Archive · 2 Jan 2026
PFRDA Approves Banks to Manage Pension Funds
The Pension Fund Regulatory and Development Authority (PFRDA) in India has given permission for banks to create their own pension funds.
This is to help more people join the National Pension System (NPS) and make it easier for banks to manage these funds.
Banks will now have more control over pension funds, which should make the system better and more competitive.
The PFRDA also added new rules for fees and appointed new trustees to help oversee the pension system.
This change is expected to help people save more for retirement.
PFRDA allows banks to set up pension funds for NPS to boost access and competition.
Eligibility criteria for banks based on net worth, market capitalization, and prudential soundness.
Current AUM requirement of ₹50,000 crore seen as a limiting factor for banks.
PFRDA revises investment management fee structure effective from 1 April 2026.
Three new trustees appointed to the board of NPS Trust, including former SBI chairman Dinesh Kumar Khara.
- Who
- Pension Fund Regulatory and Development Authority (PFRDA) board
- What
- Allowed scheduled commercial banks to set up pension funds for NPS
- When
- In-principle approval given; detailed norms to be notified separately
- Where
- India
- Why
- To widen access to pension products, deepen distribution, and increase competition among fund managers
- Regulator
- Pension Fund Regulatory and Development Authority (PFRDA)
- Objective
- Boost National Pension System (NPS) access and competition
- Eligibility Criteria
- Based on net worth, market capitalization, and prudential soundness
- Current AUM Requirement
- ₹50,000 crore
- New Trustees
- Dinesh Kumar Khara, Swati Anil Kulkarni, Dr. Arvind Gupta
- Fee Revision Effective Date
- 1 April 2026
- Current NPS Assets
- ₹16 lakh crore
- Current Pension Funds
- 10
