PFRDA notifies new rules for Trustee Bank to protect NPS subscribers

The Pension Fund Regulatory and Development Authority (PFRDA) has notified the amended Trustee Bank and Central Recordkeeping Agency regulations to protect the National Pension System subscribers from fraud, reduce the cost of compliance and enhance the ease of doing business. The amended regulations were notified on February 9, according to a statement issued by the Finance Ministry on Thursday.

The amendments to Trustee Bank (TB) Regulations simplify and strengthen the provisions related to the implementation of fraud prevention and mitigation policy, compensation to the subscriber, invitation of application for new registration and surrender of certificate of registration, the ministry said. Trustee Bank manages the banking of pension funds under the applicable provisions of the National Pension System (NPS). Amendments to Central Recordkeeping Agency (CRA) Regulations simplify and strengthen the provisions related to the governance of CRA in line with the Companies Act, 2013 and enhance disclosure of information by CRA.

The other notable amendments include:

* Implementation of fraud prevention and mitigation policy by CRA to protect the interest of subscribers.
* Inclusion of certificate by CEO in the annual report in respect of adequacy and effectiveness of internal controls, compliance and audit processes.
* Criteria of 'fit and proper person' has been introduced for CRA and its key personnel.

The amendments in key areas aim at simplification and reducing compliance burden.