India’s pensions regulator introduces new categorisation and standardised presentation rules for the National Pension System, enhancing transparency and comparison for investors amid ongoing reforms and cost reductions.
India’s pensions regulator has moved to make the National Pension System easier to compare by recasting schemes into five clear risk-and-equity buckets and standardising how providers present key data. The Pension Fund Regulatory and Development Authority wants investors to see, in one place, how much of a scheme is invested in equities, alongside risk, returns, fees and benchmark performance, so they can judge products on more than headline gains alone. It is a notable push towards greater transparency in a retirement market where product labels have not always made comparisons straightforward.
Under the framework released on 28 August 2026, schemes will be grouped by equity exposure: Category A for 80% to 100% equity and very high risk; Category B for 60% to 80% equity and high risk; Category C for 35% to 60% equity and medium risk; Category D for 10% to 35% equity and relatively low risk; and Category E for 0% to 10% equity, or debt-led investing. According to the regulator’s circular, each scheme must sit in only one category, rather than straddling two bands, a change intended to make comparison simpler for savers.
The new rules also require pension platforms to display scheme details in a fixed sequence, starting with the scheme type and category, then the fund manager, launch date, historical returns, benchmark, benchmark returns, charges, risk rating and assets under management. That matters because higher returns can mask higher volatility, and the regulator’s message is that investors should look at risk and benchmark performance, not just the best recent numbers. The changes are aimed mainly at the presentation and classification of schemes, while government-linked accounts are excluded from the new categorisation rules, according to the report by Aaj Tak.
Separately, from 1 October 2026, anyone opening a new NPS account through a point of presence will face a one-time registration fee of ₹200 for each Permanent Retirement Account Number. The fee will not be collected in one lump sum; central record-keeping agencies will recover it at ₹50 a quarter by cancelling units, and the amount will then be passed on to the point of presence in the month after the quarter in which the account-opening process is completed. Earlier changes this year also reduced NPS charges and allowed banks to set up pension funds, according to Aaj Tak, while other recent rule shifts have expanded withdrawal flexibility for private-sector workers and allowed partial withdrawals in some cases. Together, those moves suggest the system is being nudged towards broader access, clearer pricing and more user-friendly rules.
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