chairperson, who is the former chairman of State Bank of India [5][6]

New Delhi: In a move that could materially widen access to pension products, the Pension Fund Regulatory and Development Authority (PFRDA) board has given an in-principle nod to allow scheduled commercial banks to directly set up pension funds to manage the National Pension System (NPS). The move is expected to deepen distribution and increase competition among fund managers.The proposed framework seeks to address existing regulatory constraints that had so far limited bank participation in the pension sect ...

The Pension Fund Regulatory and Development ‌Authority (PFRDA), which ‌oversees assets worth more than $177 billion, said in a statement on ‌Wednesday that it had given in-principle approval for banks to independently set up pension funds to manage the NPS, subject to eligibility norms aligned with the Reserve Bank of India's guidelines. Banks will have to meet eligibility criteria linked to net worth, ‌market capitalisation, ‍and prudential soundness, it added. Currently, banks ‍serve as points of presenc ...