Audit of Points of Presence performing activities of NPS-Lite · PFRDA/2026/38/SUP-POP/07
PFRDA circular PFRDA/2026/38/SUP-POP/07 · 17 Jun 2026
Official title
Audit of Points of Presence performing activities of NPS-Lite (PoPs-NPS-Lite)
PFRDA circular PFRDA/2026/38/SUP-POP/07 · 17 Jun 2026
Official title
Audit of Points of Presence performing activities of NPS-Lite (PoPs-NPS-Lite)
Summary
Check the official recordThe PFRDA has mandated that Points of Presence (PoPs) performing NPS-Lite activities must undergo a triennial audit by an independent external chartered accountant or audit firm. This audit covers internal controls, regulatory compliance, KYC/AML adherence, and data security. PoPs are required to submit the audit report within three months from the end of the financial year. The first report under this revised framework covers the period from April 1, 2026, to March 31, 2027. Subsequent reports are due every three years, with a specific provision for the first submission by the end of FY 2028-29, provided the FY 2025-26 report was submitted. Failure to comply may result in the Authority arranging an audit at the PoP's expense.
What you must do
Key dates
Who is affected
Thresholds
If you do not comply
Circular No.: PFRDA/2026/38/SUP-POP/07
Dated: 17th June 2026
To, All Point of Presence (PoPs) performing activities of NPS-Lite (PoPs-NPS-Lite)
Subject: Audit of Points of Presence performing activities of NPS-Lite (PoPs-NPS-Lite)
PoPs registered under Regulation 3(1)(c) of Pension Fund Regulatory and Development Authority (Points of Presence) Regulations, 2018 and amendment thereof and performing activities of NPS-Lite (PoPs-NPS-Lite) shall ensure that the accounts and processes maintained under NPS-Lite 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 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.
PoPs-NPS Lite to submit the Audit Report (under the revised framework) once in every three (3) years (for all three years), within 3 months from the end of Financial Year (FY) or as specified by the Authority from time to time and the first such Audit Report (under the revised framework) shall be applicable from the period April 1, 2026 to March 31, 2027.
Further, PoPs shall submit their first Audit Report (under the revised framework) within three months from the end of FY 2028–29, provided that the Audit Report for FY 2025–26 has already been submitted.
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 requirements as per PMLA 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 reports 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-NPS-Lite are advised to ensure compliance with the above.
(Ashish Kumar) Chief General Manager
Annexure 1
ELIGIBILITY NORMS FOR SELECTION OF AUDITOR
PoPs-NPS-Lite 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 NPS-Lite. 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.
Annexure 2
SCOPE OF WORK OF AUDIT NATIONAL PENSION SYSTEM – LITE (NPS-LITE)
Auditor appointed by the PoP shall conduct the Audit of the PoP for activities related to NPS-Lite. The Broad Scope of Work of Auditor is as under:
i. Collection and processing of initial contribution and subsequent contribution received from the subscribers. ii. Compliance of KYC/AML/CFT guidelines dated 25th September 2025 (including all subsequent amendments) issued by the Authority. iii. Uploading of Subscriber Contribution File (SCF) in CRA System and Transfer of Fund to Trustee Bank as per specified TATs. iv. Maintenance of collection account by the PoP in accordance with provisions of PFRDA(PoP) Regulations 2018 and guidelines issued there under. v. Reconciliation of subscriber’s contribution received by the PoP in the collection account and maintenance of audit trail for the same. vi. Identification of unreconciled contribution amount which are pending for reconciled for more than seven years and recording the efforts taken by PoPs to reconcile such contribution amounts. vii. Subscriber grievance handling by the POPs as prescribed under Redressal of Subscriber Grievance Regulations, 2015 (as amended) and circulars issued there under. viii. Quality assurance of grievance resolution 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, and Pension Fund Change, Inter-sector shifting, re-KYC, migration to NPS/APY etc. received from the subscribers in CRA system. x. Receiving and processing of subscriber withdrawal/exit request with in timelines laid down in the Operational Guidelines, including death related cases. xi. Adherence to the timeframe laid down under the guidelines issued by PFRDA. xii. Payment of compensation by PoP for delayed activities as per laid down in extant Regulations and guidelines. xiii. Charges collected by the PoPs and to check the limits, mode and manner of collection as laid down by PFRDA. xiv. Maintenance of Books of Accounts by the PoPs. xv. Verification of Compliance report submitted by PoPs to PFRDA. xvi. 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. xvii. Compliance with the circulars/ guidelines/ notifications/instructions issued by PFRDA and/ or any other Statutes. xviii. Adherence to the requirement under Information and Cyber Security Policy Guidelines issued by PFRDA. xix. Appointment and discharge of responsibilities of Compliance Officer, Designated Director and Principal Officer. xx. Verification of fraud prevention and risk mitigation measures implemented by PoP. xxi. Any other activity under the relevant regulations/circulars/ guidelines/ notifications/instructions issued by PFRDA.
Note: The scope as specified above is only indicative and not exhaustive
Annexure 3
FORMAT OF AUDIT REPORT (To be furnished on the letter head of the Audit Firm)
CERTIFICATE FOR AUDIT
We have examined the relevant books of accounts, records and documents maintained by M/s____________________________________ (name of the Point of Presence (PoP)) bearing Pension Fund Regulatory and Development Authority (PFRDA) Registration Number ____________________ under NPS-Lite and to fulfill the audit requirement, as prescribed by Pension Fund Regulatory and Development Authority (Points of Presence) Regulations, 2018 (as amended) and Guidelines issued there under, for the financial year ________.
The purpose of this audit is to examine that the processes, procedures followed and the operations carried out by the Point of Presence (including the operations by its facilitators/Business Correspondents/any other service provider permitted by the PFRDA from time to time) are as per the applicable Acts, Rules, Regulations, By-laws prescribed by the Authority and Guidelines, Circulars, Notifications etc. issued thereunder.