PFRDA aims to add up to 40 million NPS subscribers via digital expansion

The Pension Fund Regulatory and Development Authority (PFRDA) has announced a target to add three to four crore (30-40 million) new subscribers to the National Pension System (NPS) over the next few years. Chairperson Sivasubramanian Ramann stated that the authority intends to leverage digital platforms, wider distribution networks, and pension scheme reforms to increase accessibility.

Key initiatives include the promotion of ‘Star NPS’, developed by BSE Technologies, to expand the network of pension agents, and ‘Tatkal NPS’ to facilitate digital account opening through banks and UPI platforms. To further diversify the system, the PFRDA is promoting ‘NPS Vatsalya’ for children's savings and ‘NPS Swasthya’, which integrates pension savings with health insurance.

Proposed reforms include allowing non-government subscribers to continue investing until age 85 and offering greater flexibility for scheme exits. Additionally, pension funds may offer schemes with up to 100% equity exposure. To address distribution challenges, the PFRDA is engaging mutual fund distributors (MFDs) to reach more households, utilizing digital tools to reduce customer acquisition costs.