PFRDA Aims to Increase Non-Government NPS Subscribers from Current 90 Lakh to 5 Crore

The National Pension System (NPS) is witnessing a major expansion phase as the Pension Fund Regulatory and Development Authority (PFRDA) focuses on increasing participation among non government subscribers through digital initiatives and wider accessibility. 

PFRDA Sets Target of 5 Crore Non-Government NPS Subscriber 

According to The Hindu BusinessLine, PFRDA has set a target of taking the non-government NPS subscriber base to 5 crore this financial year from around 90 lakh currently. The growth strategy includes platforms such as Tatkal NPS developed with NPCI and STAR NPS created with BSE Technologies. 

“These two new platforms [Tatkal NPS and STAR NPS] are, in a way, out, and a few banks have initially started testing it. It’s in what we call a live testing phase,” he said. 4 big banks are currently testing it and reporting bugs, and we have 22 banks who are integrating with the system, and in the next 45 days, all these banks should be ready too, PFRDA Chairperson Sivasubramanian Ramann, told media in a select interaction on Friday. 

NPS Digital Onboarding and Customer Access 

STAR NPS enables paperless KYC verification and registration through pension agents, while Tatkal NPS allows quick KYC verification and instant generation of Permanent Retirement Account Number. PhonePe, with around 65 crore customers, is also preparing to operate on Tatkal NPS, which could increase access to digital pension services. 

The current NPS assets under management stand at about ₹18.4 lakh crore. 

NPS Expands Investment Options 

PFRDA is also broadening the asset classes available under NPS by allowing greater exposure to REITs, InvITs and Alternative Investment Funds. Non government NPS funds can allocate up to 5% of their equity portfolio to AIFs. 

The NPS Bharat Fund of Funds has been created to channel pension capital into alternative investments. The initiative is managed by the NPS Trust, with investments expected to begin after evaluation of applications. 

NPS Coverage Among New Worker Groups 

The new NPS e-shramik model for platform workers has reached approximately 1,00,000 subscribers, with assets under management gradually building. 

Read More:NPS e-Shramik: PFRDA Allows Platform Workers to Contribute ₹99 Without Fixed Limits! 

Conclusion 

The expansion of NPS reflects efforts to increase pension participation through digital platforms, diversified investment avenues and inclusion of newer subscriber groups. 

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