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PFRDA plans mobile-based pension accounts for informal workers with UPI contributions

Upstox
By Upstox News Desk

2 min read | Updated on September 11, 2026, 08:15 IST

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SUMMARY

Once the account is opened, subscribers would be able to use UPI to make pension contributions, making it easier for informal-sector workers to save for retirement.

PFRDA plans mobile-based pension accounts for informal workers

PFRDA has already launched NPS Tatkal, which operates through UPI providers, as part of efforts to create a more accessible pension system.

The Pension Fund Regulatory and Development Authority (PFRDA) is working on a technology-driven mechanism that could allow workers registered on the e-Shram database to open pension accounts through their mobile phones and make contributions using UPI, PTI reported.
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Pension accounts through mobile phones

PFRDA Chairperson Sivasubramanian Ramann said the regulator is exploring a simplified digital process using information already available on the government’s e-Shram database.

“We are, therefore, looking at how people, who are already registered on the database, can be enabled to open pension accounts through a simple, few-click process on their mobile phones,” Ramann said, according to PTI.
Once the account is opened, subscribers would be able to use UPI to make pension contributions, making it easier for informal-sector workers to save for retirement.
According to PTI, the initiative is aimed at expanding pension coverage among the large informal workforce, a significant proportion of which does not have a regular monthly salary or pay income tax. The service is also expected to be available in multiple Indian languages.
PFRDA has already launched NPS Tatkal, which operates through UPI providers, as part of efforts to create a more accessible pension system.

Guaranteed-return pension product

PFRDA is also working on a guaranteed-return pension product for non-government subscribers. Ramann said an expert committee has been constituted to examine possible products.

However, a key challenge is determining who would provide the guarantee, unlike the Unified Pension Scheme for government employees, which has a built-in guarantee mechanism.

NPS Swasthya wide launch expected soon

PFRDA is also preparing to launch NPS Swasthya, which would allow subscribers to use part of their pension savings toward hospitalisation expenses. A linked top-up insurance facility would cover the remaining amount.

The final guidelines for the product are expected shortly, with the rollout likely to follow soon.

In January 2026, PFRDA launched NPS Swasthya inside the NPS framework as a sandbox experiment. It has been running as a limited Proof of Concept (PoC) under the PFRDA Regulatory Sandbox framework with select pension funds. ICICI Prudential Pension Fund went first in February under the original experiment. Tata & Axis Pension Fund followed in April with the updated version.

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Upstox
Upstox News Desk is a team of journalists who passionately cover stock markets, economy, commodities, latest business trends, and personal finance.

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