India’s pension regulator aims to dramatically expand the non-government National Pension System to 5 crore subscribers this financial year, leveraging new digital platforms like Tatkal NPS and STAR NPS, and partnering with major players including PhonePe to facilitate faster enrollment and wider reach.
India’s pension regulator is aiming for a dramatic expansion of the non-government National Pension System this financial year, setting a goal of 5 crore subscribers from roughly 90 lakh now, as it pushes digital sign-up tools and broader distribution. Sivasubramanian Ramann, chairperson of the Pension Fund Regulatory and Development Authority, said the growth drive is being supported by two new onboarding routes, Tatkal NPS and STAR NPS, which are moving through live testing with banks. According to The Hindu BusinessLine, four large lenders are already trialling the system and another 22 are integrating it, with full readiness expected within about 45 days.
The regulator’s pitch is that the new platforms should make enrolment faster and easier for customers and intermediaries alike. STAR NPS, built with BSE Technologies, is designed for assisted, paperless onboarding through pension agents, including mutual fund distributors. Tatkal NPS, developed with the National Payments Corporation of India, is intended to speed up KYC checks and generate a permanent retirement account number almost instantly. Ramann also said PhonePe, which has about 65 crore customers, is preparing to come on board by the end of August, potentially opening a much wider retail channel for the pension system.
Mint reported earlier this month that PFRDA’s longer-term ambition is even larger, with a target of 35 crore to 40 crore non-government subscribers over five years. The regulator has also been widening the product set. It has approved four new pension funds, taking the total to 14, and is pressing ahead with new asset classes, including real estate investment trusts, infrastructure investment trusts and alternative investment funds. PFRDA has allowed up to 5% of the equity portfolio of non-government NPS funds to go into AIFs, compared with 1% for government funds, and has created the NPS Bharat Fund of Funds to route money into selected AIFs through a limited-partnership structure.
Ramann declined to give an AUM forecast for the year, but said contribution growth could rise by around 22%. The NPS now manages about ₹18.4 lakh crore in assets. Non-government accounts have climbed from about 72 lakh in October last year to 90 lakh now, a rise of roughly 25%. The regulator is also building out the NPS e-shramik model for platform workers, where enrolment has reached about 1 lakh subscribers and assets are beginning to accumulate.
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