Source: BS
Context:
The Pension Fund Regulatory and Development Authority (PFRDA) is targeting significant expansion of pension coverage in India, with a focus on underserved sectors such as agriculture, self-help groups (SHGs), and gig/platform workers. The announcement was made by PFRDA Chairman S. Ramann at the Global Fintech Fest 2025.
Key Highlights
- Target Groups:
- Agriculture Sector: Collaborating with 50,000+ Farmer Producer Organisations (FPOs), each with 300–500 members, to provide pension coverage.
- Self-Help Groups (SHGs): Encouraging institutional savings and long-term financial planning.
- Gig/Platform Workers: Exploring schemes tailored for workers on digital platforms like Uber and Urban Company.
- Investment Innovation:
- PFRDA is considering allowing pension funds to invest in commodities such as gold and silver, following recommendations from internal committees and other regulators.
- Previous investment guidelines were conservative, focusing primarily on equities, bonds, and government securities.
- Digital Integration & Distribution:
- Utilize fintech platforms for easier onboarding, especially for informal and platform workers.
- Ensure interoperability and portability within the National Pension Scheme (NPS) system.
- Focus on awareness campaigns to increase access and enrollment in underserved communities.
