The circular has been issued by the Pension Fund Regulatory and Development Authority (PFRDA) under Section 14 of the PFRDA Act, 2013 read with the Pension Fund Regulatory and Development Authority (Points of Presence) Regulations, 2018. It lays down revised operational guidelines for Points of Presence performing activities under NPS-Lite.
The Pension Fund Regulatory and Development Authority (PFRDA), through Circular dated 27 February 2026, has issued comprehensive revised operational guidelines for all Points of Presence registered for NPS-Lite activities (PoP-NPS-Lite). Exercising powers under Section 14 of the PFRDA Act, 2013 read with the PoP Regulations, 2018, the Authority has superseded earlier guidelines and mandated compliance with the revised framework effective April 1, 2026. The first reporting under the revised format will apply from the financial year ending March 2027. The guidelines cover service standards, standard operating procedures, subscriber onboarding, contribution management, reporting obligations, grievance redressal, and other regulatory functions. PoPs are required to update their systems, display the guidelines on their websites or intranet, and ensure adherence across all operational activities. Notwithstanding supersession, actions taken under earlier guidelines will remain valid for the period during which they were in force.
Pension Fund Regulatory and Development Authority
Circular No. PFRDA/2026/12/SUP-POP/04 | Dated: 27th February, 2026
To,
All Points of Presence (PoPs-NPS-Lite)
Subject: Guidelines for Operational Activities – to be followed by Point of Presence (PoPs) performing activities of NPS Lite.
In exercise of the powers conferred under Section 14 of Pension Fund Regulatory and Development Authority Act, 2013 read with Chapter VII of Pension Fund Regulatory and Development Authority (Points of Presence) Regulations, 2018, and amendments thereof, the following guidelines are being issued. These guidelines shall supersede the earlier guidelines issued for compliance by all Points of Presence registered under Regulation 3(1) – of PoP Regulations (hereinafter referred to as ‘PoP-NPS- Lite’). Each PoP-NPS- Lite shall adhere to the revised guidelines in all its operational activities with respect to NPS- Lite. These guidelines shall be effective from April 01, 2026 and shall supersede the existing guidelines. The first reporting under the revised format shall be applicable from Financial Year (FY) ending on March 2027 onwards.
The detailed guidelines covering following points are enclosed along with this circular.
A. Service Standards
B. Standard Operating Procedures
C. Subscriber On-boarding Procedure
D. Contribution Management Procedure
E. Reports and Disclosures
F. Redressal of grievances
G. Other Functions
All entities are advised to update their system and streamline the processes to follow the operational guidelines issued by the Authority.
(Ashish Kumar)
Chief General Manager
GUIDELINES ISSUED UNDER SECTION 14 OF THE PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY, ACT, 2013 READ WITH THE PENSON FUND REGULATORY AND DEVELOPMENT AUTHORITY (POINT OF PRESENCE) REGULATIONS 2018 (AS AMENDED) IN RESPECT OF THE POINT OF PRESENCE REGISTERED UNDER THE REGULATION 3(1) THEREOF.
In exercise of the powers conferred under Section 14 of Pension Fund Regulatory and Development Authority Act, 2013 read with Chapter VII of Pension Fund Regulatory and Development Authority (Points of Presence) Regulations, 2018, and amendments thereof, (hereinafter referred as “PoP Regulations”), more particularly Regulation 15, the following guidelines are being issued for compliance by all Points of Presence registered under Regulation 3 (1) of Pension Fund Regulatory and Development Authority (Point of Presence) Regulations, 2018 and amendments thereof:
Regulation 3(1) – NPS-Lite-scheme (hereinafter referred in these Guidelines as ‘PoP-NPS-Lite’ for convenience of reference).
These guidelines shall be effective from April 01, 2026 and shall supersede the existing guidelines. Notwithstanding such supersession, anything done or any action taken under or in terms of the said guidelines, shall be deemed to be valid and have effect, for the period, when such guidelines was in force and remains applicable. The present guidelines may be modified by the Authority from time to time depending upon the service requirement/amendments in the Regulations, if any.
PoPs shall display these guidelines on its website/intranet.
A. Service Standards
[1] PoP-NPS-Lite shall follow the ‘Service Standards’ for all activities under NPS-Lite-scheme as specified under Schedule of these guidelines for providing the services to subscribers/prospects of NPS-Lite-scheme in mode and manner specified therein.
[2] PoP-NPS-Lite shall collect the contributions from the NPS-Lite-scheme subscribers on regular basis and aggregate the contribution information and the relevant funds at the level of the nodal office.
[3] PoP-NPS-Lite shall provide services, such as processing of subsequent transactions for the subscribers including upload of SCF in CRA system and other services like shifting of PoP-NPS-Lite, change in personal details of the subscriber, processing of death claims processing of exit/withdrawal request, follow up on initiation of exit request under NPS-Lite by the subscriber etc., in accordance with Schedule of guidelines.
[4] PoP-NPS-Lite shall make good the loss to the subscriber in the event of any delay or violation in the Service Standard as specified under
(i) Financial transactions –
PoP-NPS-Lite shall pay compensation to subscribers @ repo rate + 2% p.a. of the transaction amount, which will be contribution amount (in case of deposit) or exit proceeds (in case of exit! withdrawal claim), rounded off to next integer value, or as per rate determined by the employer! aggregator for their employees! associates, whichever is higher, for the period of delay. The repo rate applicable shall be as declared by RBI Monetary Policy Committee from time to time and as prevalent on date of receipt of contribution.
(ii) Non-financial Transactions –
PoP-NPS-Lite shall pay @Rs 5 per day, subject to a maximum of Rs 100, or as per the rate determined by the employer !aggregator for their employees! associates, whichever is higher, for the period of delay. PoP-NPS-Lite shall always encourage subscribers to do cashless transactions.
[5] PoP-NPS-Lite shall facilitate their underlying eligible subscribers for migration to Atal Pension Yojana (APY) scheme or National Pension System (NPS), if the subscriber so desires.
[6] PoP-NPS-Lite shall resolve the grievances of the subscribers in accordance with Pension Fund Regulatory and Development Authority (Redressal of Subscriber Grievance) Regulations, 2015 and amendments thereof.
[7] In accordance with Pension Fund Regulatory and Development Authority (Points of Presence) Regulations, 2018, and amendments thereof, PoP-NPS-Lite may engage the services of banking correspondents, for facilitating distribution of pension schemes, as facilitators and shall ensure the following while associating with any facilitator:
(i) The terms and conditions of operations between PoP-NPS-Lite and the facilitator!s shall be mutually agreed upon and shall be in accordance with the Pension Fund Regulatory and Development Authority (Points of Presence) Regulations, 2018, and subsequent amendments thereof, as well as the present guidelines. PoP-NPS-Lite shall ensure flow of information from facilitators to PoP-NPS-Lite in such a way that all Turn Around Times (TATs) as specified under service level standards in Schedule.
(ii) PoP-NPS-Lite shall ensure that the facilitators should contact or communicate only with the associated PoP on all matters, and any direct communication with PFRDA shall not be entertained.
(iii) PoP-NPS-Lite shall compile and ensure submission of the specified MIS reports on behalf of its associated facilitators, to the Authority. Facilitators shall not directly submit any MIS report ! information to the Authority, which in event thereof, shall not be accepted as submission.
[8] PoP-NPS-Lite shall make available all NPS-Lite-scheme related forms, as specified by the Authority from time to time, on its website and/ or at branches, as the case may be
[9] PoP-NPS-Lite shall adhere to the PFRDA Act 2013 and all regulations made thereto, and circulars, guidelines, directions, advisories etc. issued by the Authority from time to time.
B. Standard Operating Procedures
PoP-NPS-Lite shall adhere to the Standard Operating Procedures (SOPs) for interfacing with Central Recordkeeping Agency (CRA), Trustee Bank (TB) and / or the Authority for the operational activities with respect to NPS-Lite-scheme.
C. Subscriber On-boarding Procedure
PoP-NPS Lite shall follow the service requirements for on-boarding of subscriber under NPS-Lite as specified in the Schedule-.
D. Contribution Management Procedure
PoP-NPS-Lite shall collect and process the contributions as per the service requirement specified in the Schedule. PoP-NPS-Lite shall comply with the following procedures and parameters to ensure transparency, uniformity and risk minimization.
[1] NPS-Lite-scheme contribution collection process
(i) PoP-NPS-Lite shall ensure that credible collection infrastructure is available to its underlying subscribers.
(ii) PoP-NPS-Lite shall open or maintain a collection account in the name of “Name of the PoP or its abbreviation –Collection Account – Name of pension scheme or its abbreviation – National Pension System Trust or its abbreviation” or as specified under Pension Fund Regulatory and Development Authority (Point of Presence) Regulations, 2018 and amendments thereof from time to time.
(iii) As illustration, if the Point of Presence performing activities of NPS-Lite-scheme is State Bank of India, then nomenclature of the collection account will be “SBI- Collection Account – NPS-Lite -NPS Trust”.
(iv) The collection account shall be a non-withdrawable account with an option to transfer the funds to the NPS Trust account. In exceptional cases such as wrong entries, unidentified entries or amount not pertaining to subscriber contribution, it may be credited to any other account as may be specified by Authority through guidelines/circulars and any other instructions issued by the Authority from time to time. PoP-NPS-Lite shall be required to record the reasons for such transfers in writing.
The authority to transfer the collection amount will reside with the PoP. PoP shall also record reasons for such transfers in writing and the same is subject to audit and inspection.
(v) PoP-NPS-Lite may have a collection account with itself if it is a banking entity or with any scheduled commercial bank if it is a non-banking entity.
(vi) PoP-NPS-Lite shall collect the subscriber’s contribution only from the designated/ registered branches or facilitator.
(vii) PoP-NPS-Lite shall ensure that the list of designated/registered branches including that of the facilitators, which are authorized to collect contribution from subscribers, must be made publicly available.
(viii) PoP-NPS-Lite shall ensure that the acknowledgement slip / receipt with unique number (preferably digital receipt) is being issued to the subscribers.
(ix) PoP-NPS-Lite shall ensure to collect the Permanent Account Number (PAN) of the subscribers for all cash transactions exceeding Rs.50,000/-(Rupees Fifty Thousand) or as specified under Rule 114B of the Income-tax Rules, 1962 is obtained at the time of collecting contributions. In case NPS-Lite account is opened through form 60 and PAN of the subscriber is not captured in the CRA system then it must be updated in the CRA system.
[2] Pooling of contribution in the collection account
(i) PoP-NPS-Lite is prohibited to share its collection account number with any of its individual subscribers, to avoid direct deposit of the contribution by cash/cheque into the collection account.
(ii) PoP-NPS-Lite shall ensure that the cash/cheque collected, is deposited during the Bank working hours within the TATs as specified under Schedule.
(iii) NBFC PoPs-NPS-lite to ensure that contributions collected from NPS-lite subscribers to be transferred to Trustee Bank on T Day (same day) basis.
(iv) PoP-NPS-Lite shall ensure that the deposit slips are signed and stamped by the Bank and copies are available with the PoP-NPS-Lite for further inspection and audit.
(v) The PoP NPS-Lite shall ensure to get the fees and charges earned from the NPS-Lite related transaction to a separate account of POP (other than the collection account) which shall be remitted from the CRAs through the modes of recovery of charges as permitted by the Authority from time to time; and shall maintain the trails of such transfer for audit and inspection. Further, necessary IT arrangements shall be made by PoP for the same.
(vi) PoP-NPS-Lite shall ensure that no funds remain un-identified/ un-reconciled in the collection account maintained by the PoP-NPS-Lite, and details of all contributions credited into the collection account shall be uploaded into the CRA system and funds are remitted to the Trustee Bank, as per the timelines specified under the Schedule.
(vii) PoP-NPS-Lite shall ensure strict compliance of directions/circulars issued by PFRDA in respect of processing of contributions received from aggregators/ payment gateways for digital transaction. Further, PoP-NPS-Lite shall ensure display of settlement time and charges at the level of aggregators/ payment gateways for digital transaction, at the time of initiating payment of contributions by the subscriber.
[3] Risk and Fraud Mitigation Measures
(i) PoP-NPS-Lite shall have robust and efficient mechanisms for the identification, assessment, quantification, control, mitigation and monitoring of the risks associated with all the activities related to NPS-Lite.
(ii) PoP-NPS-Lite shall have necessary control to avert the risk relating to Anti Money Laundering (AML) or Combating Financing of Terrorism (CFT) and shall be guided by the circulars, guidelines, directions, advisories etc. issued by the Authority from time to time.
(iii) PoP-NPS-Lite shall monitor the functioning and processing of the collection account on daily basis.
(iv) PoP-NPS-Lite shall ensure adequate vigilance and due diligence in subscriber registration (wherever applicable), the entire fund collection process, and at the time of exit, and shall receive withdrawal/exit requests along with all prescribed documents and KYC records.
(v) The compliance officer of the PoP-NPS-Lite shall internally review compliance of the PFRDA Act, rules and regulations made thereunder, notifications, circulars, guidelines, directions, advisories etc. issued by the PFRDA from time to time, on periodic basis or more frequently, if required, and record of the same shall be maintained. Any deviations in this regard shall be reported to the Authority.
(vi) PoP-NPS-Lite shall take all measures necessary for prevention of all forms of fraud and develop and follow PFRDA’s (Framework for Prevention and Reporting of Fraud Under NPS Architecture) Guidelines and amendments thereof.
(vii) PoP-NPS-Lite shall lay down internal controls to be followed and ensure that such controls are adequate and operating effectively; and
(viii). PoP-NPS-Lite shall make provision for indemnifying the subscriber for any loss on account of fraud or negligence on the part of the point of presence or its facilitators, which has been established.
E. Reports and Disclosures
[1] The PoP-NPS-Lite shall submit duly checked and verified reports to Supervision department – PoP, PFRDA through the mode(s) as specified by the Authority from time to time:
(i) The Exception Report shall be submitted on annual basis to Supervision department – PoPs, PFRDA within one month of completion of every Financial Year (by 30th April every year), as per Annexure 1. Notwithstanding the periodic reporting, compliance officer of the PoP shall report any major deviation/breach to the Authority on occurrence basis.
(ii) Cyber Security Certificate in accordance with applicable circular on [Annual Cybersecurity Compliance Certificate (as per Annexure 2) within 30 (thirty) days from the end of the Financial Year. Report on cyber-attacks incident pertaining to NPS-Lite activities, if any are to be submitted in terms of the Information and Cyber Security Policy of PFRDA.
[2] The details of NPS-Lite-scheme related activities undertaken by facilitators/ any other channel approved by PFRDA or Government of India, shall also be included by the PoP-NPS-Lite in the report mentioned above.
[3] PoP-NPS-Lite shall also submit the details/reports as may be specified by PFRDA from time to time.
(All the above-mentioned reports shall invariably be duly checked and verified by the Compliance Officer.)
F. Redressal of grievances
[1] PoP-NPS-Lite shall internally maintain the Grievance Redressal Mechanism in accordance with the Pension Fund Regulatory and Development Authority (Redressal of Subscriber Grievance) Regulations, 2015 and amendments thereof, for redressing complaints with respect to the services rendered to NPS-Lite-scheme subscribers. The name, e-mail id/s and telephone number/s of the designated Grievance Redressal Officer (GRO) of the ‘PoP-NPS-Lite’ shall be made public through display on website and/or at branches. The GRO shall ensure that the grievances of subscribers are redressed effectively and expeditiously.
[2] PoP-NPS-Lite shall monitor the grievances lodged in the Central Grievance Management System (CGMS) on daily basis and it shall ensure that those grievances are resolved on an immediate basis.
[3] PoP-NPS-Lite shall display contact details of grievance redressal cell for receiving the grievances directly from the mapped subscribers and shall be responsible for uploading such grievances received directly from the mapped subscribers and other intermediaries into CGMS portal of CRA, and ensure redressal of the same within the timeline specified in Pension Fund Regulatory and Development Authority (Redressal of Subscriber Grievance) Regulations, 2015 and amendments thereof. PoP shall also maintain the record of grievance received directly from the subscriber in physical or digital mode.
[4] PoP-NPS-Lite shall lodge its grievance, if any, against any intermediary such as CRA or Trustee Bank, in CGMS.
[5] Top management of PoP shall review grievances under NPS-Lite as specified by the Authority for the quality of resolution to be apprised to the Board of the PoP.
[6] POP shall devise a mechanism for reporting quality of grievance resolution observed by the top management to the Board of PoP. Such report should inter-alia include number of grievances received by the PoP over a period, number of grievances resolved by it; number of cases where appeals have been filed, Turn Around Time (TAT) taken for grievance resolution and report regarding review of quality of resolution of top management.
[7] PoP-NPS Lite are required to comply with and take necessary action on communications issued by the NPS Trust and/or the Ombudsman.
G. Other Functions
[1] Appointment of Compliance Officer, Designated Director and Principal Officer
(i) PoP-NPS-Lite shall appoint Compliance Officer, Designated Director and Principal Officer as per proviso under regulation 21 of Pension Fund Regulatory and Development Authority (Point of Presence) Regulations, 2018 and amendments thereof. The Compliance Officer shall be responsible for monitoring compliance under NPS-Lite including provisions of the PFRDA Act 2013, rules, regulations, notifications, circulars, guidelines, directions, advisories and any other instructions issued by the Authority from time to time.
(iii) PoP-NPS-Lite shall ensure that any change in the above-mentioned officers is communicated to the Authority within 3 (three) working days of the same as per format (Annexure 3). Further, frequent change of Compliance Officer may be avoided to ensure the continued monitoring and compliances. POP-NPS-Lite to also ensure proper handover takeover of the duties, in case of any such changes
(iii) The latest details available with PFRDA with respect to the Compliance Officer of the PoP-NPS-Lite shall be considered for serving any notice(s) or taking any regulatory action(s), in case of any breach of any regulation or operational guidelines, as envisaged under the extant Regulations.
[2] Registration and display of NLOO/NLAO/NLCC
PoP-NPS-Lite is advised to register its service provider branches or offices performing the activities under NPS-Lite in the CRA(s) system as ‘NLOO/NLAO/NLCC’ and shall ensure that the list is made available on its website.
[3] Confidentiality
PoP shall maintain absolute confidentiality with respect to all records, data and information received by it in accordance with PFRDA (Point of Presence) Regulations, 2018 and amendments thereof from time to time.
[4] IT and cyber security requirements:
PoP-NPS-Lite shall have adequate IT infrastructure at all its branches registered for carrying out the activities under NPS-Lite-scheme specified under the PFRDA Act, 2013, rules, regulations, notifications, guidelines etc.
(i). For access to the CRA system, the concerned PoP-NPS-Lite shall:
(a) Have regular and uninterrupted internet connectivity for web-based interaction;
(b) Have demonstrated capability to electronically transmit the information related to NPS-Lite scheme subscriber contribution through the Subscriber Contribution Files (SCFs) as per the specified timelines;
(c) Have adequate systems with Operating System (OS), web browsers etc. at all its branches and back-office software for:
(I) Receiving transaction requests and uploading in the CRA system;
(II) Issuance of acknowledgement slips with unique ID against receipt of subsequent contribution and all other activities; and
(III) Monitoring status of each transaction and generating regular MIS reports for internal control purposes.
(ii). It shall be the responsibility of the PoP-NPS-Lite to utilize the IT infrastructure and act on the basis of views and reports made available by CRA, for providing quality service delivery to the NPS-Lite-scheme subscribers.
(iii). PoP-NPS-Lite shall ensure compliance of cyber security policy and submit the reports as specified by Authority from time to time.
[5] Compliance with respect to other guidelines
PoPs-NPS-Lite shall follow the Guidelines, Circulars, Notifications, Advisories and Directions issued by the Authority from time to time and any other law in force while performing the activities related to Point of Presence
Referred circular and other relevant documents are available at www.pfrda.org.in.
