**Executive Summary**
This circular, dated December 15th, 2025, from the Pension Fund Regulatory and Development Authority (PFRDA), outlines an incentive structure for Points of Presence (PoPs) related to NPS enrollments facilitated through Farmer Producer Organizations (FPOs). The incentive framework is applicable until March 31st, 2027, and will be reviewed thereafter.
**Key Points / Main Content**
* **Incentive Framework:** A new incentive framework is established to encourage PoPs to engage with FPOs in expanding NPS coverage in the Agriculture and allied sector.
* **Incentive Amount:** PoPs are eligible for an incentive of ₹100 per subscriber for each new NPS enrollment facilitated through FPOs. This is in addition to the existing PoP charge structure.
* **Eligibility Criteria:** The incentive applies to the enrolment of new individual subscribers by the PoPs through FPOs as Pension Agents.
* **Conditions:** The incentive is contingent upon the receipt of the initial contribution amount and the minimum annual contribution, as prescribed by PFRDA from time to time.
* **Validity:** This incentive framework is applicable until March 31st, 2027, and will be reviewed thereafter.
**Impact Analysis**
**PoPs under NPS**
* **Impact:** Opportunity to earn additional income through incentives for facilitating NPS enrollments via FPOs, especially in rural areas, which aims to compensate for higher outreach costs.
* **Action Required:** Actively engage with FPOs to expand NPS coverage among farmers and ensure compliance with PFRDA guidelines regarding contribution amounts.
Key Entities Referenced
Pension Fund Regulatory and Development Authority (PFRDA): The primary regulatory body issuing the circular and responsible for overseeing the National Pension System (NPS).
National Pension System (NPS): The pension scheme to which the incentive structure applies.
Farmer Producer Organizations (FPOs): Organizations through which NPS enrollment is being facilitated, targeted by the incentive scheme.
Points of Presence (PoPs): Entities eligible for the incentive for facilitating NPS enrollment through FPOs.
Section 14 of the Pension Fund Regulatory and Development Authority Act, 2013: The legal basis cited for the circular's issuance, granting PFRDA the necessary authority.
CIRCULAR
PFRDA/2025/23/NPS-AGRI/01 Date: 15th December, 2025
To
All PoPs under NPS
Subject: Incentive structure to PoPs for NPS enrollment facilitated through Farmer
Producer Organizations (FPOs).
The Agriculture and Allied Activities sector has long been the backbone of the Indian
economy, playing a vital role in national income and employment. This sector contributes
approximately 18% of the country’s GDP for FY23- 24 and supports about 42% of the
population. Lately, Farmer-Producer Organizations (FPOs) have emerged as key entities,
enabling small and marginal farmers to pool resources, reduce costs, access markets,
adopt technology, and secure affordable credit. FPOs are being integrated with digital
platforms like e-NAM, ONDC and GeM to enhance market access.
Recently, in order to enhance pension distribution network and for providing last-mile
connectivity, particularly in areas with limited awareness and access, PFRDA vide its
circular dated 23.09.2025 has allowed Farmers Producers Organizations (FPOs) (which
are registered with Ministry of Corporate Affairs (MCA)) for their engagement as Pension
Agent, for distribution of Pension Scheme. Currently, there are over 45,000 FPOs registered
in India.
Incentive Framework to PoPs for NPS enrollment facilitated through Farmer Producer
Organizations (FPOs).
To promote and encourage initial adoption, an incentive of ₹100 per subscriber is
proposed to be paid to PoPs for each NPS enrollment facilitated through Farmer
Producer Organizations (FPOs). This incentive, in addition to the existing PoP charge
structure, is intended to compensate for higher outreach costs and motivate PoPs to
actively engage with FPOs in expanding NPS coverage in Agriculture and allied sector,
especially in rural areas. The Incentive Framework is as under:
Type of Eligibility Criteria Conditions Rate
Incentive
Registration/Act Enrolment of • Receipt of Initial Upto ₹100
ivation Incentive new individual contribution amount as per capita
to PoPs, for each subscribers by the prescribed by PFRDA time
NPS enrollment PoPs through to time.
facilitated FPOs as Pension • Receipt of minimum
through FPOs. Agent annual contribution** as
prescribed by PFRDA time
to time.
ई – 500, टावर – ई, पाचवाां तल, वर्ल्ड टरेड सेंटर, नौरोजी नगर, नई दिल्ली – 110 029
िूरभाष: 91 – 11 – 40717900, वेबसाइट: www.pfrda.org.in
E – 500, Tower – E, Fifth Floor, World Trade Center, Nauroji Nagar, New Delhi – 110 029
Phone: 91 – 11 – 40717900, Website: www.pfrda.org.inThe incentive framework for PoPs is applicable for NPS enrollment facilitated through Farmer
Producer Organizations (FPOs) till 31st March 2027 and this framework would be reviewed
thereafter.
This circular is being issued in exercise of the powers conferred under Section 14 of the
Pension Fund Regulatory and Development Authority Act, 2013.
Ashish Kumar
Chief General Manager