Key Takeaways
- • PFRDA has removed category codes (A, B, C, D, E) from Multiple Scheme Framework (MSF) scheme names under National Pension System (NPS) rules, while requiring pension funds to disclose the growth category and risk level alongside the scheme name.
- • Scheme names must now follow a three-part format: the pension fund's abbreviation, the identifier 'NPS', and a unique scheme name, for example 'XYZ NPS Retirement Scheme'.
- • Point of presence (PoP) platforms must generally show schemes from all pension funds within the category a subscriber selects, rather than a limited set of funds.
- • All intermediaries must implement the changes by December 1, 2026, under a circular dated November 2 that amends the framework introduced on August 28.
Summary
The Pension Fund Regulatory and Development Authority (PFRDA) has revised how schemes under the National Pension System (NPS) are named and displayed, with the stated aim of making it easier for subscribers to compare investment options before choosing a scheme, according to the original Business Standard report. The amendments were issued through a circular dated November 2, modifying the framework introduced on August 28. All intermediaries must implement the changes by December 1, 2026.
Under the earlier framework, Multiple Scheme Framework (MSF) scheme names had to include the pension fund's abbreviation, the NPS identifier, the category code and the scheme name. The revised framework removes the category code. Scheme names now consist of the pension fund's abbreviation, the common identifier 'NPS', and a unique scheme name. PFRDA has said scheme names should be "simple, distinctive and easy to recall." Where a pension fund offers multiple schemes in the same category, each must carry a different name. Tier I is the default offering and needs no suffix, while the words "Tier II" must be added to the end of relevant scheme names.
The removal of category codes does not reduce disclosure on risk. Pension funds must display the full applicable scheme or growth category alongside the scheme name in public-facing material, including advertisements, media, brochures and awareness material, in a smaller font directly below or beside the name. The category must also be stated clearly in the NPS Scheme Essentials Document and scheme brochure where applicable. For example, a scheme could carry the description "Aggressive Growth – Very High Risk" beneath its name. PFRDA's position is that subscribers should not rely on a scheme's name alone to understand its investment risk.
The rules governing PoP platforms have also been tightened. A PoP operating its own platform must display schemes from all pension funds within the category a subscriber selects; if a subscriber chooses "Balanced Growth – Medium Risk," for instance, the platform must show every pension fund's products in that category. PoPs may still give prominence to a particular fund by placing its schemes first or pre-selecting one, provided schemes from all other funds in the category remain visible. An exception applies where a subscriber specifically chooses to access a pension fund's own website or application, and that fund, which also holds a PoP licence, runs the onboarding process itself; in that case only its own schemes may be displayed.
The framework also sets requirements for NPS Central and Central Recordkeeping Agency (CRA) platforms. Their standardised navigation, including any interim redirection journey, must display schemes from all pension funds within the selected category. PFRDA has clarified that the Star NPS platform used by pension funds may display their schemes to the pension agents appointed by them. The subscriber-facing process must first capture the subscriber's choice of scheme type, category or risk appetite before showing corresponding schemes.
PFRDA has directed CRAs, pension funds and PoPs to update scheme names, brochures, Scheme Essentials Documents, advertising, websites, applications and onboarding journeys within the December 1, 2026 deadline. The changes are primarily intended to improve how investment choices are presented, and the regulator's guidance is that subscribers should still review each scheme's growth category, risk level and investment details rather than choosing a pension fund based on its name or platform position.
Under the earlier framework, Multiple Scheme Framework (MSF) scheme names had to include the pension fund's abbreviation, the NPS identifier, the category code and the scheme name. The revised framework removes the category code. Scheme names now consist of the pension fund's abbreviation, the common identifier 'NPS', and a unique scheme name. PFRDA has said scheme names should be "simple, distinctive and easy to recall." Where a pension fund offers multiple schemes in the same category, each must carry a different name. Tier I is the default offering and needs no suffix, while the words "Tier II" must be added to the end of relevant scheme names.
The removal of category codes does not reduce disclosure on risk. Pension funds must display the full applicable scheme or growth category alongside the scheme name in public-facing material, including advertisements, media, brochures and awareness material, in a smaller font directly below or beside the name. The category must also be stated clearly in the NPS Scheme Essentials Document and scheme brochure where applicable. For example, a scheme could carry the description "Aggressive Growth – Very High Risk" beneath its name. PFRDA's position is that subscribers should not rely on a scheme's name alone to understand its investment risk.
The rules governing PoP platforms have also been tightened. A PoP operating its own platform must display schemes from all pension funds within the category a subscriber selects; if a subscriber chooses "Balanced Growth – Medium Risk," for instance, the platform must show every pension fund's products in that category. PoPs may still give prominence to a particular fund by placing its schemes first or pre-selecting one, provided schemes from all other funds in the category remain visible. An exception applies where a subscriber specifically chooses to access a pension fund's own website or application, and that fund, which also holds a PoP licence, runs the onboarding process itself; in that case only its own schemes may be displayed.
The framework also sets requirements for NPS Central and Central Recordkeeping Agency (CRA) platforms. Their standardised navigation, including any interim redirection journey, must display schemes from all pension funds within the selected category. PFRDA has clarified that the Star NPS platform used by pension funds may display their schemes to the pension agents appointed by them. The subscriber-facing process must first capture the subscriber's choice of scheme type, category or risk appetite before showing corresponding schemes.
PFRDA has directed CRAs, pension funds and PoPs to update scheme names, brochures, Scheme Essentials Documents, advertising, websites, applications and onboarding journeys within the December 1, 2026 deadline. The changes are primarily intended to improve how investment choices are presented, and the regulator's guidance is that subscribers should still review each scheme's growth category, risk level and investment details rather than choosing a pension fund based on its name or platform position.
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