In order to support India’s informal sector employees who account for almost 90% of the total workforce, the Pension Fund Regulatory and Development Authority (PFRDA) has launched the NPS Sanchay.
NPS Sanchay, a simplified variant of National Pension System (NPS), falls under the All Citizen Model and MSF Framework. It aims to simplify the process of choosing investment options and figuring out asset allocation for the informal sector employees.
According to the PFRDA circular on May 6, 2026, “The default design of this scheme is intended to reduce complexities associated with selection of investment options and determination of asset allocation, while also addressing constraints arising from limited advisory support at the last-mile level.”
This circular will come into effect from today (May 6, 2026).
Who is eligible to invest in NPS Sanchay?
Any citizen of India aged between 18 and 85 years on the date of submission of the application is eligible to open a pension account and opt for NPS Sanchay.
Focus on informal sector workers
NPS Sanchay targets India’s large informal workforce, which accounts for nearly 90% of total workforce but lacks formal pension coverage, as per the circular.
KYC requirements for NPS Sanchay
Subscribers must complete KYC by submitting the required documents as per the Subscriber Registration Form (SRF).
What will be the investment pattern in NPS Sanchay?
The investment pattern for this scheme will be consistent with the existing investment guidelines for government sector schemes, such as Unified Pension Scheme (UPS)/NPS/Atal Pension Yojana (APY) schemes.
Minimum contribution rules aligned with existing schemes
The circular says that contribution requirements of NPS Sanchay will follow the norms applicable to existing NPS common schemes unless changed later by PFRDA.
NPS Sanchay: What are the exit and partial withdrawal rules?
The exit and withdrawal rules for NPS Sanchay will be the same as those of the existing NPS, including any updates or changes made by the authorities from time to time.
NPS Sanchay charge structure
The charge structure applicable to NPS Sanchay will be the same as that prescribed for Point of Presence (PoP) services under the common schemes of NPS, including NPS (All Citizen), NPS Vatsalya and NPS Lite.
NPS Sanchay minimum contribution
The minimum contribution and subsequent contributions of NPS Sanchay will be the same as those prescribed for Point of Presence (PoP) services under the common schemes of the NPS, including NPS (All Citizen), NPS Vatsalya and NPS Lite.
MSF schemes allowed in NPS Sanchay
Pension funds can launch schemes under the Multi Scheme Framework (MSF), with investment patterns governed by this circular.
As per the PFRDA circular, “Pension Funds shall be permitted to launch schemes under the Multi Scheme Framework (MSF), as may be prescribed by the authority from time to time, subject to the condition that all terms and conditions governing such schemes shall remain identical in all respects to those applicable under the existing framework, save and except the investment pattern, which shall be governed exclusively by and construed in accordance with the provisions specified.”
