National Pension System (NPS) – Structural Reforms (2026)
Context
- PFRDA approved major reforms to deepen pension ecosystem
- Aims to increase competition and align with global benchmarks
PFRDA
- Statutory body under PFRDA Act, 2013
- Jurisdiction
- National Pension System (NPS)
- Atal Pension Yojana (APY)
- Composition
- 1 Chairperson
- 3 Whole-time Members
- 3 Part-time Members
- Goal
- Ensure old-age income security
- Protect subscriber interests
Major Indian Pension Schemes
- National Pension System (NPS)
- Mandatory for Central Government employees since 2004 (except armed forces)
- Open to all citizens including NRIs (18–70 years)
Institutional Participation – Entry of Banks
- New power
- Scheduled Commercial Banks (SCBs) can independently sponsor and set up Pension Funds (PFs)
- Earlier constraint
- Regulatory barriers limited direct bank participation
- Eligibility criteria
- Net worth
- Market capitalisation
- Prudential soundness aligned with RBI norms
