PFRDA pension plan for informal workers could soon make it easier for people in the unorganised sector to open pension accounts through their mobile phones and contribute using UPI.
The Pension Fund Regulatory and Development Authority is exploring a simplified digital process using the e-Shram database.
PFRDA Pension Plan for Informal Workers
PFRDA Chairperson Sivasubramanian Ramann said the regulator is examining a system that would allow workers already registered on the government’s e-Shram database to open pension accounts through a simple, few-click process on their phones.
The e-Shram database already contains several details needed for opening a pension account.
PFRDA wants to use this information to simplify digital onboarding and reduce the steps involved in starting pension savings.
Pension Contributions Through UPI
After opening the account, workers would be able to make pension contributions using UPI.
The proposed process is also expected to support multiple Indian languages, which could make pension products easier to understand and access.
PFRDA has already introduced NPS Tatkal, which operates through UPI providers.
The regulator is now exploring a broader system that can bring more informal-sector workers into formal pension savings through a mobile-based process.
Who Can Open an NPS Account
Under the existing NPS All Citizen Model, Indian citizens and OCIs aged 18 to 85 can voluntarily subscribe to NPS, subject to KYC requirements.
Accounts can currently be opened through registered Points of Presence or the online eNPS platform.
PFRDA has also introduced NPS Sanchay, a simplified NPS variant aimed at improving access for the informal sector.
The scheme is available under the All Citizen Model and is designed to reduce complexity around investment choices.
PFRDA’s Other Pension Initiatives
The regulator is also working on a guaranteed-return pension product for the non-government sector.
An expert committee has been constituted to examine possible products, although questions around who would provide the guarantee remain.
PFRDA is also preparing NPS Swasthya, which is designed to allow subscribers to use a portion of their pension savings for hospitalisation expenses, with a linked top-up insurance facility covering the remaining amount.
