PFRDA Launches ‘NPS Sanchay’ to Expand Pension Coverage for Informal Sector Workers

New simplified NPS variant aims to make retirement savings easier for India’s vast informal workforce

New Delhi: In a significant move aimed at expanding pension inclusion, the Pension Fund Regulatory and Development Authority (PFRDA) has introduced “NPS Sanchay”, a simplified variant of the National Pension System (NPS) under the All Citizen Model and Multi Scheme Framework (MSF). The initiative is designed primarily to improve pension accessibility among workers in India’s large informal sector.

The regulator noted that nearly 90% of India’s workforce is employed in the informal sector, which continues to remain outside the ambit of formal pension coverage despite its substantial contribution to the economy. With NPS Sanchay, PFRDA seeks to remove complexities that often discourage participation in pension schemes.

According to the circular issued on 6 May 2026, the new pension product has been structured with a simplified framework that reduces the burden on subscribers in selecting investment options and deciding asset allocation. The model is also intended to address the practical challenge of limited financial advisory support available at the last-mile level.

Who Can Join NPS Sanchay?

The scheme is open to all Indian citizens aged between 18 and 85 years. Eligible individuals may enroll either through a Point of Presence (PoP), PoP Service Provider, or through online platforms.

Subscribers will continue to be required to complete prescribed Know Your Customer (KYC) formalities and submit necessary documentation during registration.

Investment Pattern Aligned with Government-Sector Framework

PFRDA stated that the investment structure under NPS Sanchay will follow the existing investment guidelines applicable to Government Sector schemes. This includes frameworks presently used for Central and State Government NPS, Unified Pension Scheme (UPS), Atal Pension Yojana (APY), Corporate CG, and related schemes.

The regulator has also clarified that NPS Sanchay will be available across all Pension Funds registered with the Authority.

Exit and Withdrawal Rules to Remain Similar

The circular further clarified that existing provisions governing exits and partial withdrawals under NPS regulations will apply to NPS Sanchay as well. Therefore, subscribers will continue to operate under the broader regulatory structure already applicable to NPS participants.

Charges and Contributions to Follow Existing NPS Structure

PFRDA has decided that charges applicable under NPS Sanchay will mirror the fee structure currently prescribed for common NPS schemes including:

• NPS (All Citizen Model)
• NPS Vatsalya
• NPS Lite

Any future revisions or changes notified by the Authority will automatically become applicable to NPS Sanchay without requiring separate notifications.

Similarly, contribution requirements and minimum contribution norms are expected to remain aligned with existing common NPS structures unless specifically modified in the future.

Option to Change Pension Fund Available

Subscribers under the new scheme will retain flexibility regarding their pension choices. PFRDA has allowed subscribers to change their Pension Fund and modify asset allocation options according to regulations applicable under the All Citizen Model.

Scheme Effective Immediately

The circular has come into force with immediate effect, and stakeholders including Pension Funds, Points of Presence, recordkeeping agencies and intermediaries have been directed to undertake necessary preparatory measures.

The launch of NPS Sanchay signals another attempt by PFRDA to deepen pension penetration and make long-term retirement savings products simpler and more accessible, particularly for segments of the population traditionally underserved by formal financial systems.

Key Highlights at a Glance

• New simplified NPS variant launched as NPS Sanchay
• Designed especially for informal sector workers
• Open to Indian citizens aged 18–85 years
• Simplifies investment and asset allocation decisions
• Available through both offline and online channels
• Existing NPS withdrawal and exit rules continue
• Contribution and fee structures aligned with current NPS schemes
• Effective immediately

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