The Pension Fund Regulatory and Development Authority (PFRDA) has notified the Trustee Bank (TB) (Amendment) Regulations, 2023 and the Central Recordkeeping Agency (CRA) (Amendment) Regulations, 2023 on 09.02.2024.

The amendments to Trustee Bank (TB) Regulations simplify and strengthen the provisions related to implementation of fraud prevention and mitigation policy, compensation to the subscriber, invitation of application for new registration and surrender of certificate of registration.

Amendments to Central Recordkeeping Agency (CRA) Regulations simplify and strengthen the provisions related to governance of CRA in line with Companies Act, 2013 and enhanced disclosure of information by CRA. The other notable amendments inter alia include:

1. Implementation of fraud prevention and mitigation policy by CRA to protect the interest of subscribers.
2. Inclusion of certificate by CEO in the annual report in respect of adequacy and effectiveness of internal controls, compliance and audit processes.
3. Criteria of ‘fit and proper person’ has been introduced for CRA and its key personnel.

The amendments in key areas aim at simplification and reducing compliance burden.

For detailed information on the amended regulations, please visit the PFRDA website:

Trustee Bank:

https://www.pfrda.org.in/myauth/admin/showimg.cshtml?ID=2888

Central Recordkeeping Agency:

https://www.pfrda.org.in/myauth/admin/showimg.cshtml?ID=2886

The above simplifications are in line with Union Budget 2023-24 announcement to review regulations to reduce the cost of compliance and enhance the ease of doing business.

Subscriber protection strengthened: revised Trustee Bank and CRA regulations enhance fraud prevention and governance measures. Amendments to Trustee Bank and Central Recordkeeping Agency regulations strengthen subscriber protection by mandating implementation of a fraud prevention and mitigation policy, procedures for compensation to subscribers, and streamlined registration and surrender processes, while CRA reforms align governance with the Companies Act, require CEO certification on internal controls and compliance, introduce a fit and proper person criterion for CRA and key personnel, and enhance disclosure to reduce compliance burden and improve ease of doing business.