The Pension Fund Regulatory and Development Authority (PFRDA) has announced its ambition to reach a pension corpus of Rs 100 lakh crore well ahead of 2040. PFRDA Chairman S Raman made this statement during a media interaction at the ‘Leadership Event on NPS Tatkal’ held in Mumbai on Wednesday.
He explained that NPS Tatkal enables pension accounts to be opened with just three clicks using bank KYC data, and even small deposits of ₹10 can be made to the NPS via UPI. The regulator anticipates adding between 40 million and 50 million subscribers within the next two to three years.
No need to wait until 2040; the target of 100 lakh crore is aimed for earlier
According to reports, S. Raman mentioned that at the current growth rate, the pension corpus is projected to reach ₹100 lakh crore by 2040. However, the regulator intends to achieve this milestone much sooner. He stated, “The way the NPS is growing, Rs 100 lakh crore will come automatically.”
He attributed this goal primarily to the digital platform PFRDA is developing and the public awareness initiatives underway. Raman also emphasised that these efforts must be sustained annually; it is not feasible to make a single-year push and then cease.
Pension funds as a pillar of national infrastructure
S. Raman further connected the expansion of the pension corpus with the country’s infrastructure development and economic progress. He noted that in many countries, pension funds constitute a major source of infrastructure investment.
Therefore, he argued that investments made through NPS funds also play a role in nation-building. This implies that a worker’s modest savings not only provide financial security in retirement but also support investments in national projects such as roads. Raman asserted that both objectives should be pursued simultaneously.
The simplest savings option for gig and informal sector workers
The PFRDA Chairman placed particular emphasis on extending pension coverage to low-income individuals, workers in the unorganised sector, and gig workers. He pointed out that for those without regular salaries, maintaining cash liquidity is vital, making saving challenging.
For these groups, the convenience and flexibility of making deposits can foster a habit of saving for retirement. Raman said, “For low-income individuals, those in the unorganised sector, and gig workers, we will make NPS the easiest place to save.”
Rs 10 via UPI, Rs 250 minimum at account opening
S. Raman stated that contributions as small as Rs 10 can be made daily, or even every hour via UPI, entirely at the depositor’s discretion, as NPS now imposes no transaction fees. Even depositing ₹10 daily would add Rs 300 to the pension account over 30 days. He clarified that Rs 10 is the minimum amount per contribution, while the minimum amount required to open an NPS account is Rs 250. According to Raman, cultivating the discipline of saving is more important than the contribution amount itself.
Get your NPS in three clicks, account ready in 10 seconds
The process of opening an NPS Tatkal account has been simplified. According to Raman, customers will be able to open a pension account through their existing banking and UPI systems, without having to re-enter their personal information. He explained that the motto is, “Own NPS in three clicks.”