India now needs UPI for pensions: PFRDA’s S. Ramann charts roadmap at GFF 2025

Pension Fund Regulatory and Development Authority (PFRDA) chairperson S. Ramann said the regulator is launching a mission to make pensions as common as payments in India, aiming to include the next 300 million citizens in the National Pension System (NPS). Speaking at the Global Fintech Fest 2025, Ramann explained how the new Multi-Scheme Framework (MSF) would expand NPS access, encourage competition among pension funds, and create digital infrastructure for lifelong savings.

“India has built the world’s best rail for payments. Now we need a simple, open rail for how we retire,” Ramann said, stressing that the real challenge lies in reaching the private and informal workforce - an estimated 40–50 crore Indians who have never been part of any pension scheme.

Under the MSF, multiple pension funds can design and distribute their own schemes through a wider network of intermediaries. Each subscriber will be able to hold several schemes under one Permanent Retirement Account Number (PRAN).

Ramann noted that over 23 new pension products, including platform-worker and “golden-years” schemes, were launched by the finance minister on October 1.

He emphasised that fintechs would play a crucial role in broadening access: “We’d love fintechs to tell us how a shopkeeper can put ₹50 from a ₹1,000 QR-code payment straight into his NPS account.” Ramann added that the PFRDA is open to running hackathons to design micro-savings journeys that make pension investing as easy as digital payments.

Ramann outlined two key metrics to judge MSF’s success by 2027: Penetration into the informal sector and vulnerable groups. And scheme diversification per subscriber, with at least 15 years of vesting to harness compounding benefits.

He said subscribers can now stay invested till 85 and hold multiple schemes catering to different life stages, helping NPS evolve into a “cradle-to-grave” retirement solution.

The PFRDA has simplified KYC by adopting the national CKYC infrastructure and is pushing for interoperability across schemes. Ramann reiterated that NPS remains one of the lowest-risk financial products and hinted at upcoming tax reforms to make withdrawals up to ₹12 lakh tax-free for small savers.

Addressing one of NPS subscribers’ biggest pain points—mandatory annuities, Ramann said the regulator has issued a consultation paper proposing alternatives to annuity payouts, including inflation-indexed pension options and systematic withdrawal plans. “It’s our job to give choice to customers,” he said, adding that customer satisfaction would rise once flexibility replaces compulsion.

While encouraging innovation, Ramann cautioned against pension funds mimicking mutual funds. The PFRDA will continue to approve every scheme, ensure risk-appropriate defaults, and benchmark performance through CRISIL. The regulator is also examining whether commodities like gold and silver could be permitted within NPS investment guidelines.

He emphasised that PFRDA’s focus will remain on long-term stability, rather than short-term speculation. “We want competition—but fair and responsible competition,” he said.