The Pension Fund Regulatory and Development Authority (PFRDA) has introduced significant regulatory changes to strengthen safeguards for National Pension System subscribers. According to Mint, the regulator has amended NPS regulations to make pension funds accountable for lapses by third-party entities engaged to provide subscriber services. The change has been notified through the Pension Fund Regulatory and Development Authority (Exits and Withdrawals under the National Pension System) (Amendment) Regulations, 2026, which came into effect on 13 July 2026. The amendment inserts a new Regulation 4A into the existing Exits and Withdrawals Regulations, 2015, marking a significant shift in accountability framework for NPS operations.
Under the new regulations, pension funds cannot shift responsibility to outsourced entities for operational lapses. As reported by Mint, the regulation makes it clear that the pension fund 'shall be responsible to the subscriber' who has availed services under such schemes and 'be liable for any act of omission or commission' of the entity engaged by it. The amendment also establishes specific eligibility conditions for third-party entities, requiring them to have technological capability to integrate with pension funds or PFRDA-registered intermediaries for functions such as sharing information, facilitating payment of benefits, or providing other subscriber services. Both the pension fund and engaged entities remain subject to PFRDA's supervision and must comply with applicable laws.
The Pension Fund Regulatory and Development Authority (PFRDA) has opened continuous on-tap registration for pension fund managers to manage assets under the National Pension System (NPS) and Unified Pension System (UPS). According to PFRDA's notice dated July 16, 2026, the regulator had last opened the 'on-tap' licensing window in May 2022. The registration process will remain open until further notification by the Authority, marking a shift from the previous system of specified registration windows. As reported by PTI, the pension regulator has invited applications from prospective pension fund managers to manage the corpus under the National Pension System, opening the 'on-tap' registration window.
The National Pension System and Atal Pension Yojana together manage ₹17.7 lakh crore in assets under management. According to PFRDA data, NPS and APY together have over 9.95 crore subscribers as of June 30, 2026. The nation's retirement system continues to expand, with the combined subscriber base representing a significant portion of India's retirement savings market. The continuous on-tap registration process provides greater flexibility for pension fund managers to enter the market and manage the growing corpus under these retirement schemes.
In a separate development, PFRDA has introduced the Pension Fund Regulatory and Development Authority (Regulatory Sandbox) Regulations, 2026 to facilitate responsible innovation in the pension sector. As reported by Mint, the framework establishes a Regulatory Sandbox where eligible entities can test innovative products, services, business models or technology solutions in a controlled environment. The regulations provide for limited and time-bound regulatory relaxations to facilitate such testing, ensuring innovation in the pension ecosystem without compromising regulatory oversight or subscriber protection. This dual approach signals PFRDA's twin focus of strengthening consumer protection while creating an enabling framework for technology-led innovation in India's pension sector.
