Mumbai, September 10 (Daily Kiran) : During the Global Fintech Fest 2026 in Mumbai, PFRDA Chairman Shiv Subramaniam Raman announced significant advancements in pension coverage for India. He emphasized that technology will play a crucial role in extending pension services to millions working in the unorganized sector, who often lack regular employment. The PFRDA has developed the NPS Instant platform, designed to operate on a UPI-based digital framework.
Raman noted that Prime Minister Narendra Modi had previously highlighted the need for a straightforward and accessible pension system. The NPS Instant platform will enable users to open pension accounts through a few clicks on their mobile phones, with contributions made directly via UPI.
He mentioned that the Ministry of Labour’s e-Shram database will be instrumental in this initiative. This comprehensive and verified database contains most of the information needed to open pension accounts.
The goal of the PFRDA is to connect registered workers in the database to the pension system through a simplified digital process. To facilitate this, the authority is developing multilingual and user-friendly technological solutions, ensuring accessibility for people from various regions.
Raman explained that creating guaranteed return-based pension products is part of the PFRDA’s statutory responsibilities. The government has already included a guarantee mechanism in the Unified Pension Scheme (UPS) for government employees. However, he acknowledged that establishing a similar framework for the private sector poses significant challenges.
An expert committee is currently exploring various options in this regard. The PFRDA is working on multiple products that could serve as the foundation for guaranteed return plans in the future.
Additionally, Raman introduced an innovative product named “Health,” which has successfully passed its proof of concept. Final guidelines for this scheme will be issued soon, with a formal launch expected in about 30 days. This initiative aims to provide individuals with health security alongside their pension savings. In cases requiring hospitalization, participants can benefit from a top-up health insurance plan using their accumulated savings.
For instance, if someone incurs a hospital expense of ₹10,000, the top-up insurance could provide an additional coverage of ₹80,000 to ₹90,000. If no health expenses arise, the individual’s savings will continue to grow with market returns, leading to a substantial fund at retirement.
In a related discussion, SEBI Executive Director Maninder Chima noted the growing popularity of the bond market among retail investors, aided significantly by Online Bond Platform Providers (OBPP). He highlighted that bonds offering yields of 12% to 14% attract investor interest, but understanding the associated risks is essential before investing. Technology now allows investors to easily access information regarding bond quality, ratings, default risks, and other critical factors.
Chima cautioned that higher returns typically come with increased risks. Therefore, retail investors should gather comprehensive information before committing to any bond investment, rather than simply chasing high-interest rates.
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