This document provides information on the National Pension System (NPS) architecture in India. It describes that NPS has an unbundled architecture regulated by PFRDA and managed by intermediaries with defined roles. These include Points of Presence (POP) that interact with subscribers, the Central Recordkeeping Agency (CRA) that maintains subscriber records and acts as an interface, Pension Fund Managers that invest contributions, a Trustee Bank, and Annuity Service Providers that provide monthly pensions. The document outlines the functions and regulations for these intermediaries that make up the NPS architecture and system.

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NPS

2. Topics to be Covered
Introduction to NPS and How NPS works
NPS Architecture
Categorization of NPS
Benefits in NPS and Nominee Details
NPS Lite
Grievance Redressal for NPS

3. Introduction to NPS
NPS National Pension System
Defined Contribution Plan
Attempt towards finding a
sustainable solution to the
problem of providing adequate
retirement income to every
citizen of India
Regulated by PFRDA

4. How NPS works
Pension Fund
invested by PFRDA regulated professional fund
managers as per the approved investment
guidelines
Diversified Portfolio consisting Mainly of
1) Government Bonds
2) T- Bills
3) Corporate Debentures
4) Shares
5) Others
Returns are not fixed. They will vary
(market-linked) depending on the
performance of the investment

5. How NPS works
How are Returns Calculated?
Pension Fund Managers Invest Money in as per you asset
allocation
Depending upon the return given by the market ,
the NAV is declared each Day
For example NAV becomes 150 then value of your
investment will become 100*150 = 15,000
You will be allocated units based on NAVs.
For example you invested 10,000 and NAV is 100
then you will be allocated 100 units
NAV is price of one unit of
fund

6. How NPS Works
Can we open Multiple NPS Accounts? No
Can we open an NPS account jointly with my
spouse, child, relative, etc.?
No
No, NPS account can be opened only in individual
capacity

7. How NPS Works
Ombudsman under NPS
Ombudsman is a person appointed by Pension Fund Regulatory and Development Authority (PFRDA).
PFRDA may appoint one or more Ombudsmen for different territorial jurisdiction
Role of Ombudsman
The typical duties of an ombudsman are to investigate complaints and attempt to resolve them, usually through
recommendations or mediation.
Ombudsmen sometimes also aim to identify systemic issues leading to poor service or breaches of people's rights

8. Concept Check
NPS is regulated by
A. PFRDA
B. IRDAI
C. RBI
D. Ministry of Finance
Ans: Option A
In NPS the money can be invested in which of the following instruments?
A. Government Securities
B. Corporate Debentures
C. Equity
D. T-Bills
E. All of the above
Ans: Option E

9. Topics to be Covered
Introduction to NPS and How NPS works
NPS Architecture
Categorization of NPS
Benefits in NPS and Nominee Details
NPS Lite
Grievance Redressal for NPS

10. NPS Architecture
NPS Architecture
NPS Architecture for (Private Sector) NPS Architecture for (Government Sector)
Now Lets us discuss NPS Architecture in Private Sector

11. NPS Architecture
NPS Architecture – Private Sector
PFRDA has put in place unbundled architecture
managed through a set of intermediaries who have
experience in their own areas of operation.
This unique structure safeguards the subscriber’s
interest as the role of particular intermediary is
limited to the functions assigned to it and no single
intermediary/entity has complete over NPS

12. NPS Architecture
POP and POP-SPs
Points of Presence (PoP) - Appointed by PFRDA, they
include mainly commercial banks who act as the first
points of interaction of the NPS subscriber under the
NPS architecture.
POP-SPs -> The authorized branches of a POP, called
Point of Presence Service Providers (POP-SPs), act as
collection points and extend a range of customer
services to NPS subscribers
1) Collecting Subscriber Contribution
2) Change in Subscriber Details
3) Grievance Handling
Upload subscriber contribution details online into
the CRA system Bank on T+1 basis for the
corresponding PRAN of the subscriber
Remit the clear funds, after deducting its charges
and applicable tax, to the Trustee Bank on T+1 basis
for the corresponding PRAN of the subscriber
Governed by PFRDA (Point of Presence)
Regulations, 2018
NPS Architecture – Private Sector

13. NPS Architecture
NPS Architecture – Private Sector
1. SBI
2. Axis Bank
3. IDBI Bank
4. Many Others, we need not remember their names
POPs Registered Under NPS

14. NPS Architecture
NPS Architecture – Private Sector
Central Recordkeeping Agency-
Appointed by PFRDA and entrusted with the record
keeping of the data of individual subscribers; also
acts as an interface between the different
intermediaries in the NPS system
Governed by PFRDA (Central Record Keeping
Agency) Regulations, 2018

15. NPS Architecture
NPS Architecture – Private Sector
Functions of CRA
1. Registration of Subscribers and issuance of Permanent
Retirement Account Number. (PRAN)
2. Digitization and maintenance of Subscriber
record/preferences.
3. Updating Subscriber record/preferences based on
requests made for change/revision.
4. Providing operational interface to other intermediaries
under NPS Architecture.
5. Generation and dispatch of Statement of Transactions
to Subscribers and Providing subscribers with
online/electronic access to their PRAN account.
6. Receiving, acknowledging and redressal of Subscriber
grievances through Central Grievance Management
System portal.
7. Processing of Exit/Withdrawal request of Subscribers

16. NPS Architecture
What is PRAN?
Permanent Retirement Account Number (PRAN) is an
exclusive 12-digit numerical code allotted to every person
who has subscribed to the National Pension Scheme
(NPS).
It is assigned by CRA
PRAN helps you to maintain a single account
1) When you switch companies
2) When you shift from government sector to Private
sector

17. NPS Architecture
NPS Architecture – Private Sector
1. CAMS – Computer Age Management Services Limited
2. Protean eGov Technologies limited (formerly NSDL e-
Governance Infrastructure Limited)
3. KFin Technologies Private Limited (Formerly Karvy)
CRA’s Registered under NPS
Interoperability functionality allows the existing
subscribers of NPS to shift from one CRA to the other

18. NPS Architecture
NPS Architecture – Private Sector
Trustee Bank
NPS holds an account with a bank and this bank is
designated as ‘Trustee Bank’.
The Trustee Bank remits funds to the entities viz.
Pension Funds (PFs), Annuity Service Providers
(ASPs) and subscribers on receipt of instructions
from CRA.
It also does daily Reconciliation of data
Governed by PFRDA (Trustee Bank) Regulations,
2018

19. NPS Architecture
NPS Architecture – Private Sector
1. Axis bank has been appointed as Trustee Bank
List of Trustee Banks under NPS

20. NPS Architecture
NPS Architecture – Private Sector
Pension Funds
Appointed to invest the Pension Fund contribution
of all the subscribers in various schemes.
Governed by PFRDA (PF) Regulations, 2018

21. NPS Architecture
NPS Architecture – Private Sector
Functions of Pension Funds
1. Receiving of Subscribers funds from Trustee Bank
for investments as per subscriber preferences
2. Investing the funds in securities prescribed in the
investment guidelines issued by Authority and
Investment Policy approved by the Board of
Pension Fund
3. Constitution of Investment Committee and Risk
Management Committee
4. Declaration of Scheme Net Assets Value at the
end of each working day and communicating to
CRA
5. Maintenance of proper books of accounts for the
Schemes managed by the Pension Fund

22. NPS Architecture
NPS Architecture – Private Sector
We will discuss later
List of Approved Pension Fund Managers

23. NPS Architecture
NPS Architecture – Private Sector
Annuity Service Providers-
1. They are life insurance companies regulated by
IRDAI and empanelled with PFRDA
2. Responsible for investing subscriber retirement
savings in Annuity scheme and delivering monthly
pension to the subscriber
They are regulated by IRDAI

24. NPS Architecture
NPS Architecture – Private Sector
1. Life Insurance Corporation of India
2. HDFC Life Insurance Co. Ltd
3. ICICI Prudential Life Insurance Co. Ltd.
4. Many others, we need not remember the
names
List of Annuity Service Providers

25. NPS Architecture
NPS Architecture – Private Sector
Custodian-
1. Hold the scheme securities in Demat a/c in the
name of NPS Trust.
2. Informing Pension Funds about corporate actions
3. Maintaining and reconciling records of the
securities.
4. Provides valuation services to Pension Funds for
computing Scheme NAV
Governed by PFRDA (Custodian of Securities)
Regulations, 2018

26. NPS Architecture
NPS Architecture – Private Sector
Deutsche Bank AG
List of Custodians under NPS

27. Concept Check
Under NPS, which of the following is entrusted with the record keeping of the data of individual subscribers?
A. POP-SP
B. CRA
C. Trustee Bank
D. Custodian
Ans: Option B
Permanent Retirement Account Number (PRAN) is an exclusive ______ digit numerical code allotted to every person who
has subscribed to the National Pension Scheme (NPS).
A. 6
B. 9
C. 12
D. 18
E. NOTA
Ans: Option C

28. Concept Check
Which of the following is registered as CRA under NPS?
A. HDFC Bank
B. Axis Bank
C. Deutsche Bank
D. CAMS
Ans: Option D
Which of the following is not regulated by PFRDA?
A. Custodians
B. Annuity Service Providers
C. Trustee Bank
D. Pension Fund Managements
E. NOTA
Ans: Option B

29. NPS Architecture
NPS Architecture
NPS Architecture for (Private Sector) NPS Architecture for (Government Sector)
Now Lets us discuss NPS Architecture in Government Sector
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