PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY
New Delhi, the 14th June, 2021
PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY (POINT OF PRESENCE) (AMENDMENT) REGULATIONS, 2021
No. PFRDA/12/RGL/139/3.—In exercise of the powers conferred by sub-section (1) read with clauses (e), (l), (n), (o), (p) and (w) of sub-section (2) of Section 52 of the Pension Fund Regulatory and Development Authority Act, 2013 (23 of 2013), the Pension Fund Regulatory and Development Authority hereby makes the following regulations to amend the Pension Fund Regulatory and Development Authority (Point of Presence) Regulations, 2018, namely: –
1. These regulations may be called the Pension Fund Regulatory and Development Authority (Point of Presence) (Amendment) Regulations, 2021.
2. These shall come into force on the date of their publication in the official gazette.
3. In the Pension Fund Regulatory and Development Authority (Point of Presence) Regulations, 2018: –
(I) Definitions under sub-regulation (1)(g) of regulation 2 shall be substituted as below –
“Pension Schemes” for the purpose of these regulations shall include the pension schemes regulated by the Authority being the National Pension System (NPS), NPS-Lite-Swavalamban, Atal Pension Yojana (APY) and any other pension scheme regulated and/or administered by the Authority or any other pension scheme of the Government of India.
(II) Sub-regulation (1)(a) of regulation 5 shall be substituted as below –
registered with and regulated by any regulator in India including the Reserve Bank of India, the Securities and Exchange Board of India, the Insurance Regulatory and Development Authority of India, the Pension Fund Regulatory and Development Authority and the National Housing Bank
Provided that this requirement shall not be applicable to entities applying only under sub clause (iii) of regulation 3.
(III) Sub-regulation (1)(g) of regulation 5 shall be substituted as below –
shall possess a two year track record of profitability (Profit after tax) as on the last day of the immediately preceding financial year:
Provided that such condition shall not apply in respect of applicant(s) being (i)Scheduled Commercial banks (SCBs) holding license issued by the Reserve Bank of India, and proposes to conduct its activities under the Atal Pension Yojana, in which case the capital requirements, specified by the Reserve Bank of India shall be considered, in respect of losses incurred in the preceding years or (ii) an online marketing company distributing financial products or entities/ departments/ ministries of central & state governments:
Provided further that such condition shall also not be applicable, in respect of new Payment banks, Small Finance banks and entities offering like services, if the application to act as point of presence is made within a period of five years from the date of registration of such entity with the concerned regulator, for such activities.
(IV) Sub-regulation (1)(a) of regulation 9 shall be substituted as below-
whether the applicant has in the past been refused certificate of registration by any of the regulators including, Reserve Bank of India, the Securities and Exchange Board of India, the Insurance Regulatory and Development Authority of India, Pension Fund Regulatory and Development Authority and National Housing Bank or to any entity which controls the applicant and if so, the ground for such refusal to the applicant or such entity which controls the Applicant, or whether the applicant or principal officers, have been convicted for any offence involving moral turpitude, economic offence, violation of any securities or banking law or fraud;
(V) Regulation 13 shall be substituted as below-
13. Period of validity of certificate of registration— (1) Subject to compliance with the provisions of the Act, rules and regulations, the certificate of registration granted to a point of presence shall remain valid unless suspended or cancelled by the Authority.
(2) Where a certificate of registration has been granted subject to conditions, the validity of such registration shall be construed as subject to such conditions.
(3) A point of presence may, within ninety days before the expiry of five years from the date of registration or from the date of payment of renewal fee last accepted by the Authority, make an application in the specified form to the Authority for acceptance of the renewal fee:
Provided that if the application along with renewal fee reaches the Authority, not later than one year from the date due for payment of renewal fee, an additional fee of rupees one thousand per month for such period of delay shall be payable by the applicant to the Authority.
(4) The renewal fee shall be a sum calculated at the rate of one-half percent of the charges earned out of activities under National Pension System or other pension schemes put together, in the preceding financial year, subject to a minimum of rupees fifteen thousand and a maximum of rupees one lakh:
Provided that in respect of an applicant which proposes to seek registration solely for conduct of activities under the Atal Pension Yojana (APY) or for servicing only for own employees and other personnel or for entities /departments/ ministries of central & state governments this condition shall not be applicable.
(VI) Sub-regulation (1)(II)(f) of regulation 15 shall be substituted as below-
the point of presence shall transfer the contributions received from the subscriber or their employer or deducted from salary of the employees [in case of entities registered under sub regulation (iii) of regulation 3] to the National Pension System Trust account maintained with the Trustee Bank and upload the subscriber contribution files with the central recordkeeping agency within the timeframe laid down under the service standards or as per the guidelines issued by the Authority for the purpose;
(VII) Sub-regulation (1)(III)(b) of regulation 15 shall be substituted as below-
Every point of presence will open or have 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” and such an account shall be a non-withdrawable account with an option to transfer the funds to NPS Trust account or only in exceptional cases such as wrong entries, unidentified entries or amount not pertaining to subscriber contribution, for reasons to be recorded in writing, it may be credited to any other account as may be specified by the authority through guidelines/circulars. The authority to transfer the collection amount will reside with the point of presence.
Provided that those point of presence who are already registered and having bank accounts with different nomenclature and usage shall within a period of ninety days from notification of this regulation, comply with this condition
(VIII) New sub-regulation (5) shall be added under regulation 15 as below-
(5) The point of presence registered for activities under sub-clause (i) or (ii) of regulation 3, may engage the services of individuals who are working as business correspondents or agents within their existing business structure for facilitating the distribution of pension schemes. The business correspondents or agents shall not be allowed to collect contribution by way of cash and permitted to collect it only by means of Cheque or Demand Draft or through electronic mode in favour of the associated point of presence as per the prescribed nomenclature of accounts of point of presence in accordance with regulation 15(1)(III)(b). The point of presence solely shall be liable for any acts of omission or commission by the business correspondent or agents in discharge of their functions including monitoring their activities and imparting training on pension schemes to them.
(IX) New sub-regulation (6) shall be added under regulation 15 as below-
(6) The point of presence registered for activities under sub-clause (i) and (ii) may engage services of Retirement Advisers registered with the Authority in accordance with PFRDA (Retirement Advisers) Regulations, 2016.
(X) Heading and Sub-regulation (1) of Regulation 17 shall be substituted as below-
Maintenance of records and audit of accounts—(1) The following records shall be kept by the point of presence in respect of its activities for a period as prescribed in the guidelines issued by the Authority for this purpose:—
(XI) Sub-regulation (1)(e) of Regulation 17 shall be substituted as below-
details of subscriber-wise instructions such as change of PoP, change of CRA, change of PF, change of scheme, change of nomination details, change of personal details, change of contact details, change of address, error rectification requests or any other requests introduced by the Authority received, processed and sent to central recordkeeping agency;
(XII) Sub-regulation (1)(f) shall be added under regulation 17 as below-
details of subscriber-wise exit / withdrawal / partial withdrawal requests received, processed and sent to central recordkeeping agency;
(XIII) Sub-regulation (2) of Regulation 17 shall be deleted.
(XIV) Sub-regulation (1) of Regulation 21 shall be substituted as below-
Each point of presence shall appoint a compliance officer who shall be responsible for monitoring compliance by it of the provisions of Act, rules and regulations, notifications, guidelines, instructions issued by the Authority including redressal of subscriber grievances.
(XV) Sub-regulation (2) of Regulation 25 shall be substituted as below-
The point of presence shall allow the Authority or its authorized representative or auditor to have a reasonable access to the premises occupied by it or by any other person on its behalf and also extend reasonable facility for examining any books, records, documents and computer data in the possession of the points of presence and point of presence – sub entity engaged by point of presence or such other person and also provide copies of documents or other materials which in the opinion of the Authority or its authorized representative or auditor, are relevant for the purpose of the inspection or audit.
(XVI) Regulation 28 shall be deleted.
(XVII) Sub-regulation (10)(ii) of Regulation 44 shall be substituted as below-
receive subscriber registration form, subsequent service requests including exit request in such form as specified or laid down by the authority duly filled and signed by the subscriber along with the necessary documentation;
(XVIII) Sub-regulation (10)(iv) of Regulation 44 shall be substituted as below-
ensure that the subscriber registration form, subsequent service requests including exit requests submitted by the applicant are complete in all respects;
(XIX) Sub-regulation (10)(v) of Regulation 44 shall be substituted as below-
ensure that contribution is collected only by means of Cheque or Demand Draft or through electronic mode in favour of the point of presence to which the point of presence-sub entity is associated as per the prescribed nomenclature of accounts of the said point of presence in accordance with regulation 15(1)(III)(b). Collection of National Pension System contributions by way of cash is not permitted for point of presence sub-entity;
SUPRATIM BANDYOPADHYAY, Chairperson
1. The principal regulations, The Pension Fund Regulatory and Development Authority (Point of Presence) Regulations, 2018 were published in the Gazette of India on 25th June, 2018 vide notification No. PFRDA/12/ RGL/139/3.