In exercise of the powers conferred by sub section (1) of section 52 read with clause (w) of sub section (2) thereof, of the Pension Fund Regulatory and Development Authority Act, 2013 (23 of 2013), the Pension Fund Regulatory and Development Authority

REGD. No. D. L.-33004/99 The Gazette of India CG-DL-E-20072026-274608 EXTRAORDINARY PART III-Section 4 PUBLISHED BY AUTHORITY No. 451] NEW DELHI, TUESDAY, JULY 14, 2026/ASHADHA 23, 1948 PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY NOTIFICATION New Delhi, the 13th July, 2026 PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY (REGULATORY SANDBOX) REGULATIONS, 2026 F. No. PFRDA-16/01/01/0001/2026-REG-CRA. In exercise of the powers conferred by sub- section (1) of section 52 read with clause (w) of sub-section (2) thereof, of the Pension Fund Regulatory and Development Authority Act, 2013 (23 of 2013), the Pension Fund Regulatory and Development Authority, hereby makes the following regulations, namely: - CHAPTER I - PRELIMINARY 1. Short Title and Commencement (1) These Regulations may be called the Pension Fund Regulatory and Development Authority (Regulatory Sandbox) Regulations, 2026. (2) They shall come into force on the date of their publication in the Official Gazette. 2. Objective (1) The objective of these Regulations is to facilitate: (a) responsible innovation in the pension sector while ensuring the protection of subscribers' interest and the orderly development of pension schemes regulated by the Authority; and (b) the establishment of a Regulatory Sandbox for testing innovative solutions and, where necessary, granting limited and time-bound regulatory relaxations for such testing. 3. Definitions (1) In these Regulations, unless the context otherwise requires: (a) "Act" means the Pension Fund Regulatory and Development Authority Act, 2013; (b) "Applicant" means: (i) An intermediary registered with the Authority under Section 27 of the Act or an entity empanelled with the Authority under the Regulations; (ii) An intermediary or an entity empanelled with the Authority applying in association with any entity incorporated or registered under applicable laws in India; or (iii) Any other entity permitted to apply under the Sandbox Framework. (c) "Authority" means the Pension Fund Regulatory and Development Authority established under subsection (1) of Section 3 of the Act; (d) "Regulatory Sandbox" means a controlled environment enabled by the Authority for testing a Test Solution for a specified period and subject to such conditions as may be specified by the Authority; (e) "Sandbox Entity" means an applicant whose application has been approved by the Authority under these regulations; (f) "Sandbox Framework" means the guidelines, circulars or directions issued by the Authority for implementation of these Regulations. (g) "Test Solution” shall mean the proposed products, services, business models, processes, technologies or delivery mechanism intended to be tested under the Regulatory Sandbox; (h) "User" means a subscriber or prospective subscriber who voluntarily participates in the testing of a Test Solution after providing informed consent. CHAPTER II - REGULATORY SANDBOX 4. Eligibility and Application (1) An applicant desirous to participate in the Regulatory Sandbox shall submit an application in the form and manner as laid down in Sandbox Framework. (2) The eligibility criteria, evaluation parameters, application procedure and supporting documents shall be such as may be specified in the Sandbox Framework. 5. Approval and Testing (1) The Authority may approve or reject any application received under these regulations. (2) The Authority may specify the scope, duration, testing parameters, user limits, reporting requirements and other conditions applicable to an approved test solution. (3) The Authority may operationalise the Regulatory Sandbox in such manner as may be specified in the Sandbox Framework. 6. Regulatory Relaxations (1) An applicant may seek exemption or relaxation from the applicability of any regulation, guideline, circular, direction or instruction issued by the Authority under the Act, to the extent required for testing the Test Solution. The Authority may, for facilitating testing under the Regulatory Sandbox, grant such exemption or relaxation subject to such condition and for such period as it may determine. Provided that the aggregate period of testing, including any extension, shall not exceed twelve months from the date of first approval. (2) Any relaxation granted under sub-regulation (1) shall be subject to the applicant satisfying such conditions, including the period thereof, as may be laid down by the Authority and in accordance with the Sandbox framework. Provided that no relaxation shall be granted from the provisions of the Pension Fund Regulatory and Development Authority Act, 2013, Know Your Customer (KYC), Anti-Money Laundering (AML) and Counter Financing of Terrorism (CFT) requirements, Digital Personal Data Protection Act, 2023, cyber security, fraud prevention, foreign exchange management or any other applicable law. (3) Any exemption or relaxation granted shall be limited to the duration and scope of testing approved by the Authority and shall not constitute as a precedent in respect of the same applicant or any other applicant. (4) Any requirement for which exemption or relaxation is not expressly granted by the Authority shall continue to apply. 7. Obligations and Liabilities (1) Every sandbox entity shall ensure protection of subscribers' interest throughout the testing period. Every Sandbox Entity shall comply with these regulations, the Sandbox Framework and the conditions of approval. (2) The sandbox entity shall remain responsible and liable for all acts, omissions and consequences arising from the testing of the Test solution, including acts or omissions of any associated entity. Where testing is undertaken by an intermediary or an entity empanelled with the Authority, in association with any other entity, such intermediary or empanelled entity shall remain responsible for compliance with the conditions of approval and for the conduct of the associated entity. (3) The sandbox entity shall be liable for any loss or damage caused to a user arising from breach of the conditions of approval, testing beyond the approved scope or testing without informed consent. (4) The participation of the sandbox entity in the Regulatory Sandbox shall not be construed as approval, endorsement or certification of the Test solution by the Authority. The Authority shall not be liable for any acts, omissions or consequences arising from the testing of the Test solution. (5) The sandbox entity shall obtain informed consent from every user and, wherever applicable, also from the employer of the user prior to testing the Test Solution. 8. Monitoring, Inspection and Revocation (1) The Authority may at any time monitor, inspect, audit, investigate or seek information from any sandbox entity in addition to the requirement of periodic reporting as laid down in Sandbox framework. (2) The Authority may at any time suspend, revoke or modify any approval granted under these Regulations if it is satisfied that the activities of the Sandbox entity are not in consonance with these regulations, Sandbox Framework or any guidelines issued by the Authority. 9. Exit and Post-Testing (1) Upon completion, discontinuation, suspension, revocation or termination of testing, the sandbox entity shall comply with the exit requirements as may be specified by the Authority. (2) Deployment of a Test solution beyond the Regulatory Sandbox shall be subject to compliance with applicable laws and such approvals as may be given by the Authority. CHAPTER III – MISCELLANEOUS 10. Inter-Regulatory Sandbox. A Test Solution falling within the regulatory ambit of more than one financial sector Regulator, including the Authority, shall be in accordance with the circular, guidelines or directions issued by the Authority. 11. Savings of Powers. Notwithstanding anything contained in these Regulations, the Authority reserves all powers vested in it under the PFRDA Act, 2013, including the power to take such action against a Sandbox Entity as it deems fit. No relaxation, exemption, or concession granted under these Regulations shall be construed to limit, waive, or otherwise derogate from such powers. 12. Power to Issue Framework, Guidelines and Directions The Authority may issue circulars, guidelines and directions, as necessary from time to time, providing the operational details of the Regulatory Sandbox including the application process, formats, testing stages and timelines, cohort themes and modalities, monitoring and reporting requirements, and such other matters as may be required for effective implementation of these Regulations. 13. Power to Clarify and Remove Difficulties The Authority may issue clarifications, directions or instructions as may be deemed appropriate to interpret the provisions of these regulations or to remove any difficulties in the implementation of these Regulations. SIVASUBRAMANIAN RAMANN, Chairperson [ADVT.-III/4/Exty./220/2026-27]