Can banks now manage India's National Pension System funds?

Yes, banks can now sponsor and manage pension funds for the National Pension System, subject to meeting specific eligibility criteria.

What new investment options are available for NPS subscribers?

NPS subscribers can now invest in gold and silver ETFs, the Nifty 50 index, and Alternative Investment Funds.

When will investment management fees for NPS funds change?

The Investment Management Fee structure for pension funds will be revised starting April 1, 2026.

Home / Business and Economy / Banks to Sponsor India Pension Funds!

Banks to Sponsor India Pension Funds!

1 Jan

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Summary

Banks can now sponsor National Pension System funds.
New NPS investments include gold, silver ETFs, and Nifty 50.
Investment management fees to be revised from April 2026.

Banks in India have received in-principle approval to sponsor pension funds managing assets under the National Pension System (NPS). This significant regulatory shift by the Pension Fund Regulatory and Development Authority (PFRDA) aims to foster greater competition within the sector.

Eligibility criteria for sponsoring banks include robust net worth, market capitalization, and financial stability, aligning with Reserve Bank of India guidelines. This development expands the investment horizons for NPS subscribers, who can now allocate funds to gold and silver ETFs, the Nifty 50 index, and Alternative Investment Funds.

The PFRDA is also implementing broader reforms, including a revision of Investment Management Fees effective April 1, 2026. Additionally, three new trustees, including a former State Bank of India chairman, have joined the NPS Trust Board.

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