The Pension Fund Regulatory and Development Authority (PFRDA) has issued a fresh Master Circular dated March 28, 2025, outlining updated investment guidelines for NPS Tier-I and Tier-II accounts. These are applicable excluding the government-backed and corporate schemes (like UPS, Central/State Government default, Corporate CG, NPS Lite, and APY), which are covered under a separate circular.
📘 Key Highlights of the Circular:
🔹 Applicability
- Focused on NPS Tier-I and Tier-II accounts other than default government and corporate schemes.
- Applies to all Pension Funds and the NPS Trust managing these accounts.
🔹 Legal Backing
- Issued under Section 14(2)(b) and Section 23 of the PFRDA Act, 2013, along with Regulation 14(1) of PFRDA (Pension Fund) Regulations, 2015.
🔹 Supersession & Validity
- Consolidates and rescinds all prior circulars/letters on this subject (listed in Part IV).
- Past actions, rights, obligations, or proceedings under the rescinded circulars remain valid and enforceable, ensuring continuity and legal clarity.
📑 Structure of the Master Circular:
✅ Compliance Notes:
- Entities must comply not only with this Master Circular but also with all other applicable laws and PFRDA regulations.
- The circular ensures no disruption in operations by maintaining the legal effect of previously issued directives until their merger into this master document.
The Circular is Effective from April 1 , 2025 .
