PFRDA Allows Government Entities to Continue Using PoP Services Under NPS for ₹500 Annual Fee

The Pension Fund Regulatory and Development Authority (PFRDA) has allowed Government Entities under the National Pension System (NPS) to continue availing Point of Presence (PoP) services by paying a flat annual charge of ₹500 per subscriber. 

The decision follows representations from Central Public Sector Enterprises (CPSEs) and other government-linked organisations that highlighted operational challenges in directly managing NPS-related functions through Central Recordkeeping Agency (CRA) systems. 

PFRDA Issues Clarification for Government Entities 

In a circular dated June 16, 2026, PFRDA stated that Government Entities wishing to continue using PoP services may do so by paying a flat fee of ₹500 per subscriber annually. 

The clarification takes immediate effect and modifies the practical implementation of the framework introduced by the regulator on March 10, 2026. 

Background of the March 2026 Framework 

Under the framework introduced in March 2026, existing NPS corporates were reclassified into 2 categories: 

As part of the framework, Government Entities were expected to possess the technical and operational capability to directly interface with CRA systems and manage NPS-related activities without relying on PoP service providers. 

Why PFRDA Provided the Relief 

According to PFRDA, several organisations represented that they should be allowed to continue availing PoP services due to operational requirements and constraints. 

Many entities found it challenging to independently handle activities such as subscriber onboarding, contribution uploads, grievance management, withdrawals, and other NPS-related functions through CRA systems. 

Following these representations, the regulator reviewed the matter and permitted Government Entities to continue using PoP services for a fixed annual charge. 

Original Conditions for Government Entity Classification 

Under the March 2026 framework, organisations seeking classification as Government Entities were required to meet the following conditions: 

The requirement relating to direct integration with CRA systems led to concerns among several organisations. 

Read More: PFRDA Launches AI-Powered ‘Pension Sahayak’ Portal to Streamline NPS Grievance Redressal 

Services Covered Under the ₹500 Annual Charge 

The annual charge covers a range of services typically provided by PoPs, including: 

PFRDA clarified that the ₹500 charge applies only to PoP services and does not include fees payable to other intermediaries within the NPS ecosystem. 

Conclusion 

PFRDA has permitted Government Entities under the National Pension System to continue using Point of Presence services by paying a flat annual fee of ₹500 per subscriber. The move provides an alternative to immediate direct CRA-based operations and is expected to ease administrative and compliance challenges for government-linked organisations. 

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