PFRDA proposes overhaul of Point of Presence Regulations: physical and digital modes, LLPs, trusts and societies eligible, annual fee of 1% — exposure draft, comments closed 2 October
PFRDA’s exposure draft of 2 September 2026 proposes to amend the Point of Presence Regulations, 2018: two modes of distribution (physical and digital), more legal forms eligible for digital-mode registration, application fee of ₹25,000 for physical mode and nil for digital, an annual fee of 1% of charges earned in place of five-yearly renewal, and “NPS Mitra” in place of “pension agent”. These are proposals; the comment period ended on 2 October 2026.
Key facts
- In force
- Not in force — exposure draft; comment period ended 2 October 2026
- Who it affects
- Existing Points of Presence, banks, NBFCs and other entities planning to distribute NPS or APY, LLPs, co-operative societies, societies and trusts, pension agents, NPS subscribers
- What it is
- Comments invited
- Section
- SEBI
- Published
- 2 September 2026
In 30 seconds
- Exposure Draft dated 2 September 2026; comments were invited on or before 2 October 2026 — that date has passed. Nothing has been notified.
- Proposed: two modes — physical and digital. Digital means exclusively digital onboarding, contributions and servicing; anything else, including a mix, counts as physical.
- Proposed application fee: ₹25,000 plus taxes for physical mode (now ₹10,000); no application fee for digital mode.
- Proposed: physical-mode PoPs need at least five branches or offices in India (now at least one).
- Proposed: annual fee of 1% of charges earned, minimum ₹3,000 a year, payable within 60 days of the end of each financial year.
- Proposed: “pension agent” to be called “NPS Mitra”.
हिंदी में सार
PFRDA ने 2 सितंबर 2026 को Point of Presence Regulations, 2018 में संशोधन का exposure draft जारी किया था; सुझाव देने की अंतिम तारीख़ 2 अक्टूबर 2026 निकल चुकी है और अभी कुछ भी लागू नहीं हुआ है। प्रस्ताव है कि PoP के दो मोड हों — physical और digital; physical के लिए आवेदन शुल्क ₹25,000 और digital के लिए शून्य; digital मोड में LLP, सोसाइटी और ट्रस्ट भी पात्र हों। पाँच-वर्षीय नवीकरण की जगह कमाए गए शुल्क का 1% वार्षिक शुल्क और “pension agent” की जगह “NPS Mitra” नाम प्रस्तावित है।
Before and now
Non-refundable ₹10,000 plus applicable taxes and levies.
Proposed: ₹25,000 plus taxes for physical mode; no application fee for digital mode. Not yet decided.
Status: a proposal, not a rule
On 2 September 2026 the Pension Fund Regulatory and Development Authority published an Exposure Draft of amendments to the PFRDA (Point of Presence) Regulations, 2018. Comments were invited on or before 2 October 2026. That date has passed; as on 4 October 2026 the draft remains a proposal and the existing regulations continue to apply until amendments are notified.
PFRDA says the aim is to strengthen and broaden the Point of Presence (PoP) distribution network, particularly in last-mile and underserved areas.
Existing regulation and proposed change
| Subject | Existing | Proposed |
|---|---|---|
| Modes of distribution | Physical; online; physical and online | Physical or digital. “Digital mode” is an exclusive mode where onboarding, contributions and service requests run through digital platforms authorised by the Authority; any other mode, including a combination, is “physical mode” |
| Application fee | ₹10,000 plus taxes | ₹25,000 plus taxes for physical mode; nil for digital mode. No fee for Atal Pension Yojana in either case |
| Processing of application | Acknowledgement within seven days | Acknowledgement within seven days, deficiencies communicated within fourteen days, disposal within thirty days of receipt of complete information |
| Branches (NPS, physical mode) | At least one branch or office in India | At least five branches or offices in India |
| Legal form for NPS | Company, bank or NBFC, regulated by a financial sector regulator | Entity regulated by a financial sector regulator (or a Government department, board or corporation); a company registered with another regulatory authority; a co-operative society. For digital mode also: LLP, society or association, and trust |
| Net worth | ₹2 crore, including paid-up equity capital of ₹50 lakh | ₹2 crore, including capital of ₹50 lakh, for the non-financial-regulator company, co-operative society, LLP, society and trust categories |
| Profitability | Two-year track record of profit after tax, with exemptions | Does not appear in the proposed eligibility criteria |
| Keeping registration in force | Renewal application every five years; renewal fee 0.5% of charges earned, minimum ₹15,000, maximum ₹1 lakh; late fee ₹5,000 a month | Annual fee of 1% of charges earned in the preceding financial year, minimum ₹3,000 a year, deposited within 60 days of the end of each financial year |
| Exemption power | From the profitability criterion | From the criteria on number of branches and net worth |
| Agents | “Pension agent”; engagement policy approved by the Board | “NPS Mitra”; an internal approved policy |
Other proposals
- A PoP onboarding through digital mode would maintain a separate “Digital Collection Account” for each pension scheme.
- A PoP would have to inform the Authority within seven days of any material change in information previously furnished that may adversely affect its certificate of registration.
- In considering an application, PFRDA would also look at refusals of registration by any other regulatory authority in the past five years.
- The provision on inspection or audit fees is simplified: the Authority lays down the manner and procedure through guidelines or circulars.
- The annual fee would not apply to departments or boards of the Central and State Governments, or to PoPs registered under Atal Pension Yojana.
What stakeholders should do
The window for comments — through the online webform on www.pfrda.org.in or by email to regulation-pop@pfrda.org.in — closed on 2 October 2026. Existing PoPs and prospective applicants should not act on the draft figures; watch for the notified amendment, which may differ from the draft.
Questions and answers
Have the PoP Regulations been amended?
No. The document is an Exposure Draft dated 2 September 2026 on which comments were invited up to 2 October 2026. The proposals take effect only if and when PFRDA notifies amendment regulations, and the final text may differ.
What is the proposed application fee for a Point of Presence?
The draft proposes ₹25,000 plus applicable taxes and levies for registration under the physical mode, against ₹10,000 at present, and no application fee for the digital mode. Applicants under Atal Pension Yojana would not pay any application fee.
Could an LLP or a trust become a PoP under the proposal?
The draft proposes that for registration exclusively through digital mode, an LLP, a society or association registered under the Societies Registration Act, 1860, and a trust registered under the Indian Trusts Act, 1882 would be eligible, each with a minimum net worth of ₹2 crore including capital or corpus of ₹50 lakh.
What is proposed in place of five-yearly renewal?
An annual fee of 1% of the charges earned from NPS or other pension schemes in the preceding financial year, subject to a minimum of ₹3,000 a year plus taxes, to be deposited within 60 days from the end of each financial year.
What is an “NPS Mitra”?
It is the name the draft proposes for what the regulations now call a “pension agent” — a person engaged under an agreement by a Point of Presence to facilitate distribution of NPS or other schemes regulated or administered by the Authority.
Published 2 September 2026. Updated 6 October 2026. This report is for general information and is not professional advice. Read the source document before acting on it.