PFRDA master_circular PFRDA/Master Circular/2024/04/PoP-02 · 25 Sept 2025
Official title
Master Circular - Guidelines on Know Your Customer / Anti Money Laundering/Combating the Financing of Terrorism (KYC/AML/CFT)
Summary
Check the official recordThis Master Circular consolidates PFRDA guidelines for Point of Presence (PoPs), NPS Trust, and Central Recordkeeping Agencies (CRAs) regarding KYC, Anti-Money Laundering (AML), and Combating the Financing of Terrorism (CFT). It mandates that reporting entities implement a robust Client Due Diligence (CDD) program, appoint a Designated Director and Principal Officer, and conduct ongoing risk assessments. The circular details permissible KYC methods, including digital and video-based processes, and outlines requirements for periodic KYC updation based on risk categorization (Low, Medium, High). Reporting entities must maintain records for five years, monitor transactions for suspicious activity, and report to the Financial Intelligence Unit-India (FIU-IND). Compliance with the Unlawful Activities (Prevention) Act, 1967, is also required.
What you must do
Key dates
Who is affected
If you do not comply
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[1] Amended the previous text that read as: All Point of Presence (PoPs), NPS Trust[a] and Retirement Advisers
MASTER CIRCULAR
PFRDA/Master Circular/2024/04/PoP-02
(Updated as on 25th September 2025) (Updated as on 23rd September 2024) (Updated as on 10th April, 2024) (Updated as on 12th October, 2023) (Updated as on 7th August, 2023) (Updated as on 7th June, 2023) Issued on 23rd January, 2023
To [1] All Point of Presence (PoPs), NPS Trust[a]
Madam/Sir,
Master Circular - Guidelines on Know Your Customer / Anti Money Laundering/Combating the Financing of Terrorism (KYC/AML/CFT)
This circular is issued in exercise of powers conferred under Section 14(1) of the Pension Fund Regulatory and Development Authority Act, 2013 (PFRDA Act) and the Prevention of Money- laundering (Maintenance of Records) Rules, 2005 for the implementation of the provisions of the Prevention of Money Laundering Act, 2002, and rules notified thereunder, in respect of the pension schemes regulated and administered by the Authority.
This master circular consolidates the existing instructions on the subject of “Guidelines on Know Your Customer / Anti-Money Laundering / Combating the Financing of Terrorism (KYC/AML/CFT)” at one place.
The list of underlying circulars consolidated in the Master Circular – is placed at Annexure I and the list of circulars rescinded from time to time and archived is placed at Annexure II.
This circular is issued with the approval of the competent authority and all concerned shall take steps to implement the measures contained herein forthwith.
Yours faithfully, (Ashish Kumar) Chief General Manager
Copy to: All Central Record Keeping Agencies
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| CONTENTS |
|---|
| PART I |
| PART II |
| PART III |
| PART IV |
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[2] Amended the previous text that read as: These Guidelines are for use by PoPs, NPS Trust, CRAs and Retirement Advisers registered under the PFRDA Act and the respective Regulations.
Guidelines on Know Your Customer / Anti-Money Laundering / Combating the Financing of Terrorism (KYC/AML/CFT)
PART I
1. Introduction
1.1 These guidelines shall be called the Guidelines on Know Your Customer / Anti-Money Laundering / Combating the Financing of Terrorism (KYC/AML/CFT).
1.2 National Pension System (NPS) has an unbundled Architecture, where each function is performed by different intermediaries appointed by the PFRDA viz. Pension Funds, Custodian, Central Recordkeeping Agency (CRA), National Pension System Trust, Trustee Bank, Points of Presence (PoP), Retirement Advisers (RAs) and Annuity Service Providers (ASPs) registered with Insurance Regulatory and Development Authority of India (IRDAI). Wherein, the role of CRA is recordkeeping, administration and customer service functions for all the subscribers of the NPS including issuance of unique Permanent Retirement Account Number (PRAN) to each subscriber, maintaining a database of all PRANs issued and recording transactions relating to each subscriber’s PRAN.
1.3 Money Laundering is a process or activity through which proceeds of crime (i.e., illegally acquired money) are converted in the financial systems (by means of undertaking transactions) so that it appears to be legally acquired. Section 3 of PML Act prescribes the Offence of Money Laundering.
1.4 In terms of the provisions of Prevention of Money Laundering Act, 2002 (PML Act), Section 11A thereof and the Prevention of Money Laundering (Maintenance of records) Rules, 2005 (PML Rules), reporting entities (RE) are required to follow Customer Identification Procedures (CIP) while undertaking a transaction at the time of establishing an account-based relationship and monitor their transactions on an on-going basis.
1.4a [2] These Guidelines are for use by PoPs, NPS Trust and CRAs registered under the PFRDA Act and the respective Regulations.
1.5 The obligation to establish an anti-money laundering mechanism and formulate and implement a Client Due Diligence (CDD) Programme applies to Reporting Entities (REs) as per provisions of Section 12 and Section 12AA of the PML Act and Rule 9 of the PML (Maintenance of Records) Rules, 2015. REs shall have the responsibility for compliance of the provisions of the PML Act, rules and guidelines issued by the Authority in respect of NPS, NPS Lite, Atal Pension Yojana (APY) or any other pension scheme regulated / administered by Authority and take necessary actions including maintenance of records and reporting.
1.6 All REs shall take steps to implement provisions of the PML Act and the PML Rules, Section 51A of the Unlawful Activities (Prevention) Act, 1967(UAPA) as amended from time to time, including operational instructions issued through circulars/guidelines/ directions in pursuance of such amendment(s).
1.7 All regulated entities shall undertake appropriate measures to ensure compliance with Hon’ble Supreme Court Order dated April 30, 2025 in the matter of Pragya Prasun and Ors. vs Union of India (W.P.(C) 289 of 2024) and Amar Jain vs Union of India & Ors. (W.P.(C) 49 of 2025), as applicable.
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[3] Deleted: Prior to deletion it read as “Certified copy” shall mean comparing the copy of officially valid document so produced by the subscriber with the original and recording the same on the copy by the authorised officer of the reporting entity in a manner specified by PFRDA.
1.8 These Guidelines emphasize the importance of risk-based approach for periodic updation of KYC ensuring that the information or data collected under Client Due Diligence (CDD) is kept up-to-date and relevant.
PART II
2 GENERAL GUIDELINES
2.1 The compliance obligation to the intermediary/entity shall not be confined merely to the Master Circular, but also the applicable laws, in this regard.
2.2 This Master Circular shall take effect from the date of its issuance but shall be without prejudice to earlier issued circulars, for the period when they were in force, until being subsumed under the Master Circular. Based on the above caveat, Part IV containing the list of circulars consolidated in the Master Circular – is placed at Annexure I, such that they are subsumed in the Master Circular and for all purpose and intent, remain operative, with no break of continuity. The list of circulars rescinded from time to time and archived is placed at Annexure II.
2.3 Notwithstanding such rescission of any circular, upon their merger in the Master Circular, or otherwise, anything done or any action taken or purported to have been done or taken, or to be taken hereafter, under the circulars now rescinded (for the period of their operation) shall be construed to have been validly taken as if the said circulars are in full force and effect and shall remain unaffected by their rescission, in any manner.
2.4 The previous operation of the rescinded circulars or anything duly done or suffered thereunder, any right, privilege, obligation or liability acquired, accrued or incurred, any penalty, any order passed, any violation committed, any investigation, legal proceedings pending in terms of the circular (now rescinded), shall be treated as if the circulars are in full force and effect, and shall remain unaffected by their rescission, in any manner.
PART III
3 DEFINITIONS
In these guidelines, unless the context otherwise requires, the terms herein shall bear the meanings assigned to them below:
