The development comes after NPS Swasthya was introduced as a proof of concept under PFRDA’s regulatory sandbox framework in January 2026. PFRDA subsequently introduced a second phase of the proof of concept in April before issuing the operational guidelines for NPS Swasthya under the National Pension System on September 18.
The operational framework was formally highlighted on October 1, NPS Diwas, with Union Secretary, Department of Financial Services, Sanjay Lohia launching the initiative.
NPS Swasthya combines an NPS Swasthya investment account with a separate, mandatory top-up health insurance policy. The framework allows subscribers to withdraw up to 25% of their own contributions for eligible outpatient and inpatient healthcare expenses.
There is no cap on the number of withdrawals or a minimum waiting period between withdrawals. Payments for eligible healthcare expenses are made directly to the healthcare provider.
Medi Assist, as the HBA, will provide the digital infrastructure for subscribers, healthcare providers, Central Recordkeeping Agencies (CRAs), pension funds and insurance companies. Subscribers will be able to access their NPS and NPS Swasthya account information and health benefits through Medi Assist’s MAven app, which is integrated with the CRA API.
The HBA will also coordinate with pension funds and insurance companies for health-benefit administration and related claims services.
The framework includes provisions governing the sharing of subscriber information. Data can be shared where it is necessary, proportionate and linked to a specific purpose, based on the subscriber’s recorded consent or another lawful basis.
For grievance redressal, subscribers will have a single point of contact through PFRDA’s Pension Sahayak platform for issues involving Pension Funds, CRAs, the HBA and insurers.
Satish Gidugu, CEO, Medi Assist Group, said the company’s role would involve supporting coordination between the pension and healthcare ecosystem and simplifying the subscriber experience.
Sumit Shukla, MD & CEO, Axis Pension Fund, said healthcare costs are an important consideration in retirement planning and that NPS Swasthya provides a dedicated corpus for medical needs within the NPS framework.