PFRDA seeks wider NPS reach through StAR platform; chairperson calls National Pension Sytem an 'income asset'

Addressing participants at a StAR NPS event in Bengaluru on October 24, 2026, the PFRDA Chairperson highlighted the role of NPS in retirement planning and said the platform could help bridge the gap between regulated retirement solutions and citizens' access to them.

“NPS is not a capital asset but an income asset,” the Chairperson said, adding, “Illiquidity is as important as liquidity.”

What is StAR NPS?

PFRDA said mutual fund distributors, Primary Agricultural Credit Societies (PACS), banking correspondents, non-banking financial companies (NBFCs) and other eligible entities and individuals can distribute NPS through the platform.

The regulator said the platform's digital infrastructure is intended to reduce customer onboarding costs and make distribution easier beyond major urban centres. PFRDA has also envisaged higher incentives for distributors using StAR NPS than for channels where the effort involved is comparatively lower.

The regulator said it would work with BTPL to provide distributors with operational efficiencies comparable to those offered by registrar and transfer agents such as CAMS and KFin Technologies. It has also invited feedback from distributors.

PFRDA highlights NPS features for retirement income

The Chairperson's remarks focused on the role of NPS in generating income during retirement. According to the release, the system combines equity-led growth over long investment horizons with a retirement-oriented structure and tax-efficiency advantages, subject to applicable provisions.

• Membership age: NPS membership is now allowed up to 85 years of age.

• Retirement payouts: The Systematic Payout Rate and Systematic Unit Redemption facilities under the Retirement Income Scheme provide a systematic flow of income in retirement.

• NPS Vatsalya: The scheme extends planning to children.

• NPS Swasthya: Pension funds acting as master policyholders can potentially reduce premium costs.

PFRDA said more than 400 outreach programmes conducted over the preceding 12-15 months had revealed growing interest in equity products in smaller towns. The regulator also pointed to the continuing threat posed by Ponzi schemes.

StAR NPS is intended to enable distributors with local relationships to bring regulated retirement products to people outside the organised pension ecosystem.

The release also stated that reforms in NPS contributed approximately 23 lakh enrolments over the preceding year, accounting for nearly 23% of NPS enrolments in the non-government sector since the system's launch in 2009.

With India's working population approaching 70 crore, the chairperson urged distributors to consider the platform as an opportunity to expand their businesses while extending long-term retirement security to more Indians. The Chairperson also cautioned against mis-selling.

The announcement comes as PFRDA seeks to widen pension participation beyond the existing organised pension ecosystem.