• Source:JND

New NPS Rule In 2026: The Pension Fund Regulatory and Development Authority's (PFRDA) board has approved a framework, permitting Scheduled Commercial Banks (SCBs) to launch independent Pension Funds to manage National Pension Scheme (NPS).

The development with the objective of strengthening the pension ecosystem will foster competition and protect the interests of subscribers.

The Ministry of Finance stated that the proposed framework aims to address existing regulatory constraints that have thus far limited bank participation.

By establishing clear eligibility criteria based on net worth, market capitalization, and sound financial standing, in accordance with Reserve Bank of India standards, it will be ensured that only banks with adequate capital and sound financial standing can manage pension funds.

"The detailed criteria will be notified separately and will apply to both new and existing Pension Funds," the statement said.

PFRDA Appoints New Trustees

PFRDA has also appointed three new Trustees on the Board of NPS Trust, under the view of the selection process initiated by PFRDA.

These include Dinesh Kumar Khara, Former Chairman, State Bank of India; Swati Anil Kulkarni, Former Executive Vice President, UTI AMC Trustee, and Dr Arvind Gupta, Co-Founder and Head, Digital India Foundation, and Member of the National Venture Capital Investment Committee under the Fund of Funds Scheme managed by SIDBI.

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Dinesh Kumar Khara Appointed As Chairman Of NPS Board

Khara has been appointed Chairman of the National Pension Scheme Board of Trustees.

To keep pace with changes, public expectations, and international standards, and to expand coverage in the corporate, retail, and free market sectors, the Pensions Regulatory and Development Authority (PRDA) has amended the structure of the Investment Management Committee (IMC) of pension funds, effective April 1, 2026, to protect the interests of contributors.

The revised tiered IMC introduces different rates for public and private sector contributors, which will also apply to multi-scheme frameworks, taking into account the capital of each multi-scheme framework separately.

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The PRDA anticipates that these reforms will enable contributors and stakeholders to access a more competitive, efficient, and flexible national pension system, thereby improving long-term retirement outcomes and enhancing income security in old age.

(With Inputs From Agencies --IANS)

 


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