Mumbai: The Pension Fund Regulatory and Development Authority (PFRDA) is looking to use India's growing UPI network and banking infrastructure to expand the National Pension System (NPS), with an ambitious target of taking its assets under management (AUM) to ₹100 lakh crore.
Addressing senior banking officials, PFRDA Chairman Shri S. Ramann said the regulator wants to make NPS more accessible through existing digital payment platforms, allowing customers to begin their retirement savings journey through a simple digital process.
The proposed model will use UPI platforms to generate customer interest in NPS, while banks will receive new customer accounts through their existing banking infrastructure. According to the PFRDA chief, this could help banks acquire NPS customers without additional customer acquisition costs.
The regulator is also working with the National Payments Corporation of India (NPCI) to create a digital bridge between UPI providers and banks. The process is expected to make account opening easier by using existing customer details, including mobile numbers and dates of birth.
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PFRDA Wants to Achieve ₹100 Lakh Crore Target Ahead of 2040
PFRDA Chairman S. Ramann clarified that the ₹100 lakh crore AUM target by 2040 is based on the current growth trajectory and the digital infrastructure already developed by the regulator. He said this growth could happen organically if the existing momentum continues, but PFRDA wants to accelerate the process and achieve the target even before 2040.
He emphasised that the next phase of growth will depend on reaching more people and making them understand why NPS is an important retirement savings product. The regulator believes wider awareness, easier access and stronger distribution channels will be key to expanding the pension system.
NPS assets currently stand at more than ₹18 lakh crore, and the regulator is looking to significantly expand this base through digital initiatives and wider participation.
Another key development is the improvement in distribution economics for banks. The PFRDA chief said that following changes in the commission structure from January this year, the top 10 Points of Presence (POPs) have reported a four to five times increase in revenue compared with the previous year.
The regulator also highlighted the need to improve customer servicing through NPS Central, a platform designed to help subscribers manage services such as changes in personal details and other account-related requirements.
PFRDA is also looking to expand investment options under NPS, including schemes with higher equity exposure for investors who are comfortable with market-linked returns. The regulator believes greater exposure to growth assets can help improve long-term retirement savings.
Through initiatives such as the NPS Bharat Fund of Funds, the regulator also aims to channel more pension money into alternative investment funds and India's infrastructure and growth sectors.
The larger objective is to make NPS a wider retirement savings product while creating a long-term pool of domestic capital to support India's economic development.
