Your bank account could soon help you open an NPS account through UPI: Here's what PFRDA plans

"In a growing economy, the kind of need for long-term savings from a customer point of view, from a citizen point of view, gives us an estimation that we probably in 2040 will be at a Rs 100 lakh crore AUM," he said.

UPI could make opening an NPS account easier

Ramann said the idea is to make customer acquisition virtually cost-free for banks by using their existing digital infrastructure.

He added that the proposed mechanism would allow banks to receive new NPS accounts through existing digital flows without requiring significant additional manpower or infrastructure.

The regulator believes banks can play a significant role in expanding NPS participation because of their extensive customer base and established digital platforms.

NPS distributors see improved earnings

PFRDA is also working to make pension distribution more commercially attractive.

Ramann said revenues of the top 10 Points of Presence (POPs), which distribute NPS products, have increased four to five times following changes in the commission structure introduced from January 1, 2026.

The move is aimed at encouraging more intermediaries to participate in NPS distribution.

Investors could get more equity investment options

Apart from expanding enrolment, PFRDA is looking to introduce differentiated investment schemes and asset allocation choices to cater to subscribers with varying financial needs and risk appetites.

Such options could provide greater flexibility to investors seeking market-linked growth for their retirement savings, although higher equity exposure also carries greater market risk.

Pension money may flow into infrastructure and unlisted equity The regulator is also examining opportunities to diversify pension fund investments into growth-oriented assets.

These include unlisted equity, project finance, Greenfield and Brownfield projects, alongside existing investments in Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs), Ramann said.

The broader objective is to channel more long-term pension savings into productive investments while expanding the range of opportunities available to pension funds.

Ramann said expanding pension coverage is also important to address longevity risk and ensure people have adequate savings to support themselves after retirement.

For subscribers, the proposed digital enrolment push and wider investment choices could make NPS more accessible. However, the proposed UPI-based enrolment mechanism and new investment options should not be assumed to be immediately available.

-With PTI inputs_