PFRDA Chairman S Ramann confirmed that NPS Swasthya will launch formally within 30 days, with final guidelines expected to be issued in the next few days. Speaking to reporters on the sidelines of the Global Fintech Fest 2026, Ramann stated that the product has already been tested under a proof of concept (PoC) and received an encouraging response. The Central Recordkeeping Agencies (CRAs) are currently working on the required technology, with the formal launch expected in mid-October 2026. As per ANI, Ramann emphasized that the product is right now a proof of concept, and we are working on it. The proof of concept worked very well, and that's what has led us to finalise the product.
NPS Swasthya allows subscribers to withdraw up to 25% of their own contributions at any time for medical expenses, with no restriction on the number of partial withdrawals and no minimum waiting period. However, the first partial withdrawal can only be made after the scheme corpus reaches at least ₹50,000. Subscribers can make partial withdrawals from the Swasthya account to meet both outpatient and inpatient medical expenses. The scheme also includes a special provision for critical treatment where if inpatient medical expenses exceed 70% of the total corpus in a single instance, subscribers can make a premature exit and withdraw 100% as a lump sum for medical expenses, provided the amount is used solely for those medical expenses.
The Pension Fund Regulatory and Development Authority (PFRDA) is developing a mobile-based pension account system specifically designed for informal workers, according to chairperson Sivasubramanian Ramann. As reported by Mint, this initiative aims to enable small, regular contributions through a simplified digital process, potentially making formal retirement savings more accessible to workers outside the organised workforce. The system will utilize the e-Shram database to streamline account setup, allowing subscribers to open pension accounts through a few-click process on their mobile phones. Speaking at the Global Fintech Fest 2026, Ramann emphasized that the move would be aimed at expanding pension coverage among the large informal workforce, noting that a number of these workers do not receive regular monthly salary or pay income tax.
Any Indian citizen can join the NPS Swasthya Pension Scheme, with subscribers required to open a Common Scheme Account along with the Swasthya account if they don't already have one. Subscribers can contribute any amount according to existing NPS guidelines applicable to the non-government sector, with contributions invested by pension funds according to investment guidelines under the MSF. For subscribers above 40 years, excluding government-sector and government-owned company subscribers, up to 30% of their own and/or employee contributions can be transferred from the Common Scheme Account to the NPS Swasthya account. The scheme is designed to be contributory and voluntary, initially operating for a limited period with restricted subscriber registrations as a proof of concept.
NPS Swasthya includes a health insurance top-up facility where the insurance premium is deducted from the NPS Swasthya account. The top-up insurance could be roughly eight to ten times the initial contribution, creating a dedicated pool for healthcare expenses within the pension framework. The proposed payment system is designed to work directly between the subscriber's pension account, the insurance company and the hospital, helping streamline settlement of medical expenses. The scheme will be operated by pension funds with support from Central Recordkeeping Agencies and Health Benefit Administrators/Third Party Administrators, with the PFRDA requiring clear disclosure of benefits, charges, claims, grievance redressal and exit provisions.
