PFRDA to expand NPS coverage to include agri sector and gig workers

PFRDA Chairman S Ramann says the regulator aims to extend pension coverage through FPOs, self-help groups and fintech tie-ups, and may allow gold and silver investments

The Pension Fund Regulatory and Development Authority (PFRDA) is aiming to grow pension coverage in the country by focusing on the agriculture sector, self-help groups and gig workers, Chairman S Ramann said on Wednesday at the Global Fintech Fest 2025.

 

The pension regulator is also looking to allow investments in commodities like gold and silver for pension funds, post discussions with its internal committee.

 

“We have been very conservative regarding investment guidelines. We have now got a request from pension funds — including from other regulators — to allow commodities to be brought within the fold of these investment guidelines,” Ramann said.

 

Responding to a question on PFRDA's plans to achieve 100 million customers in the next 24 months, Ramann said, “We have a clear roadmap for this. It has already drawn out four different verticals in which to go deep and agri sector is one of them. We are working with it.

 

There are over 50,000 farmer producer organisations (FPOs). There are also many institutional systems running like self-help groups that want to improve their own savings and future.”

 

PFRDA is trying to access the agriculture sector through FPOs, each comprising 300–500 members.

 

The pension regulator plans to expand their reach beyond the formal, organised workforce and increase the number of schemes that people hold.

 

It wants people to diversify their investments and hold multiple schemes over long periods (minimum 15 years). This will help them realise the power of compounding, Ramann said. 

 

PFRDA is also open to innovation on various pension schemes targeting platform workers and is exploring ways which are within the long-term savings plans. Informal workers currently don’t have savings options, so PFRDA is exploring ways to bring them under pension coverage.

 

“We have already built a flexible architecture in the National Pension Scheme (NPS) system, allowing for interoperability and portability. The key challenge is distribution. We need to make sure that more people are aware of the NPS and are able to access it, especially through fintech platforms that already have large customer bases,” Ramann said.

 

PFRDA is also working on making the onboarding process smoother, especially for informal and platform workers like Uber and Urban Company employees attached to a digital platform.

 

Ramann believes that while NPS is an excellent product, the biggest challenge the industry faces is distribution. And, the fintech industry can help in reaching a large and diverse customer base.

 

He also said that he is working with fintech companies, banks, and digital platforms to integrate NPS into their customer bases.

 

Also, it is trying to make a better system by reducing complicated know-your-customer (KYC) processes.