Section 16 in Pension Fund Regulatory and Development Authority (Trustee Bank) Regulations, 2015
16. Roles and responsibilities.
- [(1) The Trustee Bank shall assume the day to day banking of the funds under the schemes regulated or administered by the Authority and shall provide banking facilities in accordance with the provisions of the directions issued by the Authority in terms of the Act, the rules and the regulations made there under, operational service level agreements executed with the National Pension System Trust and standard operating procedure issued by the National Pension System Trust, based on the Authority's guidelines.] [Substituted by Notification No. PFRDA/12/RGL/139/6, dated 19.2.2019 (w.e.f. 23.3.2015).](2)[ The Trustee Bank shall exercise all due diligence and vigilance in carrying out its duties and in protecting the rights and interests of the subscribers, the beneficiaries of the schemes under the schemes regulated or administered by the Authority. The Trustee Bank shall be responsible for the acts of omissions or commissions by its employees or the persons whose services have been procured by the Trustee Bank in whatever capacity.] [Substituted by Notification No. PFRDA/12/RGL/139/6, dated 19.2.2019 (w.e.f. 23.3.2015).](3)[ The account of the National Pension System Trust with the Trustee Bank shall be in the name of National Pension System Trust and the Trustee Bank shall be holding the funds of the National Pension System Trust. However, individual subscribers under the schemes regulated or administered by the Authority shall remain beneficial owners of these funds.] [Substituted by Notification No. PFRDA/12/RGL/139/6, dated 19.2.2019 (w.e.f. 23.3.2015).](4)The Trustee Bank shall maintain all books and records of the National Pension System Trust Account and comply with the disclosure requirements as specified by Authority or National Pension System Trust from time to time and as provided in these regulations. The Trustee Bank shall maintain books and records about the fund flow and information flow between Trustee Bank, central recordkeeping agency, subscribers and pension funds to ensure compliance with the guidelines and submit regular reports at such intervals and in such manner as may be required or called for by Authority or its authorized representative. The books and records related to the National Pension System Trust's accounts shall be available for inspection to the Authority or its authorized officers, and National Pension System Trust and their respective auditors.(5)The banking of the funds shall be on account of the National Pension System Trust and the Trustee Bank shall discharge its duties in terms of the regulation with adequate care. The Trustee Bank shall be fully liable for any losses occasioned to the National Pension System Trust on account of any acts of omission or commission in the nature of fraud, negligence, dereliction of duty, misconduct or misdemeanor or any breach of applicable law or of the provisions of these regulations on the part of the Trustee Bank or its employees in which event the Trustee Bank shall be liable to indemnify the National Pension System Trust and the Board of Trustees for any loss occasioned (either directly or indirectly to the National Pension System Trust or Board of Trustees) or any claim raised against the National Pension System Trust or Trustees by any party in accordance with any agreement signed between the Board of Trustees and the Trustee Bank.(6)The funds shall be credited to separate accounts in the name of the National Pension System Trust maintained with the designated branch of the Trustee Bank. All receipts, payments, income and expenses shall be debited or credited to this account. The Trustee Bank shall be responsible for the day-to-day flow of funds.(7)(a)Systems and procedures, -(i)The Trustee Bank shall have all the necessary systems procedures, infrastructure that may be required to enable it to co-ordinate with other intermediaries;(ii)[ Firewall from other businesses: Trustee Bank shall ensure that a firewall is maintained in respect of the business under the schemes regulated or administered by the Authority, both in terms of staff and systems, from its other businesses;] [Substituted by Notification No. PFRDA/12/RGL/139/6, dated 19.2.2019 (w.e.f. 23.3.2015).](b)monitoring, review, evaluating and inspecting systems and controls, -(i)Trustee Bank must have adequate mechanisms for reviewing, monitoring and evaluating its controls, systems, procedures and safeguards;(ii)where the records are kept electronically, it must take precautions necessary to ensure that continuity in recordkeeping is not lost or destroyed and that a sufficient back-up of records is available;(iii)Trustee Bank shall have its systems inspected annually at its own cost, under the mechanism referred to in sub-clause (i), by an expert and this expert shall forward the inspection report within one month from the date of inspection to the Authority;(iv)Trustee Bank shall establish and maintain adequate infrastructural facilities to be able to discharge its role and responsibilities as per the "service-level agreement" with the National Pension System Trust, and the operating procedures and systems of the Trustee Bank shall be adequately documented and backed by operation manuals.(8)[ The Trustee Bank shall be required to ensure access to all records, data or any other relevant material in respect of the Trust Account maintained with the Trustee Bank to the National Pension System Trust for ensuring necessary supervision (both on-site and off-site). The Trustee Bank shall be responsible for transmission of information pertaining to the funds under the schemes regulated or administered by the Authority available with it and instructions to central recordkeeping agency on a regular basis. The Trustee Bank shall provide web based access to the National Pension System Trust, the Authority and other intermediaries as may be specified by the Authority or the National Pension System Trust. The Trustee Bank will be required to be able to adapt to future changes and functional obligations prescribed by the Authority or the National Pension System Trust.(9)The Trustee Bank shall sign the required Service Level Agreement, where applicable, with the National Pension System Trust and other intermediaries under the schemes regulated or administered by the Authority. The Trustee Bank shall establish an interface and work in total co-operation and co-ordination with the other intermediaries appointed under the National Pension System.] [Substituted by Notification No. PFRDA/12/RGL/139/6, dated 19.2.2019 (w.e.f. 23.3.2015).](10)The Trustee Bank shall not utilise the services of the sponsor or any of its associates, employees or their relatives, for the purpose of any of its duties and obligations:Provided that the Trustee Bank may utilise such services if disclosure to that effect is made to the National Pension System Trust.(11)The Authority, may in the interest of subscribers add, delete or modify or alter the roles and responsibilities as mentioned in these regulations through circulars, notifications and guidelines from time to time.
