PFRDA Reforms NPS: Banks Can Sponsor Funds, Fees Cut for Subscribers

• PFRDA allows Scheduled Commercial Banks (SCBs) to independently sponsor and establish Pension Funds (PFs) for NPS, enhancing competition and subscriber choice.
• NPS Trust Board reconstituted with Dinesh Kumar Khara as Chairperson, alongside Swati Anil Kulkarni and Arvind Gupta, to strengthen governance and oversight.
• Investment Management Fee (IMF) structure revised for non-government subscribers, effective April 1, 2026, introducing a slab-based system with declining rates as assets grow.
• The new fee structure is expected to lower long-term costs for subscribers as pension funds scale up.
• Reforms aim to create a more competitive, well-governed, and resilient NPS framework, improving retirement security for Indian citizens.

Why It Matters: PFRDA reforms NPS, allowing banks to sponsor funds and reducing fees for subscribers, enhancing competition and retirement security.