PFRDA Launches NPS Sanchay Scheme for Informal Sector Employees, Aiming to Cover 90% of Indian Workers

The Pension Fund Regulatory and Development Authority (PFRDA) has launched NPS Sanchay, a simplified version of the National Pension System (NPS), designed to cater to informal sector employees.  

This section of the workforce comprises nearly 90% of Indian workers, who were previously without formal pension coverage. 

NPS Sanchay: Key Features  

NPS Sanchay is aligned under the All-Citizen Model and Multi Scheme Framework (MSF), presenting a straightforward approach to investment choices and asset allocation.  

Launched on May 6, 2026, the scheme is effective immediately as per the circulated information. 

Eligibility for Participation 

NPS Sanchay is open to any Indian citizen aged 18 to 85 with an existing National Pension System (NPS) account. Aspiring subscribers can open an account instantly online via the eNPS portal or KFintech, or offline by visiting a registered Point of Presence (POP-SP). 

Completion of the Know Your Customer (KYC) process is mandatory during the registration. 

Investment Strategies and Minimum Contribution 

The investment structure of NPS Sanchay follows the existing guidelines applicable to government sector pension schemes like the Unified Pension Scheme (UPS)/NPS/Atal Pension Yojana (APY).  

The contribution norms of NPS Sanchay align with those of other NPS common schemes, subject to periodic updates by PFRDA. 

Read More: NPS Gets Stricter: PFRDA Shifts to SEBI Norms on Insider Trading! 

Exit and Withdrawal Regulations 

The rules governing exits and partial withdrawals under NPS Sanchay mirror those of the current NPS frameworks. These rules incorporate any modifications introduced by the authorities. 

Fee Structure and MSF Framework 

The fee structure for NPS Sanchay is consistent with the charges for Point of Presence (PoP) services, similar to other common NPS schemes such as NPS (All Citizen), NPS Vatsalya, and NPS Lite. 

The Multi Scheme Framework (MSF) allows pension funds to launch new schemes under NPS Sanchay with specific investment patterns determined by the circular's provisions. 

Conclusion 

The NPS Sanchay scheme provides a viable option for India's informal sector workers to secure their future with a simplified pension plan. This initiative aims to extend pension coverage significantly, ensuring more workers are part of a structured savings plan. 

Want to read stock market updates in Hindi? Angel One News gives comprehensive share market news in Hindi. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.