Pension Fund Regulatory and Development Authority issued a circular on 15 December 2025 introducing an incentive framework for Points of Presence (PoPs) to promote National Pension System (NPS) enrolment through Farmer Producer Organizations (FPOs). Recognising the critical role of agriculture and allied activities in supporting a large share of India’s population, the regulator highlighted FPOs as effective last-mile channels for pension outreach in rural and underserved areas. Following earlier permission allowing MCA-registered FPOs to act as Pension Agents, the Authority approved a registration/activation incentive of up to ₹100 per subscriber payable to PoPs for each new NPS enrolment facilitated through FPOs. The incentive is over and above existing PoP charges and is subject to receipt of the prescribed initial contribution and minimum annual contribution. The framework is applicable until 31 March 2027 and will be reviewed thereafter, aiming to expand pension coverage and deepen financial security in the agricultural sector.
Pension Fund Regulatory and Development Authority
Circular No. PFRDA/2025/23/NPS-AGRI/01 | Dated: 15th December, 2025
To
All PoPs under NPS
Subject: Incentive structure to PoPs for NPS enrollment facilitated through Farmer Producer Organizations (FPOs).
The Agriculture and Allied Activities sector has long been the backbone of the Indian economy, playing a vital role in national income and employment. This sector contributes approximately 18% of the country’s GDP for FY23- 24 and supports about 42% of the population. Lately, Farmer-Producer Organizations (FPOs) have emerged as key entities, enabling small and marginal farmers to pool resources, reduce costs, access markets, adopt technology, and secure affordable credit. FPOs are being integrated with digital platforms like e-NAM, ONDC and GeM to enhance market access.
Recently, in order to enhance pension distribution network and for providing last-mile connectivity, particularly in areas with limited awareness and access, PFRDA vide its circular dated 23.09.2025 has allowed Farmers Producers Organizations (FPOs) (which are registered with Ministry of Corporate Affairs (MCA)) for their engagement as Pension Agent, for distribution of Pension Scheme. Currently, there are over 45,000 FPOs registered in India.
Incentive Framework to PoPs for NPS enrollment facilitated through Farmer Producer Organizations (FPOs).
To promote and encourage initial adoption, an incentive of ₹100 per subscriber is proposed to be paid to PoPs for each NPS enrollment facilitated through Farmer Producer Organizations (FPOs). This incentive, in addition to the existing PoP charge structure, is intended to compensate for higher outreach costs and motivate PoPs to actively engage with FPOs in expanding NPS coverage in Agriculture and allied sector, especially in rural areas. The Incentive Framework is as under:
| Type of Incentive | Eligibility Criteria | Conditions | Rate |
| Registration/Act ivation Incentive to PoPs, for each NPS enrollment facilitated through FPOs. | Enrolment of new individual subscribers by the PoPs through FPOs as Pension Agent |
|
Upto ₹100 per capita
|
The incentive framework for PoPs is applicable for NPS enrollment facilitated through Farmer Producer Organizations (FPOs) till 31st March 2027 and this framework would be reviewed thereafter.
This circular is being issued in exercise of the powers conferred under Section 14 of the Pension Fund Regulatory and Development Authority Act, 2013.
Ashish Kumar
Chief General Manager
