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NPS Pension Funds: Banks Can Now Sponsor Them

3 January 20261 min read
BANKING & FINANCENPS PensionFunds: Banks CanNow SponsorThem3 January 2026safalsetu.com

Why in the news

PFRDA cleared banks to sponsor and set up their own NPS pension funds, hoping for more competition, efficiency and depth.

Key facts

  • Approval is in-principle and conditional on norms aligned with RBI guidelines.
  • Eligibility: net worth, market capitalisation, prudential soundness and compliance.
  • Earlier role of banks: Points of Presence for registration, contributions and servicing.

Recent NPS reforms

WhenChange
Dec 2024Gold and silver ETFs, Nifty 50 index and AIFs opened to subscribers
From 1 April 2026Revised Investment Management Fee structure
GovernanceThree new trustees on NPS Trust Board, including ex-SBI Chairman Dinesh Kumar Khara

Current NPS landscape

  • Pension assets overseen: above USD 177 billion.
  • 10 registered fund managers; some already have indirect bank links.

Exam angle

  • Regulator: PFRDA; banks were PoPs earlier.
  • Fee structure effective: 1 April 2026.

Test yourself

1. Under which role did banks work in the National Pension System before PFRDA's new in-principle approval?

Banks handled registration, contributions and servicing as Points of Presence, not fund management.

2. From which date does the revised Investment Management Fee structure for NPS pension funds apply?

The new fee structure takes effect from 1 April 2026.

3. How many registered pension fund managers operate under NPS, according to the PFRDA update on bank sponsorship?

The notes state 10 registered pension fund managers under NPS.

This topic is part of Daily Current Affairs 1 & 2 January 2026 (22 topics).

All topics of the dayDay quizJanuary 2026

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