New Delhi, February 14:
In a major step towards expanding pension coverage and making the National Pension System (NPS) more accessible, UPI users will soon be able to open their NPS accounts simply by scanning a QR code, according to the Pension Fund Regulatory and Development Authority (PFRDA).
PFRDA Chairman Sivasubramanian Raman announced on Friday that the regulator is working on simplifying onboarding for NPS subscribers through digital platforms. He said the initiative could potentially benefit more than 80 crore UPI users, as most of them already have KYC records available with banks.
NPS Account Opening in Just Three Steps
Raman revealed that the process will soon be made extremely simple. With the help of the NPCI’s UPI platform, users will be able to open an NPS account in just three steps, using third-party UPI apps.
Since UPI-linked users already have verified identity details through banks, digital enrollment into NPS can be done quickly and efficiently, significantly reducing paperwork and delays.
Pension Plans with Health Cover Under Development
The PFRDA Chairman also stated that three pension fund companies are currently working on introducing new schemes that will combine pension benefits with health cover.
He explained that the health cover component may be offered either:
- through partnerships with insurance companies, or
- directly via hospitals and healthcare networks.
This move is expected to make NPS more attractive, especially for senior citizens and individuals seeking long-term financial security along with medical support.
Introduction of a Special ‘Health Box’ Feature
One of the key upcoming features in NPS is a dedicated “Health Box” facility, which will allow subscribers to use funds as a top-up support for hospital expenses in addition to regular health insurance.
Raman said this could become a crucial support system for elderly individuals, who often face difficulty in purchasing new health insurance policies due to age-related restrictions.
More Flexibility in Pension Payout Options
The PFRDA Chairman further revealed that NPS subscribers will soon get two payout choices. Those who do not wish to purchase an annuity will be offered a pension payout option with a minimum assured return.
These changes are being introduced mainly to encourage greater participation from self-employed individuals, who are currently underrepresented in pension schemes.
Expansion Through Multiple Scheme Framework
Raman also highlighted that the regulator has received strong response for the Multiple Scheme Framework, which was introduced in October. He added that this development is likely to expand NPS distribution channels significantly.
He noted that many large banks are now viewing pension fund management as a promising revenue segment and are expected to play a bigger role in increasing NPS subscriptions.
More Investment Options Under Consideration
In addition, PFRDA is exploring new investment opportunities for NPS, including options similar to Alternative Investment Funds (AIFs). The regulator is considering including other asset classes such as:
- real estate
- project finance
- and other alternative investment avenues
A Big Push Towards Pension Inclusion
With QR-based onboarding through UPI and the introduction of health-linked pension products, PFRDA aims to make NPS more user-friendly and widely adopted.
Experts believe this digital expansion could bring millions of new users into the pension system and strengthen long-term retirement security across India.
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