India’s pension regulator plans to attract up to 3 crore new NPS subscribers in the next two years by introducing a rapid, UPI-based sign-up process to reach workers in informal and rural sectors, simplifying retirement savings access nationwide.
India’s pension regulator expects the National Pension System to gain a substantial wave of new users over the next two years as it rolls out a faster digital sign-up process designed to reach workers outside the formal payroll economy. S. Ramann, chairperson of the Pension Fund Regulatory and Development Authority, said the new NPS Tatkal facility could bring in about 2 crore to 3 crore additional subscribers, with much of the growth likely to come from the non-government and informal sectors.
The scheme is intended to cut friction from the opening process by allowing people to enrol through a UPI-based application using existing bank know-your-customer, or KYC, information. Ramann described the facility as a “three-click account”, underlining the regulator’s aim of making retirement saving feel closer to ordinary digital payments than a lengthy financial onboarding exercise. According to Livemint, the launch began with the NPCI’s BHIM UPI app, and five banks, including State Bank of India, HDFC Bank, ICICI Bank, Axis Bank and IDFC First Bank, have already joined the initiative.
At present, the NPS has about 2.3 crore subscribers across government and non-government accounts, though public sector users still make up the larger share. To push the scheme beyond big cities, the regulator is also working with Common Service Centres and exploring links with Primary Agricultural Credit Societies, which could help bring the pension system into smaller towns and rural areas. That outreach matters because the informal workforce, which often lacks employer-backed retirement provision, remains a large untapped market.
The government is also signalling support for the push. Sanjay Lohiya, secretary in the Department of Financial Services, said the aim is to make NPS more accessible and to encourage retirement planning more widely among citizens. He said NPS is a flagship government programme and that the NPS Trust has already introduced measures to simplify access. Among them is NPS Sanchay, which offers a pre-set mix of equities, government bonds and corporate debt for people who do not want to choose asset allocations themselves. Ramann also said a forthcoming suitability platform will help subscribers assess their risk appetite before investing, part of a broader effort to improve financial literacy and awareness.
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