Permitting the Point of Presence (PoP) for engagement of other persons as Pension Agents

Pension Fund Regulatory and Development Authority (PFRDA), vide Circular No. PFRDA/2026/41/REG-POP/07 dated July 30, 2026, has announced an important update regarding permitting Point of Presence (PoP) to engage additional categories of ‘other persons’ as Pension Agents for distribution of pension schemes.

Key Details of the Update –
• PFRDA has permitted Point of Presence (PoPs) to engage additional categories of entities as Pension Agents for the distribution of pension schemes regulated under the PFRDA Act, 2013, in accordance with Regulation 2(1)(j)(iv) of the PFRDA (Point of Presence) Regulations, 2018.

• Applicability: Applicable to all Point of Presence (PoPs) and other stakeholders under the National Pension System (NPS).

• Cluster-Based Business Organisations (CBBOs): PoPs may engage CBBOs as Pension Agents, provided such CBBOs are empanelled, appointed or engaged by Central Government Ministries/Departments, State Governments or implementing agencies such as SFAC, NAFED, NCDC or NABARD for the formation, promotion or handholding of Farmer Producer Organisations (FPOs).

• Co-operative Societies: PoPs may engage Co-operative Societies, Co-operative Unions or Co-operative Federations registered under the Multi-State Co-operative Societies Act, 2002 or the applicable Central/State Co-operative Societies Act as Pension Agents.

• Before engaging a Co-operative Society, Co-operative Union or Co-operative Federation as a Pension Agent, the PoP must undertake enhanced due diligence, including assessment of the profitability of the concerned entity.

• Key Changes: The circular expands the categories of entities eligible to function as Pension Agents by including CBBOs and eligible Co-operative Societies/Unions/Federations, subject to the prescribed conditions.

• Effective Date: July 30, 2026.

• Penalty/Consequence: Not Mentioned.

Actions if Any –
• PoPs intending to engage CBBOs as Pension Agents should ensure that such entities satisfy the prescribed eligibility criteria.

• PoPs engaging Co-operative Societies, Co-operative Unions or Co-operative Federations must conduct enhanced due diligence, including profitability assessment, before their engagement as Pension Agents.

• Continue to comply with all other conditions prescribed under the earlier circulars governing the engagement and operational framework of Pension Agents.

Compliance Deadline –
• Effective from July 30, 2026. No separate compliance deadline has been specified.