New Delhi, July 23 -- The Pension Fund Regulatory and Development Authority (PFRDA) has strengthened safeguards for National Pension System (NPS) subscribers by making pension funds responsible for any lapses by third-party entities they engage to operate certain services.

The change has been notified through the Pension Fund Regulatory and Development Authority (Exits and Withdrawals under the National Pension System) (Amendment) Regulations, 2026, which came into effect on 13 July 2026. The amendment inserts a new Regulation 4A into the existing Exits and Withdrawals Regulations, 2015.

The newly inserted Regulation 4A allows a pension fund to engage another entity to operationalise a "specific purpose scheme" in accordance with guidel...