From October 1, 2025, people in the non-government sector who invest in the National Pension System (NPS) will get a new benefit. They will be allowed to invest up to 100% of their money in equities under one scheme. This has become possible after the launch of the Multiple Scheme Framework (MSF).
Earlier, investors could hold only one scheme per tier under one Central Recordkeeping Agency (CRA). Now, they can hold multiple schemes across different CRAs like CAMS, Protean, and KFintech through their PRAN (Permanent Retirement Account Number).
What the notification says
The Pension Fund Regulatory and Development Authority (PFRDA) has made changes for more flexibility. Pension funds can now design different schemes for different types of subscribers. These groups may include self-employed people, digital workers, and corporate employees where companies also contribute.
Every scheme must offer at least two options—Moderate Risk and High Risk. Under the High Risk option, subscribers can invest up to 100% in equities. Funds may also add a Low Risk option if they want.
Exit and withdrawal rules
There will be no change in exit and annuity rules. The same conditions will apply as already given under PFRDA regulations.
Switching rules
Subscribers can switch from MSF schemes to common schemes during the vesting period. But, switching between Section 20(2) schemes will only be allowed after 15 years of vesting or at the time of normal exit.
What will change from October 1
From October 1, NPS investors will be able to hold more than one scheme under the same PRAN across different CRAs. Earlier, this was not allowed.
Pension funds will also launch new schemes for different subscriber groups. For example, corporate employees, gig workers, and self-employed professionals will get customized options.
Each scheme will provide at least two types:
- Moderate Risk
- High Risk (up to 100% equity allowed)
Here is a simple table to explain:
| Subscriber group | Scheme types available | Maximum equity allowed |
| Corporate employees | Moderate Risk, High Risk | Up to 100% |
| Self-employed workers | Moderate Risk, High Risk | Up to 100% |
| Digital economy workers | Moderate Risk, High Risk | Up to 100% |
More benefits for investors
This change will give investors more control and flexibility. They can balance conservative and aggressive plans within the same account. This will also help them plan their savings better for different goals in life.
For example, one scheme can be kept for retirement with moderate risk, while another scheme can be used for high growth with 100% equity. This mix of choices gives better diversification.
Conclusion
The new NPS rules from October 1, 2025, will make investing easier and more flexible for non-government subscribers. They can now choose from multiple schemes and invest up to 100% in equities. This change will help investors plan better and match their savings with different life goals.
Disclaimer:This article is for general information only. It is not financial advice. Rules and benefits may change based on government or PFRDA updates. Investors should check the latest guidelines before making decisions.