PFRDA revises MSF naming rules, clarifies how PoPs must display pension fund schemes: Key NPS changes from 1 December
The Pension Fund Regulatory and Development Authority (PFRDA) has amended its previous circular on the standardized framework for the classification and presentation of schemes under the National Pension System (NPS).
The latest circular, issued on 3 November, changes the naming convention for Multiple Scheme Framework (MSF) schemes and clarifies how pension fund schemes must be displayed on Point of Presence (PoP) platforms.
Both the earlier provisions and the latest amendments will come into effect on 1 December. Here’s what you need to know.
What has changed in MSF scheme naming convention?
Clause 3.2 of the 28 August circular prescribed the naming format as: “Abbreviation of Pension Fund Name + NPS + MSF Category Code + Scheme Name.”
It also required every scheme name to indicate the applicable category code, with Category A representing the highest equity exposure and Category E the lowest.
The 3 November amendment removes the category code from the scheme name. The revised format is:
Abbreviation of Pension Fund Name + “NPS” + Unique Scheme Name
| Component | Description | Illustration |
| Pension Fund Abbreviation | Abbreviation of the name of the Pension Fund | XYZ |
| NPS Common identifier | “NPS” | NPS |
| Unique Scheme Name | Name of the scheme, as determined by the Pension Fund in accordance with the applicable framework. The name should be simple, distinctive and easy to recall. | Name of the Scheme by PF |
| Tier II Suffix | For Tier II schemes, the words “Tier II” shall be added at the end of the scheme name. Tier I is the default offering and need not be specifically mentioned. | Tier II |
*Source: PFRDA
PFRDA states: “The category code (A to E) shall not form part of the scheme name. Where a Pension Fund offers more than one scheme within the same category, each scheme shall have a distinct Scheme Name.”
| Scheme Type | Illustrative Scheme Name |
| Tier I Scheme | XYZ NPS Name of the Scheme |
| Tier II Scheme | XYZ NPS Name of the Scheme Tier II |
| Two schemes in the same category | XYZ NPS Name of Scheme (Different from the 1st Name) |
*Source: PFRDA
How will MSF scheme categories and risk levels be displayed now?
Although the category code has been removed from scheme names, subscribers will continue to receive information about the applicable scheme category and risk level.
In all media, public-facing literature and advertising material, the MSF scheme name must be accompanied by the applicable scheme category/growth category in a smaller font below or alongside the unique scheme name.
The category must also be clearly mentioned in the NPS Scheme Essentials Document and scheme brochure, wherever applicable.
What changes in display of NPS schemes on PoP platforms?
The 3 November circular also replaces Clause 4.2 of the 28 August circular, which addressed the display of pension fund schemes on PoP platforms.
The earlier provision said, “Platforms owned and operated by PoPs may, for the purpose of onboarding subscribers, display the Schemes offered by the Pension Fund(s) associated with such PoP.”
The revised provision distinguishes between a pension fund’s own platform and other PoP platforms.
PFRDA now states: “Any other PoP operating its own platform shall display the schemes of all Pension Funds within the category selected by the subscriber, in accordance with the standardised navigation and scheme-selection framework.”
However, a PoP can place a particular pension fund’s schemes at the top and pre-select a specific scheme, provided it continues to display schemes from all pension funds within the selected category.
There is an exception for pension funds that also hold a PoP licence. Platforms owned and operated by such pension funds can display only their own schemes when subscribers specifically choose to access the pension fund’s website or application and the onboarding journey is operated by that pension fund.
The regulator has also clarified that the standardized navigation journey on NPS Central and Central Recordkeeping Agency (CRA) platforms, including interim redirection journeys, must display schemes offered by all pension funds within the category selected by the subscriber.
Additionally, the Star NPS platform used by pension funds can display their schemes to the Pension Agents they appoint.
PFRDA further clarifies that subscriber-facing navigation must first capture the subscriber’s choice of scheme type, category or risk appetite, as applicable, before displaying the corresponding schemes. The category need not be repeated as a separate element in the scheme name if it is already displayed on the selection screen.
Disclaimer: This story is for informational purposes only. Please visit the official PFRDA website for the latest updates.
