The Pension Fund Regulatory and Development Authority (PFRDA) on February 23, 2026, issued a circular regarding the Sharing of Subscriber Information with Pension Funds under NPS Vatsalya Scheme & Asset Allocation Flexibility.
The Pension Fund Regulatory and Development Authority issued updated directions under the NPS Vatsalya Scheme Guidelines, 2025 to strengthen scheme administration and subscriber engagement. A key decision is that Central Recordkeeping Agencies (CRAs) will share structured subscriber information with respective Pension Funds. This includes insights on geography, gender diversity, contribution patterns, and communication needs to support better servicing and outreach.
Data sharing is tightly regulated. It must be used only for scheme management, communication, and service improvement, while strictly following privacy, security, and legal compliance requirements. The framework mandates regulatory oversight, audit trails, and reporting standards. Intermediaries must align their systems, access controls, and compliance processes accordingly, and any misuse or breach of data protection norms will invite regulatory action.
The circular also provides flexibility in asset allocation. Pension Funds may either follow the Authority’s prescribed allocation framework or design their own strategy across equity, debt, and money market instruments, including the option of full equity exposure. However, all strategies must comply with the broader NPS regulatory framework. Where Pension Funds choose their own allocation model, they must clearly disclose it to subscribers at onboarding and publish it prominently on their websites.
Overall, the measures aim to improve targeted outreach, support innovation, enhance transparency, and strengthen long-term sustainability of NPS Vatsalya. Pension Funds are encouraged to actively engage subscribers on investment approach and risk features to enable informed decisions, and they are advised to implement the guidelines at the earliest under the Authority’s statutory powers.
[Circular No.: PFRDA/2026/09/REG-PF/03]
