Pictures are used for consultant functions solely. File | Photograph credit score: Getty Pictures/iStockphoto
India’s Pension Fund Regulatory Authority has given permission to banks to sponsor pension funds that handle funds underneath the Nationwide Pension System (NPS) in a bid to extend competitors within the sector.
The Pension Fund Regulatory and Growth Authority (PFRDA), which oversees over $177 billion in belongings, stated in an announcement on Wednesday (31 December 2025) that it has given in-principle approval for banks to arrange unbiased pension funds to handle NPS, topic to eligibility standards according to Reserve Financial institution of India (RBI) pointers.
It added that banks should meet eligibility standards relating to web belongings, market capitalization and soundness.
Presently, banks function the purpose of contact for processing subscriber registrations, donations, and different system providers. Some current pension funds are tied to monetary establishments resembling banks.
There are at the moment 10 pension funds registered with PFRDA.
The adjustments are a part of broader reforms by the regulator. In December final 12 months, PFRDA allowed NPS subscribers to spend money on gold and silver alternate traded funds, Nifty 50 index and different funding funds.
In accordance with the most recent launch, the regulator has additionally revised the funding administration price construction for pension funds from April 1, 2026.
Moreover, three new trustees have been appointed to the NPS Belief Board, together with Dinesh Kumar Khara, former chairman of State Financial institution of India, India’s largest monetary establishment.
