## Report on Pension Fund Regulatory and Development Authority Central Recordkeeping Agency Amendment Regulations, 2021
**1. Executive Summary:**
This report analyzes the Pension Fund Regulatory and Development Authority (PFRDA) Central Recordkeeping Agency (CRA) Amendment Regulations, 2021. This amendment aims to modify the existing CRA regulations of 2015, focusing on areas such as certificate validity, service level agreements, service levels specified by the Authority, transfer processes, inspections and audits, and the definition of a qualified auditor. The key findings indicate a strengthening of regulatory oversight and a clarification of standards for CRAs.
**2. Introduction:**
This report provides a detailed overview of the PFRDA Central Recordkeeping Agency Amendment Regulations, 2021, based solely on the text provided. The purpose is to inform the industry about the specific changes introduced by this amendment and their potential impact on CRAs.
**3. Policy Overview:**
* This is an amendment to the Pension Fund Regulatory and Development Authority Central Recordkeeping Agency Regulations, 2015.
* Core Objective(s) (inferred): To strengthen regulatory oversight of Central Recordkeeping Agencies (CRAs) and ensure better service delivery through amendments to regulations concerning registration validity, service level agreements, operational standards, data transfer processes, inspection protocols, and auditor qualifications.
**4. Background and Rationale:**
The rationale for this amendment likely stems from the need to refine and update the existing CRA regulations to address evolving operational challenges and ensure compliance with the Pension Fund Regulatory and Development Authority Act, 2013. The specific amendments suggest a focus on enhancing the robustness and accountability of CRAs in maintaining records and providing services within the National Pension System (NPS). The changes may be a response to observed issues in service delivery, data management, or compliance procedures under the original 2015 regulations, as well as alignment with amendments made in 2018 and 2020.
**5. Key Provisions / Changes:**
The following summarizes the key changes introduced by the 2021 Amendment:
* **I. Regulation 15 (Subregulation 1): Certificate of Registration Validity:**
* **Original Policy:** (Not Provided, but Implied) Impliedly, the original regulation specifies the conditions for the validity of CRA registration.
* **New Rule:** The certificate of registration remains valid unless suspended or cancelled by the Authority, or surrendered by the CRA for just cause. In the event of cancellation, the Authority must provide instructions regarding the disposal or transfer of information and regulated assets at least thirty days before cancellation.
* **Effect of Change:** Clarifies and strengthens the conditions for certificate validity and introduces a formal process for the disposal or transfer of assets in case of cancellation, protecting the interests of stakeholders.
* **II. Regulation 18 (Subregulation 2): Service Level Agreements:**
* **Original Policy:** (Not Provided, but Implied) Impliedly, there existed a requirement related to service level agreements.
* **New Rule:** CRAs must comply with service level agreements with intermediaries or stakeholders as specified by the Authority.
* **Effect of Change:** Reinforces the importance of service level agreements and emphasizes compliance with the Authority's specifications, aiming to improve service quality and accountability.
* **III. Regulation 21 (Para 2): Service Levels Specified by the Authority:**
* **Original Policy:** (Not Provided, but Implied) The original regulation likely outlines the need to adhere to service levels.
* **New Rule:** CRAs must strictly adhere to all service levels specified by the Authority under the following categories: (i) service operations and maintenance for each stakeholder under the National Pension System; (ii) performance requirements with respect to application, architecture and technology platform, network, hardware and human resources and other like things as may be specified by the Authority.
* **Effect of Change:** Provides a more granular description of the service levels that CRAs must adhere to, encompassing operational and technical aspects, thereby ensuring better performance and reliability.
* **IV. Regulation 23 (Subregulation a): Transfer Process:**
* **Original Policy:** (Not Provided, but Implied) It appears there was a provision concerning the transfer process.
* **New Rule:** Requires a detailed program of the transfer process, including details of the means to ensure continuing provision of the services throughout the transfer process or until the cessation of the services and of the management structure during the transfer.
* **Effect of Change:** Ensures the continuity of services during the transfer process and clarifies the necessary components of a transfer program.
* **V. Regulation 26 (Subregulation 1): Inspection and Audit:**
* **Original Policy:** (Not Provided, but Implied) The original regulation already allowed for inspection and audit by the Authority.
* **New Rule:** The Authority may, at least once a year and as decided by the Authority, undertake directly or through its authorized representative or auditor an inspection and audit of the books, accounts, records including the telephone records and electronic records and documents of the central recordkeeping agency for any purpose, including the purposes as specified under this regulation.
* **Effect of Change:** Specifies a minimum frequency (at least once a year) for inspection and audit and explicitly includes telephone and electronic records, thus broadening the scope and potentially increasing the stringency of the audits.
* **VI. Regulation 26 (Subregulation 3b): Qualified Auditor Definition:**
* **Original Policy:** (Not Provided, but Implied) Provided a different or less clear definition.
* **New Rule:** For the purposes of this subregulation, the expression qualified auditor shall have the meaning derived from section 226 of the Companies Act, 1956 1 of 1956 or Section 139 of the Companies Act, 2013.
* **Effect of Change:** Aligns the definition of "qualified auditor" with the Companies Act, providing clarity and consistency in auditor qualifications.
* **VII. Regulation 31:**
* **Original Policy:** (Not Provided)
* **New Rule:** Regulation 31 shall be omitted.
* **Effect of Change:** Removes Regulation 31. Without the content of Regulation 31, it's impossible to analyze its impact.
**6. Target Audience and Stakeholders:**
The primary target audience and stakeholders are:
* Central Recordkeeping Agencies (CRAs) operating under the PFRDA.
* Intermediaries and stakeholders involved in the National Pension System (NPS).
* Pension Fund Regulatory and Development Authority (PFRDA) itself.
* Subscribers to the National Pension System (indirectly, through improved CRA performance).
**7. Implementation Aspects (Inferred):**
* **Responsible Agency/Bodies:** The Pension Fund Regulatory and Development Authority (PFRDA) is the responsible body for implementing and enforcing these regulations.
* **Timelines:** The regulations come into force on the date of their publication in the official gazette (June 14, 2021). CRAs are expected to comply with the amended regulations immediately upon their enactment.
* **Procedures:** CRAs will need to update their operational procedures, service level agreements, data management practices, and internal controls to align with the amended regulations.
**8. Expected Outcomes / Impact of Changes:**
The likely intended outcomes of these changes are:
* Enhanced accountability and transparency of CRAs.
* Improved service quality and operational efficiency within the NPS.
* Greater protection of stakeholder interests through robust data management and transfer processes.
* Strengthened regulatory oversight and compliance by the PFRDA.
* Greater alignment with the statutory definitions and reporting requirements.
**9. Conclusion:**
The PFRDA Central Recordkeeping Agency Amendment Regulations, 2021 represent a significant update to the regulatory framework governing CRAs in India. These amendments aim to strengthen regulatory oversight, improve service delivery, and enhance the overall operational efficiency of the National Pension System. The changes emphasize the importance of compliance with service level agreements, robust data management practices, and clear auditor qualifications. These amendments are expected to have a positive impact on the performance and reliability of CRAs, ultimately benefiting subscribers to the NPS.
Key Entities Referenced
Pension Fund Regulatory and Development Authority: A regulatory body established in India to promote and regulate pension schemes.
Pension Fund Regulatory and Development Authority Act, 2013: The Act of Indian Parliament that established the Pension Fund Regulatory and Development Authority.
Pension Fund Regulatory and Development Authority Central Recordkeeping Agency Regulations, 2015: Regulations pertaining to the Central Recordkeeping Agency as defined by the Pension Fund Regulatory and Development Authority.
Pension Fund Regulatory and Development Authority Central Recordkeeping Agency Amendment Regulations, 2021: Amendments made in 2021 to the Pension Fund Regulatory and Development Authority Central Recordkeeping Agency Regulations, 2015.
National Pension System: A pension system in India regulated by PFRDA.
Companies Act, 1956: An Act of the Indian Parliament relating to companies.
Companies Act, 2013: An Act of the Indian Parliament relating to companies.
SUPRATIM BANDYOPADHYAY: Chairperson of the Pension Fund Regulatory and Development Authority.
New Delhi: The location of the Pension Fund Regulatory and Development Authority notification, New Delhi, Delhi, India.
Central Recordkeeping Agency: An agency responsible for maintaining records related to the National Pension System.
Gazette of India: Official journal of the government of India.
Government of India Press, Ring Road, Mayapuri, New Delhi110064: The government press that uploaded the document.
Controller of Publications, Delhi110054: The controller of publications.
रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
सी.जी.-डी.एल.-अ.-14062021-227592
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असाधारण
EXTRAORDINARY
भाग III—खण् ड 4
PART III—Section 4
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
स.ं 237] नई दिल्ली, सोमिार, िनू 14, 2021/ज्य ष्े ठ 24, 1943
No. 237] NEW DELHI, MONDAY, JUNE 14, 2021/JYAISHTHA 24, 1943
पिें न जनजध जिजनयामक और जिकास प्राजधकरण
अजधसचू ना
नई दिल्ली, 14 िून, 2021
पिें न जनजध जिजनयामक और जिकास प्राजधकरण (केंद्रीय अजभलखे ापाल अजभकरण) (सिं ोधन) जिजनयम, 2021
स.ंपीएफआरडीए /12/आरिीएल/139/7.—पेंिन जनजध जिजनयामक और जिकास प्राजधकरण पेंिन जनजध
जिजनयामक और जिकास प्राजधकरण अजधजनयम 2013 (2013 का 23) की धारा 52 की उपधारा (2) के खंड (ङ), खंड
(ञ), खंड (ट), खंड (ठ), खंड (ढ) खंड (ण) और खडं (त) के साथ पठठत उसकी उप-धारा (1) द्वारा प्रित्त िजियों का प्रयोग
करते हुए, पेंिन जनजध जिजनयामक तथा जिकास प्राजधकरण एति ् द्वारा पेंिन जनजध जिजनयामक तथा जिकास प्राजधकरण
(केंद्रीय अजभलेखापाल अजभकरण) जिजनयम, 2015 में संिोधन करते हुए जनम्न जिजनयम बनाता ह ै I नामतः -
1. इन जिजनयमों का नाम पेंिन जनजध जिजनयामक और जिकास प्राजधकरण (केंद्रीय अजभलखे ापाल अजभकरण) (संिोधन)
जिजनयम, 2021 ह ैI
2. यह जिजनयम िासकीय रािपत्र में उनके प्रकािन की जतजथ से प्रिृत्त होंगे I
3. पेंिन जनजध जिजनयामक तथा जिकास प्राजधकरण (केंद्रीय अजभलेखापाल अजभकरण) जिजनयम 2015 में:-
(I) जिजनयम 15 का उप-जिजनयम (1) जनम्नानुसार प्रजतस्ट्थाजपत दकया िाएगा -
अजधजनयम, जनयमों और जिजनयमों के उपबंधों के अनुपालन के अधीन रहत े हुए, केंद्रीय अजभलेखपाल अजभकरण
को अनुित्त, रजिस्ट्रीकरण जिजधमान्य बना रहगे ा, िब तक दक उसे प्राजधकरण द्वारा जनलंजबत या रद्द न कर दिया
3203 GI/2021 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4]
िाए, या ऐसी केंद्रीय अजभलेखपाल अजभकरण द्वारा अभ्यर्पित करन े के जलए अनुज्ञप्त कर दिया िाए I
रजिस्ट्रीकरण रद्द कर दिए िान े की ििा में, प्राजधकरण रद्दकरण की तारीख से कम से कम तीस दिन पूिि केंद्रीय
अजभलेखपाल अजभकरण को सूचना के और उसके धाठरत जिजनयजमत आजस्ट्तयों के व्ययन या अंतरण के बारे म ें
अनुिेि िगे ा I
(II) जिजनयम 18 का उप-जिजनयम (2) (ण) जनम्नानुसार प्रजतस्ट्थाजपत दकया िाएगा -
अन्य मध्यिर्तियों या पणधाठरयों के साथ िैस े प्राजधकरण द्वारा जिजनर्िष्टि दकए िाएं, सेिा स्ट्तरीय करारों का
अनुपालन करना ;
(III) जिजनयम 21 का अनुच्छेि 2 जनम्नानुसार प्रजतस्ट्थाजपत दकया िाएगा -
केंद्रीय अजभलेखपाल अजभकरण के प्राजधकरण द्वारा जिजनर्िष्टि यथा अपेजित सभी सेिा स्ट्तरों का जनम्नजलजखत
प्रिगों के अधीन कडाई स ेपालन करना अपेजित होगा, अथाित ्:–
(i) राष्ट्रीय पेंिन प्रणाली के अधीन प्रत्येक पणधारी के जलए सेिा पठरचालन और अनुरिण;
(ii) एप्लीकेिन, संरचना और प्रौद्योजगकी प्लेटफाम,ि नेटिकि, हाडििेयर और मानि संसाधन या िैसी अन्य
चीज़ों के सम्बंध में, िो प्राजधकरण द्वारा जिजनर्िष्टि की िाएं, कायिपालन अपेिाएं I
(IV) जिजनयम 23 का उप-जिजनयम (क) जनम्नानुसार प्रजतस्ट्थाजपत दकया िाएगा –
ऐसी अंतरण प्रदिया का जिस्ट्तृत कायििम, जिसके अंतगति अतं रण की परू ी प्रदिया या सेिाओं के बंि होने तक
सेिाओं का सतत ् उपबंध सुजनजित करने के जलए प्रयोग दकए िाने िाले उपायों का तथा अतं रण के िौरान प्रबंधन
संरचना का ब्यौरा भी ह ै;
(V) जिजनयम 26 का उप-जिजनयम (1) जनम्नानुसार प्रजतस्ट्थाजपत दकया िाएगा -
प्राजधकरण, िर्ि म ें कम स े कम एक बार और िैसा प्राजधकरण द्वारा जनधािठरत दकया िाए, प्रत्यि रूप स े या अपन े
दकसी प्राजधकृत प्रजतजनजध या सम्परीिक के माध्यम स े दकसी प्रयोिन के जलए, जिसके अंतगित इस जिजनयम के
अधीन यथाजिजनर्िष्टि प्रयोिन भी ह,ैं केंद्रीय अजभलेखपाल अजभकरण की लेखा बजहयों, लेखाओं, अजभलेखों, जिसके
अंतगति टेलीफोन के अजभलेख और इलैक्ट्राजनक अजभलेख भी हैं, और िस्ट्तािेज़ों का जनरीिण और संपरीिा कर
सकेगा I
(VI) जिजनयम 26 के उप-जिजनयम 3(ख) के तहत प्रिान स्ट्पष्टीकरण को जनम्न स्ट्पष्टीकरण से प्रजतस्ट्थाजपत दकया
िाएगा –
स्ट्पष्टीकरण- इस उपजिजनयम के प्रयोिनों के जलए, ‘अहकि संपरीिक’ का िही अथि होगा िो कंपनी अजधजनयम,
1956 (1956 का 1) की धारा 226 या कंपनी अजधजनयम, 2013 की धारा 139 म ें उसका ह ै;
(VII) जिजनयम 31 का लोप कर दिया िाएगा I
सुप्रजतम बंिोपाध्याय, अध्यि
[जिज्ञापन-III/4/असा./103/2021-22]
पािलेख:
1. मूल जिजनयम, पेंिन जनजध जिजनयामक तथा जिकास प्राजधकरण (केंद्रीय अजभलेखापाल अजभकरण) जिजनयम,
2015, भारत के रािपत्र म ें 27 अप्रैल 2015 को, अजधसूचना सं.पीएफआरडीए/12/आरिीएल/139/7 के माध्यम
से प्रकाजित दकये गए थे I
2. पेंिन जनजध जिजनयामक तथा जिकास प्राजधकरण (केंद्रीय अजभलेखापाल अजभकरण) (प्रथम संिोधन) जिजनयम,
2018, भारत के रािपत्र म ें 25 िून 2018 को, अजधसूचना सं.पीएफआरडीए/12/आरिीएल/139/7 के माध्यम
से प्रकाजित दकये गए थे I
3. पेंिन जनजध जिजनयामक तथा जिकास प्राजधकरण (केंद्रीय अजभलेखापाल अजभकरण) (िसू रा संिोधन) जिजनयम,
2020, भारत के रािपत्र म ें 29 िुलाई 2020 को, अजधसूचना सं.पीएफआरडीए/12/आरिीएल/139/7 के
माध्यम से प्रकाजित दकये गए थे I[भाग III—खण् ड 4] भारत का रािपत्र : असाधारण 3
PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY
NOTIFICATION
New Delhi, the 14th June, 2021.
PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY (CENTRAL
RECORDKEEPING AGENCY) (AMENDMENT) REGULATIONS, 2021
No.PFRDA/12/RGL/139/7.—In exercise of the powers conferred by sub-section (1) of Section 52 read with
clauses (e),(j), (k), (l), (n), (o) and (p) of sub-section (2) of the Pension Fund Regulatory and Development Authority
Act, 2013 (23 of 2013), the Pension Fund Regulatory and Development Authority hereby makes the following
regulations to amend the Pension Fund Regulatory and Development Authority(Central Recordkeeping Agency)
Regulations, 2015 namely,: ─
1. These regulations may be called the Pension Fund Regulatory and Development Authority (Central Recordkeeping
Agency) (Amendment) Regulations, 2021.
2. These shall come into force on the date of their publication in the official gazette.
3. In the Pension Fund Regulatory and Development Authority (Central Recordkeeping Agency) Regulations, 2015:-
(I). Sub-regulation (1) of regulation 15 shall be substituted as below-
Subject to compliance with the provisions of the Act, the rules and regulations, the certificate of registration,
granted to a central recordkeeping agency shall remain valid, unless suspended or cancelled by the Authority,
or permitted to be surrendered by such central recordkeeping agency, for just cause to be shown. In the
event of cancellation, the Authority, shall at least thirty days before the date of cancellation, deliver to the
central recordkeeping agency, instructions as to the disposal or transfer of the information and regulated
assets held by it.
(II). Sub-regulation (2) (o) of regulation 18 shall be substituted as below-
comply with the service level agreements with the intermediaries or stakeholders as may be specified by the
Authority;
(III). Para 2 of regulation 21 shall be substituted as below-
The central recordkeeping agency shall be required to strictly adhere to all the service levels specified by the
Authority under the following categories, namely: -
(i) service operations and maintenance for each stakeholder under the National Pension System;
(ii) performance requirements with respect to application, architecture and technology platform, network,
hardware and human resources and other like things as may be specified by the Authority.
(IV). Sub-regulation (a) of regulation 23 shall be substituted as below-
a detailed program of the transfer process including details of the means to be used to ensure continuing
provision of the services throughout the transfer process or until the cessation of the services and of the
management structure during the transfer;
(V). Sub-regulation (1) of regulation 26 shall be substituted as below-
The Authority may, atleast once in a year and as decided by the Authority, undertake directly or through its
authorized representative or auditor an inspection and audit of the books, accounts, records including the
telephone records and electronic records and documents of the central recordkeeping agency for any purpose,
including the purposes as specified under this regulation.
(VI). Explanation given under sub-regulation 3(b) of regulation 26 shall be substituted as below-
Explanation. - For the purposes of this sub-regulation, the expression “qualified auditor” shall have the
meaning derived from section 226 of the Companies Act, 1956 (1 of 1956) or Section 139 of the Companies
Act, 2013.
(VII). Regulation 31 shall be omitted.
SUPRATIM BANDYOPADHYAY, Chairperson
[ADVT.-III/4/Exty./103/2021-22]4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4]
1. The Principal Regulations, The Pension Fund Regulatory and Development Authority (Central Recordkeeping
Agency) Regulations, 2015 were published in the Gazette of India on 27th April, 2015 vide notification No.
PFRDA/12/ RGL/139/7.
2. The Principal Regulations, The Pension Fund Regulatory and Development Authority (Central Recordkeeping
Agency) (First Amendment) Regulations, 2018 were published in the Gazette of India on 25th June, 2018 vide
notification No. PFRDA/12/ RGL/139/7.
3. The Principal Regulations, The Pension Fund Regulatory and Development Authority (Central Recordkeeping
Agency) (Second Amendment) Regulations, 2020 were published in the Gazette of India on 29th July, 2020 vide
notification No. PFRDA/12/ RGL/139/7.
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.