PFRDA notified the Point of Presence Regulations 2023

As per the notification, banks and non-banks can act as PoPs to on-board NPS subscribers. This would require only single Registration for NPS, instead of multiple registrations earlier, and can operate with just one branch with wider digital presence. The timeline for disposing off applications has been reduced from 60 days to 30 days.

The simplification is in line with Union Budget 2023-24 announcement to review regulations to reduce the cost of compliance and enhance the ease of doing business. The Point of Presence are entities appointed by the PFRDA to provide services to all the citizens of India to open and operate their NPS accounts. The functions are performed through their network of branches called PoP service providers [POP-SPs]. The operations of these POP-SPs are coordinated and controlled by the POP.

Read Also : IndusInd Bank Q1 FY25 results, net profit at 2% YoY

Point of Presence shall appoint an auditor, as per the eligibility criteria prescribed by the Authority, with the approval of the Audit Committee or the Board. The audit report shall be placed before the Audit committee or the Board of the point of presence and shall be submitted to the Authority.

The Pension Fund Regulatory and Development Authority Act was passed on 19th September 2013, and the same was modified on 1st February 2014. PFRDA is regulating NPS, subscribed by employees of the Government of India, State Governments, and by employees of private institutions/organizations and unorganized sectors.

Read Also : RBI issues guidelines on higher liquidity coverage ratio for retail deposits