PFRDA Reforms NPS, Allows Banks

The India — Insurance Regulatory and Development Authority (PFRDA) has approved significant reforms to strengthen India's pension ecosystem. A key change allows Scheduled Banks (India)s (SCBs) to independently set up Pension Funds to manage the National Pension System (NPS), aiming to boost competition and safeguard subscriber interests. The framework includes eligibility criteria based on net worth, market capitalization, and prudential soundness, aligned with State Bank of India (RBI) norms. Additionally, PFRDA appointed three new trustees to the India — National Pension System Trust Board, with Dinesh K. Tripathi designated as Chairperson. The Investment Management Fee (IMF) structure for Pension Funds has also been revised, effective April 1, 2026, introducing differentiated rates for government and non-government sector subscribers. These reforms are anticipated to create a more competitive, well-governed, and resilient NPS ecosystem, leading to improved long-term retirement outcomes and enhanced old-age income security for Indian citizens.