PFRDA circular PFRDA/2026/37/SUP-POP/06 · 17 Jun 2026
Official title
Audit of Points of Presence performing activities of Atal Pension Yojana (PoPs-APY)
Summary
Check the official recordThe Pension Fund Regulatory and Development Authority (PFRDA) has established a revised audit framework for Points of Presence (PoPs) performing Atal Pension Yojana (APY) activities. PoPs are categorized based on their subscriber base as of the last day of the financial year, with specific audit frequencies and reporting deadlines. Entities with 1,00,000 or more subscribers must undergo an annual audit, while those with fewer than 1,00,000 subscribers are audited once every three financial years. PoPs with fewer than 1,000 accounts are exempt from audit report submission. The audit must be conducted by an independent external chartered accountant or audit firm, covering internal controls, regulatory compliance, KYC/AML norms, and data security. Audit reports must be submitted to the PFRDA in the prescribed format.
What you must do
Key dates
Who is affected
Thresholds
If you do not comply
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Circular No. PFRDA/2026/37/SUP-POP/06
Dated: 17th June 2026
To, All Points of Presence performing activities of Atal Pension Yojana (PoPs-APY)
Subject: Audit of Points of Presence performing activities of Atal Pension Yojana (PoPs-APY)
PoPs registered under Regulation 3(1)(b) of Pension Fund Regulatory and Development Authority (Points of Presence) Regulations, 2018 and amendment thereof and performing activities of APY (PoPs-APY) shall ensure that the accounts and processes maintained under APY are audited as per the provisions of Operational Guidelines issued vide Circular dated 27th February 2026 under PFRDA (PoP) Regulations, 2018 and amendment thereof and as per the periodicity prescribed by the authority by an independent external chartered accountant/audit firm. The eligibility norms for appointment of auditor by PoP is prescribed at Annexure 1.
For submission of audit report (under the revised framework), PoPs have been categorized basis the number of associated subscribers as on the last day of the financial year and the same shall be applicable from the period April 1, 2026 to March 31, 2027. The categories for the same are tabulated below:
| Category | Subscriber base (as on the last day of the Financial Year) | Audit frequency | Due date of first audit report |
|---|---|---|---|
| I | Less than 1,00,000 | Once in three FY (For all three years) | 30.06.2029 (if audit report for FY 2025-26 has been submitted) |
| II | 1,00,000 and above | Every FY | 30.06.2027 |
Note: Point of Presence (PoPs) having less than 1000 APY accounts are exempted from submission of Audit Report. However, upon acquiring 1000 or more subscribers, PoP shall be required to submit the Audit Report for all preceding financial years.
The scope of such audit shall cover, inter-alia, the existence, scope, adequacy and efficacy of internal control system, procedures and safeguards, compliance with the provisions of the Pension Fund Regulatory and Development Authority Act, 2013, Pension Fund Regulatory and Development Authority (Points of Presence) Regulations, 2018 and amendment thereof and Guidelines/ Circulars/Notifications issued by the Authority, KYC norms as prescribed under PML Act/Rules and data security in respect of the operations of such Point of Presence. The Broad Scope of Audit is listed at Annexure 2.
PoPs must maintain the books of accounts and records including electronic records and documents as stipulated in the Regulations/Guidelines/Circulars/Notifications issued by the Authority from time to time.
The Audit Report format along with Instructions is placed at Annexure 3.
The Audit Report shall be reviewed by the Authority and appropriate course of action would be pursued in cases where reports are not as per the requirements.
In accordance with Regulation 27 of the Pension Fund Regulatory and Development Authority (Point of Presence) (Amendment) Regulations, 2026, the Authority may, at its discretion, arrange for the conduct of an audit of PoPs that fail to submit the Audit Report within the timelines prescribed under this circular.
PoPs-APY are advised to ensure compliance with the above.
(Ashish Kumar) Chief General Manager
Annexure 1
ELIGIBILITY NORMS FOR SELECTION OF AUDITOR
PoPs-APY shall appoint the external auditor as per the list of auditors empaneled by any of the Financial Sector Regulator (FSRs) including PFRDA to conduct the audit for activities related to APY. Further, the central/ state government department/ entities shall conduct the audit through the internal audit department or through the external auditor as per the list of auditors empaneled by any of the FSRs including PFRDA.
PoPs shall appoint the Auditor as per the eligibility criteria prescribed by the PFRDA, with the approval of the Audit Committee or the Board, wherever the Audit Committee is not present.
PoPs who are non-listed Government entities may engage the internal audit department or appoint Auditor as per the eligibility criteria prescribed by the PFRDA with the approval of Competent Authority.
Auditors shall be appointed for a tenure of three years.
Auditors will have a cooling period of two years in respect of the same PoP. After completion of tenure of three years, audit entity should not accept any audit assignment of that PoP during the next two years.
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Annexure 2
SCOPE OF WORK OF AUDIT ATAL PENSION YOJANA (APY)
Auditor appointed by the PoP shall conduct the audit of the PoP for activities related to APY. The Broad Scope of Work of Auditor is as under:
i. On-boarding and registration of subscribers. ii. Compliance of KYC/AML/CFT guidelines dated 25th September 2025 (including all subsequent amendments) issued by PFRDA iii. Collection and processing of initial contribution and subsequent contribution received from subscribers. iv. Uploading of Subscriber Contribution File (SCF) in CRA System and Transfer of Fund to Trustee Bank as per specified TATs in Operational Guidelines. v. Maintenance of collection account by the PoP in accordance with provisions of PFRDA (PoP) Regulations 2018 and amendments thereof or guidelines issued thereunder. vi. Reconciliation of subscriber’s contribution received by the PoP in the collection account and maintenance of audit trail for the same. vii. Subscriber grievance handling by the PoPs as prescribed under Redressal of Subscriber Grievance Regulations, 2015 and amendments thereof and circulars issued thereunder. viii. Quality of grievance resolution assurance as per the provisions under Para F (5) & (6) of Operational Guidelines for PoPs. ix. Receiving and processing service requests such as change in subscriber details, address, change in frequency of contribution, upgrade and downgrade of pension amount etc. received from the subscribers in the CRA system. x. Receiving and processing of subscriber withdrawal/exit request within timelines laid down in the operational guidelines including death related cases. xi. Adherence to the timeframe laid down under Guidelines issued by PFRDA. xii. Credit of Government co-contribution to the eligible subscribers from period 2015 to 2022. xiii. Utilization certificate submitted to PFRDA for credit of Government Co-contribution are in order. xiv. Payment of compensation by PoP for delayed activities as per laid down in extant Regulations and Guidelines. xv. Engagement of Services of Pension Agents as per regulation 44 and its code of conduct as per schedule II of Pension Fund Regulatory and Development Authority (Point of Presence) (Amendment) Regulations, 2023. xvi. Maintenance of Books of Accounts by the PoP. xvii. Verification of compliance report submitted by PoP to PFRDA. xviii. The auditor shall verify the status of open observations from the inspection conducted by PFRDA during the last three financial years to ensure their closure. If any observations remain unresolved, the auditor shall report them to the management of PoP for appropriate action and closure. xix. Compliance with the Circulars/Guidelines/Notifications/instructions issued by PFRDA and/ or any other Statutes.
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xx. Adherence to the requirement under Information and Cyber Security Policy Guidelines issued by PFRDA. xxi. Appointment and discharge of responsibilities of Compliance Officer, Designated Director and Principal Officer. xxii. Existence, scope, adequacy and efficacy of internal control system, procedures and safeguards for all the activities under APY. xxiii. Verification of fraud prevention and risk mitigation measures implemented by PoP. xxiv. Any other activity under the relevant regulations/circulars/ guidelines/ notifications/instructions issued by PFRDA.
