PFRDA notifies amendments to Trustee Bank and Central Recordkeeping Agency Regulations to enhance Ease of Doing Business

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 the Trustee Bank (TB) Regulations simplify and reinforce rules pertaining to the implementation of fraud prevention and mitigation policy, subscriber compensation, invitation of application for new registration, and surrender of certificate of registration.

Amendments to the Central Recordkeeping Agency (CRA) Regulations simplify and tighten rules relating to CRA governance in accordance with the Companies Act of 2013, as well as enhanced CRA information dissemination.

The other notable amendments inter alia include:

i. Implementation of fraud prevention and mitigation policy by CRA to protect the interest of subscribers.
ii. Inclusion of certificate by CEO in the annual report in respect of adequacy and effectiveness of internal controls, compliance and audit processes.
iii. 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. The above simplifications are in line with the Union Budget 2023-24 announcement to review regulations to reduce the cost of compliance and enhance the ease of doing business.

For detailed information on the amended regulations download pdf given below: