PFRDA looking to allow workers registered on e-Shram portal to open pension accounts via mobile phone, says Chairman

The Pension Fund Regulatory and Development Authority is looking at technology solutions in order to allow workers from the informal sector, who are registered on the e-Shram portal to open pension accounts using their mobile phone, PFRDA Chairperson Sivasubramanian Ramann said, PTI reported.

Speaking at the Global Fintech Fest 2026 this week, Ramann said the move would be aimed at expanding pension coverage among the large informal workforce. A number of these workers do not receive regular monthly salary or pay income tax, the report added.

How will the initiative work?

According to Ramann, the PFRDA could put the Labour Ministry's e-Shram database to use and enable option to open pension accounts through simple stepwise process using mobile phones.

He said, “We also have a very large database created by the Ministry of Labour on the e-Shram database. It is a well-refined and authentic database containing many of the fields that are already required to open a pension account. We are, therefore, looking at how people, who are already registered on the database, can be enabled to open pension accounts through a simple, few-click process on their mobile phones. Once the account is opened, they can use UPI to make contributions to it.”

According to Ramann, the regulator is exploring the use of the e-Shram database to facilitate pension account opening as it already contains many of the fields required to open a pension account, enabling a simplified digital onboarding process.

Once the account is opened, subscribers will be able to make contributions using UPI. The service is also envisaged to be available in multiple Indian languages to make pension products easier to understand and access, he added.

PFRDA's tech driven initiatives: Key highlights

• Listing the PFRDA's tech-driven initiatives, Ramann added that the body has already created NPS Tatkal, which operates through UPI providers, following the government's vision of a UPI-style pension account system.
• Separately, PFRDA is working on a guaranteed-return pension product for the non-government sector, as mandated under its Act. “We have to work on a guaranteed-return scheme because there is a mandate under our Act,” Ramann said, adding that an expert committee has been constituted to examine possible products.
• The key challenge, however, is determining who would provide the guarantee for a pension product for non-government subscribers, unlike the Unified Pension Scheme (UPS) for government employees, which has a built-in guarantee mechanism.
• PFRDA is also preparing to launch NPS Swasthya, with final guidelines expected in the next few days and the product likely to be rolled out shortly thereafter.

• The product will allow subscribers to use money set aside in their pension account to pay a portion of hospitalisation expenses, while a linked top-up insurance facility would cover the remaining amount.
• Ramann said the top-up insurance could be roughly eight to ten times the initial contribution. The pilot for NPS Swasthya was conducted with two pension funds, while all pension funds should eventually be able to offer the product through tie-ups with insurance companies.
• On the investment side, Ramann said pension funds are already permitted to use equity and interest-rate derivatives for hedging their existing holdings, subject to investment guidelines.
• PFRDA is instead looking at innovative bond issuances that could help generate inflation-protected outcomes for guaranteed pension products.
• Bank of Baroda has received in-principle approval to set up a pension fund, while four new pension funds have been added to the existing 10. “We have already mentioned this. Bank of Baroda has submitted its application, and in-principle approval has been provided. They should now be in the process of setting up the pension fund. We have four new pension funds in addition to the existing ten pension funds,” Ramann added.

(With inputs from PTI)