The Pension Fund Regulatory and Development Authority (PFRDA) on December 19, 2023, issued a circular regarding Pension Fund Regulatory and Development Authority (Framework for Prevention and Reporting of Fraud Under NPS Architecture) Guidelines, 2023.
The following has been stated: -
•The guidelines are issued under section 14 of the Pension Fund Regulatory and Development Authority Act 2013.
•These guidelines are to be construed and acted upon, together with any other guidelines on fraud prevention, as may be applicable in the organization or which it is obliged to follow.
•The objective of the "Framework for Prevention and Reporting of Fraud Under NPS Architecture Guidelines" is to suggest a set of guidelines and measures for the prevention and reporting of fraud to the Board of the entity, Law enforcement Agencies, and Authority. These guidelines are not exhaustive on the subject and every care should be taken by entities under NPS architecture to evolve best practices to detect, prevent, and contain fraud. The framework interalia aims to achieve the following objectives: -
Fraud Prevention: Evolve mechanisms to clearly Identify fraud and implement swift and effective mechanisms to mitigate the risk of fraud within the entity. This involves internally promoting a strong culture of fraud prevention, implementing robust controls, and raising awareness among all stakeholders.
Timely Detection: Enhance monitoring, data analytics, and reporting mechanisms to facilitate the early detection of fraudulent activities within the entity.
Subscriber Protection: Safeguard the interests of subscribers and beneficiaries by ensuring that intermediaries within the NPS Architecture adhere to high ethical standards and diligently protect the interests of subscribers. This objective aims to enhance subscriber confidence and maintain integrity.
These guidelines shall come into effect on December 20, 2023.
The detailed circular is given in the document attached below.
[Circular No. PFRDA/2023/36/SUP-CGSG/01]
