Archive · 7 Sep 2026
PFRDA Orders NPS Scheme Names, Risk Categories Within 30 Days
India’s pension regulator is changing how NPS investment schemes are named and grouped.
Pension funds have 30 days to update their existing schemes.
Each scheme must fit into one category based mainly on how much money it can invest in shares.
Category A has the highest possible equity exposure, while Category E has the lowest.
Higher equity exposure can mean larger ups and downs in value.
Schemes must use standard names and display a risk-o-meter.
Websites and enrollment platforms must show important details so people can compare schemes.
Subscribers can hold multiple MSF schemes but can change their scheme or pension fund only twice per financial year for each PRAN.
The changes are intended to make pension choices clearer and easier to compare.
PFRDA has given pension funds 30 days from its August 28, 2026 circular to submit modified scheme details and rename existing MSF schemes.
Existing schemes spanning multiple equity-based categories must be modified, restructured or reclassified into a single prescribed category.
The new framework replaces the distinction between Common Schemes and Multiple Scheme Framework schemes and caps the number of schemes pension funds can offer.
NPS schemes will use categories ranging from A, with 80%–100% equity exposure, to E, with 0%–10% exposure, alongside risk-o-meters and standardised names.
Subscriber platforms must show comparable information such as returns, benchmarks, charges, risk levels and assets under management before pension-fund selection.
- Who
- The Pension Fund Regulatory and Development Authority, pension funds and NPS subscribers.
- What
- PFRDA is standardising NPS scheme names, equity-based risk categories, disclosures and subscriber-selection procedures.
- When
- The circular is dated August 28, 2026; pension funds have 30 days from that date to submit modified scheme details and rename existing MSF schemes.
- Where
- Across the National Pension System and its subscriber-facing platforms, including CRA platforms and onboarding channels.
- Why
- To make NPS investment options more standardised, transparent and easier for subscribers to understand and compare.
- Regulator
- Pension Fund Regulatory and Development Authority (PFRDA)
- Compliance deadline
- 30 days from the August 28, 2026 circular
- Highest equity category
- Category A: Aggressive Growth, 80%–100% equity exposure; very high risk
- Lowest equity category
- Category E: Debt involving government or corporate bonds, 0%–10% equity exposure
- Scheme changes
- Subscribers may change their investment plan, pension fund or both up to two times per financial year per PRAN
- Required disclosures
- Scheme names, launch dates, historical returns, benchmarks, charges, risk-o-meters and assets under management
- Default after winding up
- Subscribers who do not choose another scheme are migrated to the Life Cycle 50 – Moderate (10E/55Y) Scheme under Tier I