Pension Fund Regulatory and Development Authority Chairman Sivasubramanian Ramann told reporters that the PFRDA’s new health-focused pension product, NPS Swasthya, is expected to launch soon, ANI reported.
Speaking to reporters on the sidelines of the Global Fintech Fest 2026 in Mumbai, Ramann said the authority is likely to formally launch within the next 30 days, with final guidelines expected to be issued in the next few days.
NPS Swasthya timeline — All we know
- Proof of concept, final guidelines
According to Ramann, the product has already been tested under a proof of concept (PoC) and received an encouraging response. “Swasthya is right now a proof of concept. We are working on it. The proof of concept worked very well. We have, let me say, a very encouraging response, and that’s what has led us to finalise the . I think in the next few days, we’ll be releasing the final guidelines for the product,” he said.
- Formal launch in October 2026
Further, he added that the Central Recordkeeping Agencies () are already working on the technology required for the product and the formal launch could take place in about 30 days (mid-October). “Hopefully in about 30 days’ time, we should be able to deliver the product and launch it formally,” he stated.
What is NPS Swasthya? Product highlights
- First introduced as PoC in the ‘s regulatory sandbox framework, NPS Swasthya tests how healthcare benefits could be integrated with the National Pension System (NPS) architecture.
- It will be released, under the , as a health-focused pension product allowing subscribers to set aside part of their retirement corpus for medical expenses, i.e. a portion of your pension savings will be set aside for healthcare need, while the remaining money continues to be invested for retirement.
- Under the latest PoC framework, the product also includes a top-up. The insurance premium is deducted from the NPS Swasthya account, while the insurance component can provide additional coverage beyond the amount available from the pension account.
- Ramann explained that under the proposed product, the payment mechanism would work directly between the pension account, insurer and hospital. “What is important in the NPS Swasthya is my ability to pay money to the hospital directly. So, from the account, money will release and go directly to the hospital. Then the health benefit administrator, through the insurance company, will provide for the top-up insurance to be released, which will go to the hospital,” he said.
- The idea, according to Ramann, is to create a dedicated pool for healthcare expenses within the pension framework. If the subscriber does not need to use the money for hospitalisation, the remains invested and can continue to grow with market returns. “Lucky if you don’t ever go to hospital, you are multiplying your money based on the market returns that anyway you are getting. So that is the double benefit that we are saying,” he said.
How will the product be available?
According to Ramann, the final product is expected to be made available through pension funds, who will tie up with companies to offer the bundled product. “The pension fund is going to be the master policyholder… the onus is on the pension fund to come up with the best bundled product,” he said.
This would allow subscribers to choose among pension funds based on the health and pension benefits offered in their respective bundled products.
(With inputs from ANI)