Government-owned companies and other entities classified as “Government Entities” under the can continue using Point of Presence (PoP) service providers by paying a flat annual charge of ₹500 per subscriber, according to a fresh circular issued by the Pension Fund Regulatory and Development Authority (PFRDA).
The move comes as a relief for several Central Public Sector Enterprises (CPSEs) and other government-linked organisations that had flagged operational difficulties in complying with an earlier requirement to directly manage NPS-related functions through Central Recordkeeping Agency (CRA) systems.
What has changed?
In a circular dated 16 June 2026, PFRDA said Government Entities that wish to continue availing PoP services can do so by paying a flat fee of ₹500 per subscriber annually. The circular takes immediate effect.
The clarification modifies the practical implementation of a framework introduced on 10 March 2026, when reclassified existing NPS corporates into two categories: Government Entities and Legal Entities (other than Government). Under that framework, Government Entities were expected to have the technical and operational capability to directly interface with CRA systems without relying on PoPs.
Why did PFRDA issue the relief?
The regulator said several corporates had represented that they should be allowed to continue availing PoP services because of “various operational requirements and constraints”. Many organisations found it challenging to independently handle subscriber onboarding, contribution uploads, grievance management, withdrawals and other NPS-related activities through CRA systems.
Following representations from CPSEs, PFRDA reviewed the matter and decided to permit Government Entities to continue using PoP services for a fixed annual charge.
The decision reflects the regulator’s recognition that not all government-controlled organisations currently possess the infrastructure needed to undertake end-to-end NPS administration internally.
What were the original conditions?
Under the March 2026 framework, an organisation seeking classification as a Government Entity had to satisfy three key conditions:
- All employees had to be mandatorily covered under NPS from a specified cut-off date.
- Any Assets Under Management (AUM) held under a Superannuation Fund had to be transferred to the NPS architecture within one year.
- The organisation had to possess full technical and operational capability to integrate directly with CRA systems and perform subscriber-related activities without the involvement of a PoP.
It was the third condition that triggered concerns from several organisations, ultimately leading to the latest relaxation.
Which services are covered now?
The ₹500 annual charge covers a broad range of services typically offered by PoPs, including:
- Opening of NPS accounts.
- Uploading subscriber information.
- Contribution remittance.
- fund switching.
- Scheme preference changes.
- Nomination updates.
- Partial withdrawal transactions.
- Other subscriber servicing activities handled by PoPs.
However, PFRDA has clarified that the charge applies only to PoP services and does not include fees payable to other intermediaries within the NPS ecosystem.
Instead of forcing organisations to immediately transition to a fully direct CRA-based operating model, PFRDA has created a practical alternative that allows them to continue relying on PoPs while paying a clearly defined fee. The move is expected to ease compliance pressures and minimise disruption to NPS administration for both employers and subscribers.