Introduced under the All Citizen Model and the Multiple Scheme Framework (MSF), the scheme aims to make pension investing easier for first-time and non-salaried investors.
PFRDA said India’s informal sector employs nearly 90% of the country’s workforce but remains largely outside formal pension coverage. Through NPS Sanchay, the regulator aims to simplify the onboarding and investment process for individuals who may not be familiar with financial products or investment planning.
The authority said the scheme’s default structure is designed to reduce complexities linked to selecting investment options and deciding asset allocation. It also seeks to address the lack of advisory support at the last-mile level, particularly in semi-urban and rural areas.
Who can open an NPS Sanchay account?
According to PFRDA’s circular, any Indian citizen between the ages of 18 and 85 years can enrol in NPS Sanchay. Subscribers can open the account either through registered Points of Presence (PoPs) and PoP-Service Providers (PoP-SPs) or through online platforms.
Like other NPS schemes, investors will have to complete Know Your Customer (KYC) formalities and submit the required documents at the time of registration.
How will the scheme invest money?
PFRDA said the investment pattern under NPS Sanchay will follow the existing guidelines applicable to government-sector pension schemes. These include schemes linked to central and state government NPS accounts, the Unified Pension Scheme (UPS), Atal Pension Yojana (APY), NPS Lite and certain corporate government-linked schemes.
The regulator added that all pension funds registered with PFRDA will be allowed to offer the scheme.
Will subscribers get flexibility in choosing pension funds?
While NPS Sanchay comes with a simplified default structure, subscribers will still have the option to change their pension fund manager and modify asset allocation or investment choice later.
These changes will be governed by the regulations applicable to the All Citizen Model under NPS.
What are the withdrawal and exit rules?
The regulator said the existing rules governing exits and withdrawals under the National Pension System will apply to NPS Sanchay as well. This means subscribers will continue to be covered under the provisions of the Pension Fund Regulatory and Development Authority (Exits and Withdrawals under the National Pension System) Regulations, 2015, along with any future amendments.
What charges and contribution rules will apply?
PFRDA said the charge structure for NPS Sanchay will remain aligned with existing common NPS schemes such as NPS All Citizen, NPS Vatsalya and NPS Lite. Any future changes notified by the authority will automatically apply to the scheme.
Similarly, minimum contribution requirements and rules governing subsequent contributions will also remain in line with existing NPS frameworks unless the regulator specifies otherwise.
What is the Multiple Scheme Framework?
Under the Multiple Scheme Framework, pension funds can introduce different schemes while retaining most conditions applicable under the broader NPS structure. However, the investment pattern may vary depending on the guidelines specified by the regulator.
Why does the launch matter?
The introduction of NPS Sanchay reflects PFRDA’s broader push to deepen pension penetration among workers who remain outside formal retirement savings systems. By simplifying investment choices and lowering operational complexity, the regulator aims to encourage participation from informal-sector workers and improve long-term social security coverage in the country.
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