The Pension Fund Regulatory and Development Authority (PFRDA) has confirmed that its NPS Swasthya pension product will launch within the next 30 days, with final guidelines expected to be released in a few days. As reported by Zee News, PFRDA Chairman Sivasubramanian Ramann announced that the product has received a very encouraging response during its proof of concept phase, which has led to finalising the product. The Central Recordkeeping Agencies (CRAs) are already working on the technology required for the product, with the launch timeline confirmed during the Global Fintech Fest 2026. The scheme would allow subscribers to use part of their pension savings toward hospitalisation expenses, with a linked top-up insurance facility covering the remaining amount.
The Pension Fund Regulatory and Development Authority (PFRDA) is developing a technology-driven mechanism that could allow workers registered on the e-Shram database to open pension accounts through mobile phones and make contributions using UPI. As reported by PTI, PFRDA Chairperson Sivasubramanian Ramann announced that the regulator is exploring a simplified digital process using information already available on the government's e-Shram database. "We are, therefore, looking at how people, who are already registered on the database, can be enabled to open pension accounts through a simple, few-click process on their mobile phones," Ramann said. The initiative is specifically aimed at expanding pension coverage among the large informal workforce, a significant proportion of which does not have a regular monthly salary or pay income tax. Once the account is opened, subscribers would be able to use UPI to make pension contributions, making it easier for informal-sector workers to save for retirement. The service is also expected to be available in multiple Indian languages to enhance accessibility.
The Pension Fund Regulatory and Development Authority (PFRDA) has established a committee of experts to work on a guaranteed-return scheme for non-government employees, as mandated under the PFRDA Act. According to The Economic Times, PFRDA Chairperson Sivasubramanian Ramann announced that the regulator is working with an expert panel on multiple products that will eventually lead up to a fully guaranteed offering. Chairman Ramann noted that the most difficult part is determining who would provide the guarantee when creating pension products for the non-government sector, which is where the expert body is actively working. The regulator is looking at multiple products leading up to a guaranteed product, with the framework for managing the risks associated with assured returns yet to be finalised. As reported by PTI, an expert committee has been constituted to examine possible products, though a key challenge is determining who would provide the guarantee, unlike the Unified Pension Scheme for government employees, which has a built-in guarantee mechanism.
NPS Swasthya is a health-focused pension product under the National Pension System (NPS) that allows subscribers to set aside a portion of their retirement corpus toward medical expenses. As reported by Zee News, the product has been tested under the proof of concept and received a positive response, with the final guidelines expected to be released in a few days. The scheme is structured to invest a part of your pension savings for healthcare needs which may arise as an emergency at any time in the future, while the remaining amount continues to accrue interest as per market rates. NPS Swasthya includes a provision for health-insurance top-up, which provides coverage when the funds in the health-focused pension product are exhausted, with the premium for this insurance paid from the NPS Swasthya account. Chairman Ramann explained that the settlement of medical expenses is done by streamlining the system to work directly between the subscriber's pension account, the insurance company, and the hospital. The framework aims to create a pool for medical expenses from within the NPS funds, with subscribers potentially multiplying their money based on market returns if they don't require healthcare expenses.
The PFRDA currently oversees significant pension assets, with the National Pension System (NPS) and Atal Pension Yojana (APY) having assets under management of ₹17.6 lakh crore and ₹58,000 crore, respectively. As reported by The Economic Times, the regulator is focusing on bringing India's large non-taxpaying, informal workforce, nearly 90 per cent of all working people, into the pension net through technology. The regulator has already launched NPS Tatkal, which operates through UPI providers, as part of efforts to create a more accessible pension system. The initiative plans to leverage the labour ministry's e-Shram database to help workers open pension accounts digitally and make contributions through UPI, aimed at bringing a larger share of India's informal workforce into the pension system.
The PFRDA has been working on a 'Minimum Assured Return Scheme' (MARS) for the National Pension System (NPS), but the scheme has not been launched. As reported by Business Standard, the regulator is currently not using derivatives but is exploring that opportunity with regulators. The source explained that the use of forward rate agreements (FRAs) is evolving in the industry, and pension funds may eventually get access to derivatives, but they need to build systems to use them effectively. The regulator aims to maintain the low-cost discipline of NPS operations, as hedging and other mechanisms are likely to make the product expensive.
Bank of Baroda has received in-principle approval to set up a pension fund subsidiary, taking the total to 14 pension funds once the four new entities, approved over and above the existing 10, are operational. According to Business Standard, current investment guidelines allow pension funds to allocate up to 1 per cent to commodities like gold, with one or two funds having already done so, as part of a broader push towards asset diversification. The regulator continues to explore various product innovations to address the evolving needs of India's growing pension market and provide subscribers with more predictable and secure retirement income options.
