PFRDA Proposes Faster NPS Grievance Resolution Timelines for Better Subscriber Protection

PFRDA has issued an exposure draft proposing amendments to the PFRDA (Redressal of Subscriber Grievance) Regulations, 2015 to strengthen and expedite grievance resolution mechanisms under the National Pension System (NPS). The proposed changes aim to improve accountability, reduce pendency, align the framework with evolving regulatory practices, and enhance subscriber protection. Under the revised escalation matrix, grievance resolution timelines are proposed to be substantially reduced at every level. The timeline for nodal offices and intermediaries is proposed to be reduced from 30 days to 14 days, while timelines for the Grievance Cell-PFRDA, Ombudsman, and Designated Member of PFRDA are proposed to be reduced to 7 days, 30 days, and 15 days respectively. The draft also proposes replacing NPS Trust at Level 2 with the Grievance Cell of PFRDA for stronger regulatory oversight, replacing the stipendiary Ombudsman with contractual Ombudsman, and introducing a revision application format. Public comments have been invited until 20 June 2026.

Pension Fund Regulatory and Development Authority

Date: 21st May 2026

Exposure Draft – AMENDMENTS TO PFRDA (REDRESSAL OF SUBSCRIBER GRIEVANCE) REGULATIONS, 2015

1. Background

The grievance redressal mechanism forms an integral part of the regulatory framework governing the National Pension System (NPS), ensuring protection of subscriber interests and fostering confidence in the pension ecosystem.

The grievance redressal framework is presently governed by the Pension Fund Regulatory and Development Authority (Redressal of Subscriber Grievance) Regulations, 2015.,

The said regulations specify a structured mechanism for registration, handling, and time-bound disposal of grievances through intermediaries, with an escalation framework to the NPS Trust, Ombudsman, and thereafter to the Authority.

2. Need for Review

The timelines for resolution of grievances as per the above regulations were last amended in the beginning of the year 2024 whereby, Pension Fund Regulatory and Development Authority (Redressal of Subscriber Grievance) (Second Amendment) Regulations, 2023 were notified.

Now, a need is recognized to ensure that the grievance redressal mechanisms remain responsive, efficient, and aligned with best practices across financial sector regulators as well as the Government of India. Accordingly, a review of the existing timelines is considered necessary to enhance the overall effectiveness of the grievance redressal framework.

Further, in order to ensure an impactful oversight of the redressal of subscriber’s grievances by the regulator, a need is also felt to restructure the existing levels defined in the grievance escalation matrix.

3. Existing vs Proposed Timelines, Structure of grievance escalation matrix

It is proposed to revise the timelines prescribed under various provisions of the PFRDA (Redressal of Subscriber Grievance) Regulations, 2015 with a view to ensuring faster disposal of grievances, reducing pendency, and strengthening accountability across all levels of the grievance redressal mechanism.

Further, in view of the criticality of improved and focussed supervision required on the redressal of subscriber’s grievances in a timely and qualitative manner, it is proposed to change the existing escalation matrix structure by replacing the existing role of NPS Trust at level 2 of the escalation matrix with the Grievance Cell of PFRDA at level 2. It is expected to enable direct and improved regulatory oversight of redressal of grievances at an earlier stage of the grievance escalation matrix. Further, the proposed restructuring is intended to strengthen early supervisory intervention by the Authority without altering the primary responsibility of intermediaries and nodal offices for grievance resolution or the adjudicatory role of the Ombudsman.

The proposed changes are expected to reduce overall resolution timelines, align the grievance redressal framework with prevailing practices across financial sector regulators and government platforms, and enhance accountability, transparency, and subscriber confidence.

The existing vis-à-vis proposed timelines are set out below:

4. Objectives of the Proposed Revision

The proposed revision of grievance redressal timelines is undertaken with a view to:

(i) Ensure expeditious and time-bound disposal of subscriber grievances;

(ii) Strengthen adherence to prescribed timelines across all intermediaries and authorities;

(iii) Enhance accountability of entities involved in grievance handling;

(iv) Align the framework with evolving service standards and best practices; and

(v) Strengthen the overall subscriber protection mechanism under NPS

(vi) Greater oversight by the PFRDA at an earlier level of escalation i.e. Level 2 replacing the existing role of NPS Trust in the grievance escalation matrix

5. Proposed Amendments to Regulations and Public Comments

The detailed draft of specific amendments proposed in the PFRDA (Redressal of Subscriber Grievance) Regulations, 2015 are placed as at Annexure A. The proposed changes are in the following key area:

• Reduced timelines for resolution at Level 1, 2, 3 & 4 of the escalation matrix defined under the regulations
• Rationalization of escalation structure through removal of the NPS Trust and its replacement with the Grievance Cell of the Pension Fund Regulatory and Development Authority at level 2 of the escalation matrix.
• Replacement of Stipendiary Ombudsman with Ombudsman on contract basis.
• Addition of Format for Filing Revision Application with The Designated Member, PFRDA under PFRDA (Redressal of Subscriber Grievance) Regulations, 2015 for Resolution of Grievances under NPS, UPS & APY

6. The Exposure Draft containing the proposed amendments as placed at Annexure A is open for stakeholder consultation and the same can be accessed at PFRDA website at: “Regulatory Framework → Exposure Draft”. The comments/views/suggestions are invited on or before 20th June 2026.

7. Stakeholders can furnish their comments through the online webform accessible atpfrda.org.in . Alternatively, comments can also be furnished via email in the format provided below at review-reg@pfrda.org.in :

8. The existing Regulations notified by the PFRDA can be accessed on the PFRDA’s website under “Regulatory Framework → Compendium”