The Reserve Bank of India (RBI) notified that the Central Recordkeeping Agency (CRA) will replace Pension Funds as the Financial Information Provider (FIP) in the Account Aggregator (AA) ecosystem.According to the directions from the Pension Fund Regulatory and Development Authority (PFRDA), what relevant information does the CRA hold in the National Pension Scheme (NPS) system?

Solution

The Reserve Bank of India (RBI) notified that the Central Recordkeeping Agency (CRA) will replace Pension Funds as the Financial Information Provider (FIP) in the Account Aggregator (AA) ecosystem.The RBI modified certain sections of the Account Aggregator (AA) in the master direction on Non-Banking Financial Company (NBFC) by stating that some entities eligible to join the AA ecosystem as Financial Information Users (FI-U) must join as Financial Information Providers (FIP) provided they possess the specified financial information and meet the criteria outlined for FIPs.According to the directions from the Pension Fund Regulatory and Development Authority (PFRDA), the CRA, which acts as an interface between the different intermediaries in the National Pension Scheme (NPS) system, holds relevant information about the subscribers and their balances in the NPS and has therefore suggested to the RBI to replace the Pension Funds with CRA as the financial information provider (FIP) in the AA ecosystem.