What do ‘Points of Presence’ refer to
Premium- PoPs can typically be entities such as banks, non-banking financial institutions, pension fund managers, and brokerage firms that provide their services to investors for a small charge
Points of Presence, or PoPs, are a crucial element of National Pension System (NPS), a government-launched retirement savings scheme that was opened to all citizens in 2009. They have an important role in helping new subscribers enter the scheme.
PoPs can typically be entities such as banks, non-banking financial institutions, pension fund managers, and brokerage firms that provide their services to investors for a small charge. The cap on PoP charges was raised from 0.25% to 0.5%, last year. One can access the state-wise list of PoPs on the NPS Trust website.
PoPs are appointed by the Pension Fund Regulatory and Development Authority (PFRDA), the NPS regulator, and are tasked with helping individuals in opening an NPS account and making contributions to the scheme.
Their tasks encompass verification of subscriber registration forms, know your customers (KYC) documents.
They are also involved in the processing of the initial contribution at the time of registration and the regular contributions thereafter.
PoPs also help with services such as changing a subscriber’s details, changing investment schemes, processing withdrawal requests, to name a few.
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