Architecture - National Pension System (NPS) - Open NPS Account Online

National Pension System – Architecture

The National Pension System introduced by the Government of India is South Asia’s first Defined Contribution pension scheme with individual retirement accounts, product choices, professional fund management by competing fund managers and portability through centralized record keeping and administration.

Regulator

Pension Fund Regulatory & Development authority (PFRDA) is the Regulator appointed by the Government of India to regulate and develop the pension sector.
Based in New Delhi

NPS Trust

Regulator has created a Trust ( NPS Trust) to oversee and review the investment of the pension corpus.
Shri Ashvin Parekh is the chairman of the Trust.
Other trustees include:
- Shri Atanu Sen
- Shri Dinesh Kumar Mehrotra
- Shri Sanjeev Chanana
- Shri Radhakrishnan Nair

Pension Fund Manager

Government Sector – Central and State Government Employees

Following Pension Fund Managers have been appointed from a pool of competing Fund Managers to professionally manage the Pension Funds to manage the Central Govt. pension corpus under NPS:
- SBI Pension Funds Pvt. Ltd.
- LIC Pension Fund Ltd.
- UTI Retirement Solutions Ltd.

Private Sector – All Citizens and Corporate Entities

SBI Pension Funds P Ltd, Largest Pension Fund Manager out of 11.
- - Rs 4,33,384.61 crores of Asset under Management( AUM) with around 36% Market Share as on 31st March,2024.
Manages 44% of Market share of AUMs under Private Sector.
Adjudged winner in the Pension Fund House Category for the year 2019 by Outlook Money. Awards by Outlook Money was adjudged to the Company for third consecutive year in a row.

CRA: Central Record Keeping Agency

NSDL,CAMS and K-fintech

Each subscriber will be given a unique PRAN number ( Permanent Retirement Account Number)
Complete portability is ensured.
NAV will be declared on a daily basis & will be put on Protean(NSDL) ,CAMS and K-Fintech website.
Access to subscribers with User ID & PIN to view their contribution & NAV.
Grievance redressal system through online log in facility and escalation procedure for resolution.

Trustee Bank: Axis Bank

All Fund Managers have A/C with Axis Bank.
DDOs/PAOs remit funds through Axis Bank Branches.
PoP-SPs will remit the funds to Axis Bank
Aggregation at Axis Bank.
Where Axis Bank branches are not available, SBI branches services availed.

Custodian:Deutsche Bank(DB) is appointed as the custodian

They keep the custody of the assets.
All the assets are held in the name of the Trust.

Points of Presence

The regulator appoints organizations to act as Point of Presence.
These Point of Presence have designated their identified branches to act as PoP-Service Provider (POP-SP), who will be acting as intermediary between the subscriber and NPS.
POP-SP shall perform the functions relating to NPS account opening, undertaking Know Your Customer (KYC) verification, receiving contributions & instructions from subscribers and transmission of the same to designated intermediaries.