Moving towards implementing the Bajpai Committee recommendations,the Pension Fund Regulatory and Development Authority (PFRDA) has done away with the bidding process of pension fund managers (PFMs). The pension regulator has issued a revised set of guidelines for registration of PFMs to manage NPS.
The earlier process has now been replaced by a system which lays down the eligibility criteria for registration as PFMs. All interested players wanting to manage the NPS can now register as PFMs subject to the eligibility criteria. There is no limitation on the number of PFMs. The PFMs are now allowed to prescribe their own fee charges,subject to an overall ceiling to be laid down by the regulator.