NPS New Rules : From October 1, 2025, non-government sector NPS subscribers will receive a major benefit. They will now be able to allocate up to 100% of their funds in equities within any single NPS scheme. This change has been introduced under the recently launched Multiple Scheme Framework (MSF). Under this framework, individuals who are not government employees can now hold multiple schemes across different Central Recordkeeping Agencies (CRAs) such as CAMS, Protean, and KFintech through their Permanent Retirement Account Number (PRAN). Previously, this option was limited, as only one scheme per tier per CRA was allowed.
NPS New Rules : What Does the Notification Say
According to the notification, the Pension Fund Regulatory and Development Authority (PFRDA) has allowed pension funds (PFs) to design schemes specifically tailored for different subscriber groups. These groups may include digital economy workers, self-employed professionals, and corporate employees where employers also contribute. Every scheme will be required to offer at least two variants: Moderate Risk and High Risk. The High Risk option will allow up to 100% investment in equities. Pension funds may also provide a Low Risk option if they wish.
Exit and Withdrawal Rules
The conditions for exit and annuitization will remain the same as those already defined under PFRDA regulations.
Switching Rules
Switching from a scheme introduced under the MSF to a common scheme will be allowed during the vesting period. However, switching between Section 20(2) schemes will only be possible after completing at least 15 years of vesting or at the time of normal exit.
What Will Change from October 1
Subscribers will be able to manage more than one scheme across different CRAs under the same PAN. Earlier, only one scheme was allowed per tier. Pension funds will now be able to introduce customized schemes for different subscriber groups such as corporate employees, gig workers, or self-employed professionals. Each of these schemes will have at least two variants—Moderate and High Risk. The High Risk variant will permit up to 100% equity investment.
This change also brings greater diversification opportunities. Investors will now be able to balance conservative and aggressive strategies within the same account. This will help them align their savings more effectively with different life goals.
