PFRDA Chairperson Sivasubramanian Ramann said final guidelines for the product are expected in the next few days and that NPS Swasthya is likely to be rolled out shortly thereafter, according to PTI.
Here is what we know about NPS Swasthya so far:
What is NPS Swasthya?
NPS Swasthya is being developed to provide subscribers with a mechanism to use money accumulated in their pension account towards hospitalisation expenses.
The product will also have a linked top-up insurance facility, which will cover the remaining hospitalisation expenses, according to Ramann.
How will the hospitalisation cover work?
Under the proposed structure, subscribers will be able to use money set aside in their pension account to pay a portion of hospitalisation expenses. A linked top-up insurance facility would cover the remaining amount.
Ramann said the top-up insurance cover could be roughly eight to 10 times the initial contribution.
The exact conditions for using the pension money, the eligible hospitalisation expenses and other operational details are expected to become clearer once PFRDA issues the final guidelines.
When will NPS Swasthya launch?
PFRDA is expected to issue the final guidelines in the next few days, after which NPS Swasthya is likely to be rolled out, Ramann said at the Global Fintech Fest 2026 in Mumbai.
The regulator has not yet announced a specific launch date.
Has NPS Swasthya been tested?
Yes. PFRDA has already conducted a pilot of NPS Swasthya with two pension funds, according to PTI.
The regulator plans to eventually enable all pension funds to offer the product through tie-ups with insurance companies.
Will all NPS subscribers be able to access it?
PFRDA has not yet provided the complete eligibility and operational details for the product. These are expected to be specified in the final guidelines.
The regulator has indicated that the eventual offering will involve pension funds partnering with insurance companies for the top-up insurance component.
Why is the product significant for NPS subscribers?
NPS is primarily designed as a retirement savings product, with subscribers accumulating a corpus over their working years to generate income after retirement. NPS Swasthya would add a health-related component by allowing part of the pension savings to be used towards hospitalisation expenses, along with additional insurance protection.
The structure is therefore aimed at combining a portion of pension savings with insurance cover for healthcare-related expenses.
What is still awaited?
The final PFRDA guidelines are expected to provide greater clarity on the product’s eligibility criteria, contribution requirements, use of pension savings, insurance cover and other conditions.
Details such as the exact amount that can be withdrawn or used for hospitalisation, the circumstances in which the facility can be accessed and the terms of the linked insurance cover will need to be checked once the final framework is notified.
What else is PFRDA working on?
The NPS Swasthya launch comes as PFRDA is also working on other initiatives to expand pension coverage and make NPS more accessible.
According to PTI, the regulator is exploring a technology-driven mechanism that could allow workers registered on the e-Shram database to open pension accounts through their mobile phones. Once the account is opened, subscribers would be able to make contributions through UPI.
PFRDA has also already created NPS Tatkal, which operates through UPI providers and is aimed at simplifying pension account opening.
Separately, PFRDA is working on a guaranteed-return pension product for the non-government sector. Ramann said an expert committee has been constituted to examine possible products. A key issue being examined is who would provide the guarantee for such a product.
PFRDA is also looking at innovative bond issuances that could help generate inflation-protected outcomes for guaranteed pension products.
Meanwhile, Bank of Baroda has received in-principle approval to set up a pension fund, while four new pension funds have been added to the existing 10 pension funds, Ramann said, according to PTI.
