Opening An NPS Account Online? PFRDA’s New OTP Rule Explained

Last Updated:January 05, 2026, 16:13 IST

Pension Fund Regulatory and Development Authority mandates OTP or e-sign authentication for National Pension System online registration.

The Pension Fund Regulatory and Development Authority (Pension Fund Regulatory and Development Authority) has tightened the process for paperless onboarding under the National Pension System (National Pension System), making OTP- or e-sign-based authentication mandatory at the final stage of online registration.

In a circular dated January 2, 2026, the regulator asked all Central Recordkeeping Agencies (CRAs), Points of Presence (POPs), and other NPS stakeholders to align their systems with the updated requirements.

What has changed

The new circular partially modifies the earlier June 2020 guidelines that allowed paperless NPS account opening using either e-sign or OTP. While both modes remain valid, the regulator has now clarified that authentication through e-sign or OTP received on the applicant’s registered mobile number is compulsory to complete the online registration journey.

Importantly, subscriber consent and all mandatory declarations must now be explicitly obtained at the end of the digital onboarding process through the same authentication method.

Why the Move Matters

The clarification aims to strengthen the integrity of digital onboarding and ensure that subscriber consent is clearly recorded. By mandating authentication at the final stage, the regulator seeks to reduce disputes, improve audit trails, and enhance subscriber protection in a fully paperless environment.

The move also aligns NPS onboarding with broader trends in digital financial services, where OTP and e-sign authentication have become standard practice.

What CRAs and POPs Must Do

The regulator has directed CRAs and POPs to update their IT systems, workflows, and subscriber journeys in line with the revised norms. This includes ensuring that online forms cannot be submitted without successful OTP or e-sign verification.

The circular has been issued under powers granted by Section 14 of the PFRDA Act, 2013, making compliance mandatory for all stakeholders.

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