**Policy Summary: RBI/2017-18/16**
This Reserve Bank of India (RBI) circular, reference number DNBRPDCC.No. 08703/10.001/2017-18, dated July 06, 2017, addresses Non-Banking Financial Companies (NBFCs) regarding Point of Presence (PoP) services under the Pension Fund Regulatory and Development Authority (PFRDA) for the National Pension System (NPS).
The circular amends previous directions prohibiting NBFCs from undertaking PoP services. It now permits NBFCs with an asset size of ₹500 crore and above, that comply with the prescribed Capital to Risk-Weighted Assets Ratio (CRAR) and have made a net profit in the preceding financial year, to undertake PoP services under PFRDA for NPS, subject to registration with PFRDA.
Eligible NBFCs providing these services must ensure that NPS subscriptions collected from the public are deposited with the Trustee Bank on the same day (T+0 basis) of collection. Deposits must be made into the designated Trustee Bank account opened under PFRDA regulations for NPS. NBFCs are required to strictly adhere to PFRDA guidelines. Violations of these instructions may result in supervisory action, including the revocation of permission to offer PoP services. The circular includes an updated para 111 of the relevant directions.
For further information, contact C.D. Srinivasan, Chief General Manager, Department of Non-Banking Regulation, Central Office, 2nd Floor, Centre I, World Trade Centre, Cuffe Parade, Colaba, Mumbai – 400005, India. Telephone: 91-22-22182526; Fax: 91-22-22162768; Email: cgmdnbrcorbi.org.in.
Key Entities Referenced
Pension Fund Regulatory and Development Authority (PFRDA): Regulatory body in India for overall supervision and regulation of pensions.
National Pension System (NPS): A pension scheme in India regulated by PFRDA.
Point of Presence (PoP): Service points for NPS, where subscribers can register and contribute to the scheme.
Reserve Bank of India (RBI): Central bank of India.
Non-Banking Financial Company (NBFC): A financial institution that provides banking services without meeting the legal definition of a bank.
Non-Banking Financial Company - Systemically Important Non-Deposit taking Company and Deposit taking Company Reserve Bank Directions, 2016: A set of directions issued by the Reserve Bank of India pertaining to NBFCs.
C.D. Srinivasan: Chief General Manager at Reserve Bank of India.
Mumbai, Maharashtra: City in India where the Central Office of Department of Non-Banking Regulation of RBI is located.
RBI/2017-18/16
DNBR(PD)CC.No.087/03.10.001/2017-18 July 06, 2017
All NBFCs
Madam/ Sir,
Point of Presence (PoP) Services under Pension Fund Regulatory and
Development Authority (PFRDA) for National Pension System (NPS)
Please refer to Para 111 of Non-Banking Financial Company – Systemically
Important Non-Deposit taking Company and Deposit taking Company (Reserve
Bank) Directions, 2016 prohibiting NBFCs from undertaking PoP Services under the
PFRDA for NPS.
2. On a review, it has been decided that NBFCs with asset size of ₹ 500 crore and
above which comply with the prescribed CRAR and made net profit in the preceding
financial year be permitted to undertake PoP services under PFRDA for NPS after
registration with PFRDA. Eligible NBFCs extending such services shall ensure that
the NPS subscription collected by them from the public is deposited on the day of
collection itself (T+0 basis; T is the date of receipt of clear funds, either by cash or
any other mode) with the Trustee Bank. The deposits shall be made in the Trustee
Bank account opened for this purpose under the regulations framed by PFRDA for
NPS. NBFCs conducting PoP services shall strictly adhere to the guidelines framed
by PFRDA. Any violation of the instructions above would invite supervisory action,
including but not limited to cancellation of permission to undertake PoP services.
3. The updated para 111 of the above referred Directions is enclosed.
Yours faithfully
(C.D. Srinivasan)
Chief General Manager
Encl.: As above
गैर ब��कंग �व�नयमन �वभाग ,केन्द्र�य कायार्लय, 2र� मंिजल ,सेक्टर 1, �वश्व व्यापार क�द्र, कफ परेड, मुंबई-400005, भारत
Department of Non-Banking Regulation, Central Office, 2nd Floor, Centre-I, World Trade Centre, Cuffe Parade, Colaba, Mumbai – 400005, India
Tel.: (+91-22) 22182526 Fax: (91-22) 22162768, Email: cgmdnbrco@rbi.org.in
�हदं � आसान है, इसका प्रयोग बढाइये।