5 months ago
1
India’s pension money regulator has allowed banks to sponsor pension funds that volition negociate monies under the National Pension System (NPS), in a bid to bolster competition successful the sector.
The Pension Fund Regulatory and Development Authority (PFRDA), which oversees assets worthy much than $177 billion, said successful a connection connected Wednesday (December 31, 2025) that it had fixed in-principle support for banks to independently acceptable up pension funds to negociate the NPS, taxable to eligibility norms aligned with the Reserve Bank of India’s (RBI) guidelines.
Banks will person to meet eligibility criteria linked to networth, marketplace capitalisation, and prudential soundness, it added.
Currently, banks service arsenic points of presence, handling subscriber registrations, contributions, and other strategy services. Some existing pension funds person ties to fiscal institutions, including banks.
The improvement of pension reforms successful India
At present, determination are 10 registered pension funds with the PFRDA.
The alteration is portion of broader reforms by the regulator. In December past year, the PFRDA allowed NPS subscribers to put successful golden and metallic exchange-traded funds, the Nifty 50 index, and Alternative Investment Funds.
The regulator besides revised the Investment Management Fee operation for pension funds starting April 1, 2026, according to the latest release.
Additionally, 3 caller trustees person been appointed to the NPS Trust Board, including Dinesh Kumar Khara, a erstwhile president of the country’s largest lender, State Bank of India.
