PFRDA & NPS

Savitribai Phule Pune University
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A report on Pension Fund Regulatory & Development Authority
(PFRDA) and New Pension System (NPS)
Name Roll No. Work
Krushang Thakor 26 Introduction of Pfrda and
intermediaries of pfrda
Navin Prajapati 32 Investment choice,
Account opening through
eNPS Platform
Neha Agrawal 33 Introduction of NPS and
NPS Archietcture and
Benefits
Nidhi Singh 34 Contribution and
Features Of NPS
Rutuja Sonawane 43 Enrolment and
Withdrawal exist of NPS
Sohel Mulla 50 Regulatory Framework of
Pfrda and tax benefits
available.

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Pension Fund Regulatory & Development Authority:
Industry Pension
Founded August 23, 2003
Headquarters New Delhi
Key people Hemant Contractor, Chairman
Website
www.pfrda.org.in
The Pension Fund Regulatory & Development Authority Act was passed on 19th
September, 2013 and the same was notified on 1st February, 2014. PFRDA is regulating
NPS, subscribed by employees of Govt. of India, State Governments and by employees
of private institutions/organizations & unorganized sectors.
Vision Statement
To be a model Regulator for promotion and development of an organized pension
system to serve the old age income needs of people on a sustainable basis.*
Organisational Structure

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Regulatory Framework
ACTS
 Gazette Notification Dated 01st February 2014
 PFRDA Act 2013
 Gazette Notification Dated 14th November 2008
 Gazette Notification Dated 22nd December 2003
 Gazette Notification Dated 10th October 2003
RULES
 Pension Fund Regulatory and Development Authority(Appeal to Securities
Appellate Tribunal),Rules,2014
 Pension Fund Regulatory and Development Authority (Salary and Allowances
Payable to, and Other Terms and Conditions of Service of, Chairperson and
Whole-time Members) Rules, 2014
 Pension Fund Regulatory and Development Authority (Allowances Payable to
Part-Time-Members) Rules, 2014
 Pension Fund Regulatory and Development Authority (Procedure for Search and
Seizure by Authorised Officer) Rules, 2014
 Pension Fund Regulatory and Development Authority (Reports, Returns and
Statements) Rules, 2015
 Pension Fund Regulatory and Development Authority (Form of Annual Statement
of Accounts and Records) Rules, 2015
REGULATIONS
 Pension Fund Regulatory and Development Authority (National Pension System
Trust) (First Amendment) Regulations, 2019
 Pension Fund Regulatory and Development Authority (Exits and Withdrawals
under the NPS) (Fifth Amendment) Regulations 2019.
 Pension Fund Regulatory and Development Authority (Trustee Bank) (First
Amendment) Regulations 2019.

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 PFRDA (Retirement Adviser) Regulations- Compilation of Amendments till
16.11.2018.
 PFRDA (Central Record Keeping Agency) Regulations- Compilation of
Amendments till 16.11.2018.
 PFRDA (Pension Fund) Regulations- Compilation of Amendments till 16.11.2018.
 Pension Fund Regulatory And Development Authority (Exits And Withdrawals
Under The National Pension System) Regulation
 Pension Fund Regulatory And Development Authority(Point Of Presence)
Regulations,2018
 Pension Fund Regulatory and Development Authority (Central Recordkeeping
Agency) (First Amendment) Regulations 2018
under NPS) (Fourth Amendment) Regulations 2018
 Pension Fund Regulatory and Development Authority (Retirement Adviser)
(Fourth Amendment) Regulations 2017
 Pension Fund Regulatory and Development Authority (Retirement Adviser)(Third
Amendment) Regulations, 2017
Under the National Pension System)(Third Amendment) Regulations, 2018
Under the National Pension System)(Second Amendment) Regulations, 2017
Under the National Pension System)(First Amendment) Regulations, 2017
 Pension Fund Regulatory and Development Authority (Point Of Presence)
(Second Amendment) Regulations 2017
(Second Amendment) Regulations 2017
 Pension Fund Regulatory and Development Authority (Retirement Adviser) (First
Amendment) Regulations 2017
 Pension Fund Regulatory and Development Authority (Aggregator) (First
 Pension Fund Regulatory and Development Authority (Point of Presence) (First

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 Pension Fund Regulatory and Development Authority (Pension Fund) (First
Amendment) Regulations, 2016
Regulations, 2016
 Pension Fund Regulatory and Development Authority (Procedure for inquiry by
Adjudicating Officer) Regulations, 2015
 Pension Fund Regulatory and Development Authority (Point of Presence)
Regulations, 2015
 Pension Fund Regulatory and Development Authority (Pension Advisory
Committee Meetings) Regulations, 2015
 Pension Fund Regulatory and Development Authority (Procedure for Authority
Meetings) Regulations, 2015
 Pension Fund Regulatory and Development Authority (Redressal of Subscriber
Grievance) Regulations, 2015
 Pension Fund Regulatory and Development Authority (Subscriber Education and
Protection Fund) Regulations, 2015
 Pension Fund Regulatory and Development Authority (Trustee Bank) Regulations,
2015
 Pension Fund Regulatory and Development Authority (Aggregator ) Regulations,
2015.
Under the National Pension System) Regulations, 2015
 Pension Fund Regulatory and Development Authority (Central Recordkeeping
Agency) Regulations, 2015
 Pension Fund Regulatory and Development Authority(National Pension System
Trust) Regulations, 2015
 Pension Fund Regulatory and Development Authority (Pension Fund) Regulations,
2015
 Pension Fund Regulatory and Development Authority (Employees’ Service)
Regulations, 2015
 Pension Fund Regulatory and Development Authority (Custodian of Securities)
Regulations, 2015.

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Intermediaries of PFRDA:
1. NPS
The National Pension System Trust (NPS Trust) was established by PFRDA on27th
February, 2008 with the execution of the NPS Trust Deed. The NPS Trust has been set
up and constituted for taking care of the assets and funds under the National Pension
System (NPS) in the interest of the beneficiaries (subscribers). Individual NPS
subscribers shall be the beneficiaries of the NPS Trust. The NPS fund are managed by
the Board of Trustees to realize and fulfil the objectives of the NPS Trust in the
exclusive interest of the Subscribers.
2. Central Recordkeeping Agency (CRA)
Following entities are selected as Central Recordkeeping Agency (CRA) under
National Pension System (NPS):
i. NSDL e-Governance Infrastructure Limited
ii. Karvy Computershare Private Limited
Central Recordkeeping Agency is required to establish an internal system that delivers
compliance with standards for internal organization and operational conduct, with the
aim of protecting the interests of NPS subscribers and their assets.
CRA acts as an operational interface between PFRDA and other NPS intermediaries
such as Pension Funds, Annuity Service Providers, Trustee Bank etc.
3. Pensionfund
Pension fund” means an intermediary which has been granted a Certificate of
Registration by the Authority as a Pension Fund for receiving contributions,
accumulating them and making payments to the subscriber in the manner as may be
specified by the Authority.
Appointed and registered Pension Funds manages pension corpus through various
schemes under National Pension System. Pension Funds use their access codes to
confirm receipt of netted assets and instructions regarding fund allocation, confirm
allocation of funds and communicate the NAV of each scheme to CRA and the
custodian on a regular basis.

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Pension Funds also acts as a bridge between the various intermediaries under NPS
architecture and PFRDA in order to protect the interests of the subscribers by providing
the information and data as is required by the Regulator.
4. Trustee Bank
Axis Bank Ltd has been appointed by PFRDA as the Trustee Bank for National Pension
System (NPS) effective from 1st July, 2013.
Trustee Bank as an intermediary is responsible for the day-to-day flow of funds and
banking facilities in accordance with the guidelines/ directions issued by the Authority
under NPS. It receives NPS funds from all Nodal Offices and transfers the same to the
Pension Funds / Annuity Service Providers/other intermediaries as per the operational
guidelines. The funds which are received with complete information [PAOFIN details
< Tran Id> < PAO Id>] are transferred to PFMs for investment and the funds having
incomplete information or with any other discrepancy are returned back to the
respective accredited banks of the Nodal Offices for credit to the source account.
The NPS Trustee Bank accounts are maintained on behalf of the NPS subscribers and
in the name of the NPS Trust. NPS Trust is the registered owner of NPS funds.
However, individual NPS subscribers remain beneficial owners of these funds.
5. Custodian
Custodian shall mean “Custodian of Securities” who has been granted a Certificate of
Registration by the Authority for providing custodial and depository participant
services for the Pension schemes regulated by the Authority.
6. Point of presence(POP)
“Point of Presence” means an intermediary registered with the Authority under sub-
section (3) of section 27 as a point of presence and capable of electronic connectivity
with the central recordkeeping agency for the purposes of receiving and transmitting
funds and instructions and pay out of funds;
POP is the first point of interaction between the subscriber and the NPS architecture.
Point of Presence (POP) shall perform the functions relating to registration of
subscribers, undertaking Know Your Customer (KYC) verification, receiving

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contributions and instructions from subscribers and transmission of the same in the NPS
architecture. Pop(s) and their authorized branches (Pops PS) shall also be required to
comply with the provisions of the Prevention of Money Laundering (PML) Act, 2002
and the rules framed thereunder, as may be applicable, from time to time.
7. Aggregators
Aggregators shall be intermediaries identified and approved by PFRDA, to perform
subscriber interface functions under NPS-Swavalamban in respect of their constituent
groups. They shall be entities already in existence having continuous functional
relationship with a known customer base for delivery of some socio-economic goods /
services.
NATIONAL PENSION SYSTEM
Introduction:
The National Pension System Trust (NPS Trust) was established by PFRDA on27th
February, 2008 with the execution of the NPS Trust Deed. The NPS Trust has been set
up and constituted for taking care of the assets and funds under the National Pension
System (NPS) in the interest of the beneficiaries (subscribers). Individual NPS
subscribers shall be the beneficiaries of the NPS Trust. The NPS fund are managed by
the Board of Trustees to realize and fulfil the objectives of the NPS Trust in the
exclusive interest of the Subscribers.
All Citizen of India
The Central Government has introduced the National Pension System (NPS) with effect
from January 01, 2004 (except for armed forces). NPS was made available to All
Citizens of India from May 01, 2009. Pension Fund Regulatory and Development
Authority (PFRDA), the regulatory body for NPS, has appointed NSDL as Central
Recordkeeping Agency (CRA) for National Pension System. CRA is the first of its kind
venture in India which will carry out the functions of Record Keeping, Administration

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and Customer Service for all subscribers under NPS. CRA shall issue a Permanent
Retirement Account Number (PRAN) to each subscriber and maintain data -base of
each Permanent Retirement account along with recording transactions relating to each
PRAN.
National Pension System (NPS), Regulated By PFRDA, is an important milestone in
the development of a sustainable and efficient voluntary defined contribution pension
system in India. It has the following broad objectives:
● Provide old age income
● Reasonable market based returns over the long term
● Extending old age security coverage to all citizens
1. What is National Pension System?
National Pension System (NPS) is a government-sponsored pension scheme. It was
launched in January 2004 for government employees. However, in 2009, it was opened
to all sections. The scheme allows subscribers to contribute regularly in a pension
account during their working life. On retirement, subscribers can withdraw a part of the
corpus in a lump sum and use the remaining corpus to buy an annuity to secure a regular
income after retirement.
It is a pension cum investment scheme launched by Government of India to provide old
age security to Citizens of India. It brings an attractive long term saving avenue to
effectively plan your retirement through safe and regulated market-based return. The
Scheme is regulated by Pension Fund Regulatory and Development Authority
(PFRDA). National Pension System Trust (NPST) established by PFRDA is the
registered owner of all assets under NPS.

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2. What are the different sectors in NPS?
NPS can be broadly classified into two categories and it is further customised for
different sectors as mentioned below:
a. Government Sector:
I. Central Government:
The Central Government had introduced the National Pension System
(NPS) with effect from January 1, 2004 (except for armed forces). All
the employees of Central Autonomous Bodies who have joined on or
after the above mentioned date are also mandatorily covered under
Government sector of NPS. Central Government/CABs employee
contributes towards pension from monthly salary along with matching
contribution from the employer.
II. State Government:
Subsequent to Central Government, various State Governments adopted
this architecture and implemented NPS with effect from different dates.
A State Autonomous Body (SAB) can also adopt NPS if the concerned
State Government/UT have adopted the NPS architecture and initiated
implementation of the same. State Government/SABs employees also
contribute towards pension from monthly salary along with matching
contribution from the employer.
b. Private Sector (Non-Government Sector):
I. Corporates:
NPS Corporate Sector Model is the customized version of NPS to suit
various organizations and their employees to adopt NPSas an organized
entity within purview of their employer-employee relationship.
II. All Citizens of India:
Any individual not being covered by any of the above sectors has been
allowed to join NPS architecture under the All Citizens of India sector
from May 01, 2009.
3. Why should I open NPS Account? (Advantages)

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Opening NPS account has its own advantages as compared to other pension product
available. Below are few features which make NPS different from others:
a. Low cost product
b. Tax breaks for Individuals, Employees and Employers
c. Attractive market linked returns
d. Easily portable
e. Professionally managed by experienced Pension Funds
f. Regulated by PFRDA, a regulator set up through an act of Parliament
4. Who can join NPS?
Any individual citizen of India (both resident and Non-resident) in the age group of 18-
65 years (as on the date of submission of NPS application) can join NPS. The only
condition is that the person must comply with know your customer (KYC) norms.
5. Can NRI join NPS?
Yes, an NRI can open an NPS account. Contributions made by NRI are subject to
regulatory requirements as prescribed by RBI and FEMA from time to time. However,
OCI (Overseas Citizens of India) and PIO (Person of Indian Origin) card holders and
HUFs are not eligible for opening of NPS account. The account will be closed if there
is a change in the citizenship status of the NRI.
6. Who manages the money invested in NPS?
The money invested in NPS is managed by PFRDA-registered Pension Fund Managers.
At the moment, there are eight pension fund managers: ICICI Prudential Pension Fund,
LIC Pension Fund, Kotak Mahindra Pension Fund, Reliance Capital Pension Fund,
SBINSE -1.02 % Pension Fund, UTI Retirement Solutions Pension Fund, HDFC
Pension Management Company, and DSP Black Rock Pension Fund Managers.
⮚ Features & Benefits of NPS
The benefits of NPS are:
a. It is voluntary - A Subscriber can contribute at any point of time in a Financial
Year and also change the amount he wants to set aside and save every year.

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b. It is simple - Subscriber is required to open an account with any one of the
POPs (Point of Presence) or through eNPS. It is flexible - Subscribers can
choose their own investment options and pension fund and see their money
grow.
c. It is portable - Subscribers can operate their account from anywhere, even if
they change the city and/or employment.
d. It is regulated - NPS is regulated by PFRDA, with transparent investment
norms and regular monitoring and performance review of fund managers by
NPS Trust.
e. Transparent: NPS is transparent and cost effective system wherein the pension
contributions are invested in the pension fund schemes and the employee will
be able to know the value of the investment on day to day basis.
f. Portable: Each employee is identified by a unique number and has a separate
Permanent Retirement Account which is portable i.e., will remain same even if
an employee gets transferred to any other office.
g. Simple: All the subscriber has to do is to open an account with his/ her Nodal
Office and get a PRAN.
h. Safety: NPS is regulated by PFRDA with transparent investment norms &
regular monitoring and performance review of fund managers by NPS Trust.
i. Dual benefit of Low Cost and compounding effect: The pension wealth
accumulates over a period of time till retirement; grows with a compounding
effect and the account maintenance charges are also low.
⮚ Types of Account:
NPS offers two accounts: Tier-I and Tier-II accounts. Tier-I is a mandatory retirement
account, and Tier-II is voluntary savings account associated with PRAN. The big
difference between the two is on withdrawal of money invested in them. You cannot
withdraw the entire money from Tier-I account till your retirement. Even on retirement,
there are restrictions on withdrawal on the Tier-I account. The subscriber is free to
withdraw the entire money from the Tier-II account. Tier II offers greater flexibility in
terms of withdrawal, unlike Tier I account, you can withdraw from your Tier II account
at any point of time.

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Tier-I account: The applicant shall contribute his/her savings for retirement into this
conditional; & restricted withdrawal Account. This is the retirement account and
applicant can claim tax benefits against the contributions made subject to the Income
Tax rules in force. You have to contribute a minimum of Rs 6,000 in your Tier-I
account in a financial year.
Tier-II account: This is a voluntary savings facility. The applicant will be free to
withdraw his/her savings from this account whenever he/she wishes. This is a not a
retirement account and applicant can’t claim any tax benefits against contributions to
this account.
What is a Permanent Retirement Account Number (PRAN)?
Every NPS subscriber is issued a card with 12-digit unique number called Permanent
Retirement Account Number or PRAN.
7. Can a person have more than one NPS account?
No, one cannot open multiple NPS accounts. In fact, there is no need to open a second
account as NPS is portable across sectors and locations.
Who can open a Tier II Account?
Subscriber who has an active Tier I account can activate a Tier II account
a. It is open for any resident Indian, NRI can’t activate Tier II account.
b. It can also be opened along with Tier I account.
c. All Government Subscribers who are mandatorily covered under NPS and have
active Tier I account, can activate Tier II account.
Benefits of Tire II Account
Below are few significant benefits of Tier II NPS Account:
⮚ Saving for your day to day need (withdrawal at any point of time)
⮚ Transfer fund to pension account ( Tier I) any time
⮚ No minimum balance required
⮚ No levy of exit load

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⮚ Separate Nomination facility available
8. What are the investment choices available in NPS?
The NPS offers two choices:
1) Active Choice: This option allows the investor to decide how the money should be
invested in different assets.
2) Auto choice or lifecycle fund: This is the default option which invests money
automatically in line with the age of the subscriber.
9. What are the investment options available under Active Choice?
The Active Choice offers three funds or investment options: Asset Class E (invests 50
per cent in stocks); Asset Class C (invests in fixed income instruments other than
government securities); Asset Class G (invests only in government securities). An
investor can choose one of these funds or opt for a combination of them.
10. What are the tax benefits available for NPS?
An employee’s own contribution is eligible for a tax deduction --up to 10 per cent of
the salary (basic plus DA) – under Section 80CCD(1) of the Income Tax Act within the
overall ceiling of Rs 1.5 lakh allowed under Section 80C and Section 80CCE.
The employer’s contribution to NPS is exempted under Section 80CCD (2).
Moreover, individuals can claim an additional deduction of up to Rs 50,000 under
Section 80CCD (1B), which is in addition to Rs 1.5 Lakhs permitted under section 80
(C).
A self-employed person can also contribute 10 per cent of his gross income under
Section 80CCD (1) in NPS.
11. When can one withdraw money from NPS?
NPS is a pension product. So, you are expected to stay invested until your retirement.
At 60, you must use at least 40 per cent of the corpus to buy an annuity income from a

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PFRDA-listed insurance company. You have the option to withdraw 40 per cent of the
corpus tax-free. You can withdraw the remaining 20 per cent of the corpus (it will be
taxed as per the income tax slab applicable to you) or use it to buy annuity.
Contribution-
The subscriber can contribute the amount through cash, local cheque, demand draft or
Electronic Clearing System (ECS) at his/her chosen POP-SP or he has the option to
contribute through eNPS platform by net banking, debit card or credit card. However,
for cash transactions exceeding Rs.50000/- subscriber needs to submit the copy of the
PAN card as per the Anti-Money laundering (AML) rules. Also, No outstation cheques
shall be accepted.
Minimum Contributions (For Tier-I)
⮚ Minimum contribution at the time of account opening and for all
subsequent transactions- Rs 500
⮚ Minimum contribution per year - Rs 1,000 excluding charges and taxes
⮚ Minimum number of contributions in a year 01
Charges and Penalty for non-compliance of mandatory minimum contributions:
⮚ If the subscriber contributes less than Rs. 1,000 in a year, his/her account would
be frozen and the facilities provided by CRA such as online view of account etc.
will be restricted.
⮚ In order to reactivate the account, the subscriber would have to pay the
minimum contributions of Rs. 500/-
⮚ A frozen account shall be closed when the account value falls to zero.
Minimum Contributions (For Tier-II)
⮚ Minimum contribution at the time of account opening - Rs.1000/- and for all
subsequent transactions a minimum amount per contribution of Rs.250/-
⮚ There is no minimum contribution requirement for the financial year and also
there is no cap on maximum contribution.
Tax benefit for self-employed:

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Eligible for tax deduction up to 10 % of gross income under Sec 80 CCD (1) with in
the overall ceiling of Rs. 1.50 lakhs under Sec 80 CCE.
Subscriber is allowed deduction in addition to the deduction allowed under Sec.
80CCD(1) for additional contribution in his NPS account subject to maximum
investment of Rs. 50,000/- under sec. 80CCD 1(B)
Tax benefits would be applicable as per the Income Tax Act, 1961 as amended from
time to time.
❖ Enrolment-
To enrol in the NPS, applicant needs to submit the Subscriber Registration Form (as
prescribed) to the POP-SP of his/her choice. Applicant can procure the subscriber
registration application form from any of the Point of Presence - Service Providers
(POP-SP) applicant wishes to register with. Alternatively the subscriber registration
forms are available at link of All Citizen Model Forms in Forms Section on our
website
The applicant has to ensure that subscriber registration application form is duly filled
up i.e. photograph, signature, mandatory details, scheme preference details etc and also
submit Know Your Customer (KYC) documentation with respect to proof of identit y
and proof of address. The applicant is advised to read the instructions given at the back
of the form. NRIs should have an account with a bank based in India to open an account
under NPS and also should have a local address. The contributions made by the NRI
would be subject to regulatory requirements as prescribed by RBI from time to time
and FEMA requirements. Once the application form is duly filled in applicant can go
to the nearest POP-SP and submit the PRAN application along with the KYC
documents. PRAN card will be sent to applicant’s correspondence address by CRA.
The list of POP –SP (Service Provider branches) is available on the CRA website
www.npscra.nsdl.co.in and on the website of the concerned POP. To know the nearest
POP-SP branch of your choice applicant may visit https://www.npscra.nsdl.co.in/pop-
sp.php.
After the account is opened, CRA shall mail a “Welcome Kit” containing the

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subscriber’s unique Permanent Retirement Account Number (PRAN) Card and the
complete information provided by the subscriber in the Subscriber Registration form.
This account number will be the primary means of identifying and operating the
account. The applicant will also receive a Telephone Password (TPIN) which can be
used to access an account on the call Centre number (1-800-222080). Applicant will
also be provided an Internet Password (IPIN) for accessing an account on the CRA
Website (www.npscra.nsdl.co.in) on a 24X7 basis.
What are the documents to be submitted along with withdrawal forms?
You have to submit the following documents along with the withdrawal forms:
1. PRAN card (original)
2. Attested copy of proof of identity
3. Attested copy of proof of address
4. A cancelled cheque
❖ Account opening through eNPS Platform:
In addition to the provision of account opening through POP, the subscriber has the
option to open the account online through eNPS platform available on NPS Trust.
On this eNPS platform, account can be opened either through PAN and Bank KYC
verification or through Aadhaar based eKYC verification.
In case of account opened through eKYC verification, the subscriber has option to
eSign the documents. In such case physical documents including subscriber registration
form is not required to be sent to CRA.
Terms and conditions-
The subscriber’s personal information will not be disclosed to a third party (outside
National Pension System (NPS) which includes Annuity Service Providers empanelled

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by PFRDA) without the express or implied consent of the subscriber. The information
may be used internally or for creating awareness (telephonic/written) of new services
of NPS. However, there are some exceptions, viz. disclosure of information under
compulsion of law, where there is a duty to the public to disclose and where interest of
the NPS requires disclosure.
Withdrawal/Exit:
A. Upon attainment of the age of 60 years :
At least 40% of the accumulated pension wealth of the subscriber needs to be utilized
for purchase of annuity providing for monthly pension to the subscriber and balance is
paid as lump sum payment to the subscriber. In case the total accumulated corpus is
less than Rs. 2 Lakhs, the subscriber may opt for 100% lump sum withdrawal.
However, the subscriber has the option to defer the lump sum withdrawal till the age of
70 years. Subscriber has also got the option to continue contributing up to the age of 70
years. This option is required to be exercised up to 15 days prior to completion of 60
years.
B. At any time before attaining the age of 60 years:
The subscriber may exit from NPS before attaining the age of 60 years, only if he has
completed 10years in NPS. At least 80% of the accumulated pension wealth of the
subscriber needs to be utilized for purchase of annuity providing for monthly pension
to the subscriber and the balance is paid as a lump sum payment to the subscriber.
In case the total accumulated corpus is less than Rs. 1 Lakhs, the subscriber may opt
for 100% lump sum withdrawal
C. Death of the subscriber:
In such an unfortunate event, option will be available to the nominee to receive 100%
of the NPS pension wealth in lump sum. However, if the nominee wishes to continue
with the NPS, he/she shall have to subscribe to NPS individually after following due
KYC procedure
Under National Pension System, PFRDA has entrusted the responsibility of receiving,
processing and settlement of all withdrawal claims made to Central Recordkeeping
Agency (CRA) and CRA has created a special NPS claim processing cell (NPSCPC)
for this purpose for handling all types of withdrawal claims. The CRA will monitor the

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performance of NPSCPC on the withdrawal processing as per the instructions provided
by PFRDA in this regard. At present the NPSCPC is fully functional.
 NPS Architecture
The NPS is a sophisticated innovation that is based on the world's best practices in
the pension sector.
1. NPS is based on Personal retirement accounts (PRAs) created for individual
members. NPS accumulates savings into subscriber's PRA while he is working
and use the accumulations at retirement to procure a pension for the rest of his
life.
2. NPS architecture consists of NPS Trust which is entrusted with safeguarding
subscribers interests, a Central Recordkeeping Agency (CRA) which
maintains the data and records, Point of Presence (POP) and aggregators as
collection and distribution arms, competing pension fund managers for
generating and maximizing returns on investments of subscribers, custodian to
take care of the assets purchased by the Fund managers and Trustee bank to
manage the banking operations.
3. NPS has an unbundled Architecture, with inbuilt checks and balances, where
each function is performed by a different entity which is renowned in its area,
to achieve maximum operational efficiency and at a low cost.
4. NSDL is acting as Central Record Keeping agency (CRA) which is associated
with various national level projects for recordkeeping functions.
5. Renowned Financial Institutions covering Public/Private Sector Banks, NBFC,
etc., acting as POPs and Aggregators.
6. Funds are managed by professional Fund Managers from Public & Private
sector with proven track record and as per the PFRDA approved investment
guidelines. At present there are 8 pension fund managers managing the pension
wealth of subscribers. They are:

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 HDFC Pension Management Co. Ltd.
 ICICI Prudential Pension Fund Management Co. Ltd.
 Kotak Mahindra Pension Fund Ltd.
 LIC Pension Fund
 Reliance Capital Pension Fund Ltd.
 SBI Pension Ltd.
 UTI Retirement Solution Pension Fund.
 Pension Fund to be incorporated by Birla Sun life Insurance Co. Ltd
 Axis Bank, function as Trustee Bank
 Stock holding corporation of India ltd, functions as custodian for NPS.

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