PFRDA revises NPS scheme naming rules: What changes for subscribers

New rules will require PoPs to show schemes from all pension funds within a subscriber's chosen risk category

The Pension Fund Regulatory and Development Authority (PFRDA) has changed how schemes under the National Pension System (NPS) will be named and displayed, with an aim to make it easier for subscribers to compare investment options before choosing a scheme. 

Pension funds will no longer have to include category codes such as A, B, C, D and E in the names of their Multiple Scheme Framework (MSF) offerings. However, they will still have to disclose the applicable growth category and risk level alongside the scheme name.

 

The regulator has also tightened the rules governing how point of presence (PoP) platforms display pension fund schemes during subscriber onboarding. Platforms will generally have to show schemes from all pension funds within the category selected by a subscriber, rather than limiting the display to selected funds.

 

 

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.

 

Here is what the changes mean for NPS subscribers.

 

What changes in NPS scheme names?

Under the earlier framework, MSF scheme names were required to include the pension fund's abbreviation, the NPS identifier, the category code and the scheme name. 

The revised framework removes the category code from the scheme name. The new format will be:

• Abbreviation of the pension fund's name
• The common identifier 'NPS'
• A unique name for the scheme

For example, a scheme could be named 'XYZ NPS Retirement Scheme', without including its category code.

PFRDA has said that scheme names should be “simple, distinctive and easy to recall”.

 

If a pension fund offers multiple schemes within the same category, each must have a different name. This is intended to avoid confusion between schemes offered by the same fund.

 

There is also a distinction between Tier-I and -II offerings. Tier I is the default offering and does not need a separate suffix. However, the words “Tier II” must be added at the end of the name for relevant schemes.

 

Will subscribers still know the risk category?

Removing category codes from scheme names does not mean that subscribers will lose access to information about a scheme's investment category or risk level.

 

PFRDA has made it mandatory for pension funds to display the full applicable scheme category or growth category alongside the scheme name in public-facing material.

 

The category must appear in a smaller font immediately below or next to the unique scheme name in advertisements, media, public-facing literature and awareness material.

 

For instance, a scheme named “XYZ NPS Retirement Scheme” may carry the description “Aggressive Growth – Very High Risk” below its name.

 

The regulator has also directed pension funds to mention the applicable category clearly in the NPS Scheme Essentials Document and scheme brochure, wherever applicable.

 

This distinction matters because subscribers should not rely on a scheme's name alone to understand its investment risk. They will still need to check its category and other scheme-related information before investing.

How will NPS schemes appear on PoP platforms?

The other significant change concerns the way pension schemes are displayed on PoP platforms.

 

PoPs act as intermediaries through which subscribers can access NPS services and complete onboarding. Under the revised rules, a PoP operating its own platform must display schemes offered by all pension funds within the category selected by the subscriber.

 

For example, if a subscriber selects “Balanced Growth – Medium Risk”, the platform must show schemes from all pension funds offering products in that category. This will allow subscribers to compare the available options before making a choice.

 

However, PoPs can still give prominence to a particular pension fund. They may place its schemes at the top of the list and pre-select a specific scheme, provided schemes from all other pension funds in the selected category remain visible.

There is a specific exception for pension funds that also hold a PoP licence.

 

If a subscriber specifically chooses to access such a pension fund's own website or application, and the pension fund itself operates the onboarding process, the platform can display only schemes offered by that fund.

What about NPS Central and CRA platforms?

The revised framework also clarifies the requirements for NPS Central and Central Recordkeeping Agency (CRA) platforms.

 

Their standardised navigation process, including any interim redirection journey, must display schemes offered by all pension funds within the category selected by the subscriber. This is intended to allow subscribers to make their final selection from the available options.

PFRDA has also clarified that the Star NPS platform used by pension funds can display their schemes to the pension agents appointed by them.

 

Importantly, the subscriber-facing process must first capture the subscriber's choice of scheme type, category or risk appetite, as applicable, before displaying the corresponding schemes. Where the selected category is already visible on the selection screen, it need not be repeated as a separate element in the scheme name.

 

When will the new rules take effect?

The revised provisions must be implemented by December 1, 2026.

 

PFRDA has directed Central Recordkeeping Agencies, pension funds and PoPs to make the necessary changes to scheme names, brochures, NPS Scheme Essentials Documents, advertising material, websites, applications and subscriber onboarding journeys within this timeline. 

For existing and prospective NPS subscribers, the changes are primarily aimed at improving the presentation of investment choices. However, subscribers should continue to examine the scheme's growth category, risk level and investment details rather than choosing a pension fund solely on the basis of its name or position on a platform.