PFRDA and Rural Development Department Sign MoU to Expand Pension Coverage Through Pension Sakhis in Rural Areas

The Department of Rural Development (DoRD) and the Pension Fund Regulatory and Development Authority (PFRDA) have signed a Memorandum of Understanding (MoU) to increase pension coverage among rural households, as per a PIB report. 

The agreement was signed by Amit Shukla, Joint Secretary, DoRD, and Sumeet Kaur Kapoor, Executive Director, PFRDA, in the presence of Rohit Kansal, Secretary, Department of Rural Development. 

Pension Sakhis for Rural Outreach 

The two departments will set up a community-based outreach system through ‘Pension Sakhis’ across rural India. The programme will use the existing network under the Deendayal Antyodaya Yojana-National Rural Livelihoods Mission (DAY-NRLM). 

This includes Banking Correspondent (BC) Sakhis and other trained community resource persons working with rural households. 

Help With Pension Enrolment 

Pension Sakhis will provide information on pension and retirement planning, help people with enrolment and assist with pension-related services after enrolment. 

The outreach will focus on Self-Help Group (SHG) members, rural women, Lakhpati Didis and other rural participants. 

NPS Awareness Included 

The partnership will also cover awareness of pension products, including the National Pension System (NPS). It is aimed at rural households that remain outside formal retirement and social-security arrangements. 

The use of the SHG network is intended to reach households that may have limited access to formal financial advice and retirement-planning services. 

Digital Tracking of Enrolment 

The participating institutions will use digital dashboards and mobile- and web-based systems to track outreach and enrolment. The Department’s LoKoS system will also be used. 

The digital systems will help track progress and identify areas where pension coverage remains limited. 

Focus on Clear Information 

Rohit Kansal said rural households involved in the SHG movement have different savings patterns, livelihood cycles, and risk profiles. He said social security is an important part of the Mission’s wider objective of sustainable prosperity. 

Kansal also stressed the need for honesty, transparency, and trust in pension awareness and financial literacy efforts, with rural citizens receiving clear information to make informed decisions. 

Retirement Planning 

Ms Mamta Shankar highlighted the importance of retirement planning as life expectancy rises and demographic patterns change. She also referred to the need to increase awareness of pension products among rural households. 

The MoU brings together PFRDA’s pension expertise and the community network built through DAY-NRLM, giving existing grassroots cadres an additional role in pension awareness and enrolment. 

Read More: Cabinet Clears 8 Rail Multitracking Projects Worth ₹20,804 Crore Across 9 States! 

Conclusion  

DoRD and PFRDA will use the existing NRLM network to improve access to pension information and services, with digital tools supporting the monitoring of outreach and enrolment. 

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