India’s informal sector employs close to 90% of the country’s workforce, yet most of these workers remain outside any formal retirement arrangement. On 6 May 2026, the Pension Fund Regulatory and Development Authority (PFRDA) addressed this gap by introducing NPS Sanchay, a simplified variant of the National Pension System built for people who want a pension but not a portfolio decision.
What Is NPS Sanchay?
NPS Sanchay is a simplified NPS variant introduced under the All Citizen Model and the Multiple Scheme Framework (MSF). The name is apt: sanchay means accumulation, and accumulation is precisely what the design prioritises.
The distinguishing feature is what the scheme removes. In the regulator’s own words, the default design is intended to reduce the complexities associated with selecting investment options and determining asset allocation, while also addressing constraints arising from limited advisory support at the last-mile level.
That last phrase matters. A great deal of retirement saving never begins because the first screen asks a question the saver cannot confidently answer: how much in equity, how much in corporate bonds, how much in government securities? For a daily-wage earner or small trader with no adviser to call, that is often where the process stops. The NPS Sanchay plan answers it in advance.
Two points are worth underlining. The national pension system Sanchay variant is not a separate law or a parallel regulator. It sits inside the existing NPS architecture, and established rules on exits, withdrawals and charges apply to it. Every pension fund registered with PFRDA must also make the scheme available, so subscribers are not restricted to a single provider.
Eligibility and Account Types Under NPS Sanchay
Eligibility is deliberately broad.
- Citizenship: Any citizen of India.
- Age: Between 18 and 85 years as on the date of application.
- KYC: Mandatory, as prescribed under the Subscriber Registration Form (SRF), with all requisite documents submitted.
- Route: Through a Point of Presence (PoP) or PoP-Service Provider, or through an online platform.
- Existing NPS account: Not a prerequisite.
An entry window extending to 85 reflects the reality the scheme is built around: informal-sector earnings are irregular, and the decision to start saving often arrives late rather than early.
On account types, the structure is familiar. Tier I is the primary retirement account, subject to lock-in and withdrawal rules. Tier II is an optional add-on offering easier access to funds, and cannot function independently of an active Tier I account.
How to Open an NPS Sanchay Account
The process mirrors standard NPS onboarding, with one additional selection.
Online
- Begin registration on a Central Recordkeeping Agency platform: Protean (eNPS), KFintech or CAMS.
- Select the All Citizen Model, then choose NPS Sanchay under the MSF category.
- Complete paperless e-KYC using Aadhaar or PAN, authenticated by OTP.
- Confirm personal and bank details, add nominee details, and upload your signature.
- Make the initial contribution to generate your Permanent Retirement Account Number (PRAN).
Offline
Visit a registered PoP or PoP-SP, complete the Subscriber Registration Form, submit KYC documents and bank details, and make the initial contribution. Your PRAN is generated once verification is complete.
Ready to begin? Open your NPS account online with HDFC Pension and start building your retirement corpus today.
Investment, Contributions, and Withdrawal Rules
Investment pattern
This is where the NPS Sanchay scheme departs most clearly from the standard All Citizen route. Rather than asking the subscriber to choose, the pattern is aligned with the guidelines applicable to government-sector schemes, including UPS/NPS for Central and State Governments (default), Corporate CG, NPS Lite and Atal Pension Yojana, as prescribed under PFRDA’s Master Circular dated 10 December 2025.
A note on NPS Sanchay returns: the scheme is market-linked, so returns are not guaranteed and will reflect how the underlying portfolio of government securities, corporate debt and equity performs over time. Having launched only in May 2026, it does not yet carry a track record of its own. What it carries instead is the discipline of a professionally managed, regulated investment pattern.
Contributions
The minimum contribution norms follow those of the common NPS schemes: an initial and subsequent minimum of ₹500 per transaction, and ₹1,000 per financial year for Tier I. Fall short of the annual minimum and the PRAN is frozen; it can be reactivated by paying the outstanding amount along with the applicable penalty.
Withdrawals and exit
The PFRDA (Exits and Withdrawals under NPS) Regulations, 2015 apply to NPS Sanchay in the same manner as to the rest of NPS:
- Partial withdrawal: permitted after three years, up to 25% of your own contributions, for specified purposes such as higher education, marriage, illness, home purchase or setting up a business.
- Exit at 60: at least 40% of the corpus must be used to purchase an annuity; the balance may be taken as a lump sum.
- Premature exit: at least 80% of the corpus must be annuitised, with 20% available as a lump sum.
- On death: the accumulated corpus is paid to the nominee or legal heir.
Charges follow the common NPS structure applicable to NPS (All Citizen), NPS Vatsalya and NPS Lite, one reason NPS remains among the lowest-cost regulated retirement products in India.
NPS Sanchay vs Other Retirement Schemes
| NPS Sanchay | NPS (All Citizen) | Atal Pension Yojana | |
| Investment choice | Default pattern | Active or Auto Choice | Not applicable |
| Entry age | 18–85 | As permitted under NPS | 18–40 |
| Pension outcome | Market-linked | Market-linked | Fixed slabs, ₹1,000–₹5,000 |
| Best suited to | Savers wanting a decision-light start | Savers wanting control | Those wanting a defined pension amount |
The honest summary: an NPS Sanchay investment is not a different asset class or a superior product. It is the same system with the decision friction taken out of the front door. Someone who actively wants to tilt towards equity may prefer standard NPS. Someone who has been meaning to start for three years and hasn’t may find Sanchay is the version they actually complete. The choice is not permanent either, since subscribers retain the option to change their pension fund and asset allocation under All Citizen Model rules.
Planning Your Retirement with HDFC Pension
The NPS Sanchay benefits most worth weighing are structural: a regulated low-cost framework, professional fund management, portability across jobs and locations, and tax deductions available under Sections 80CCD(1) and 80CCD(1B) of the old tax regime.
Where your provider makes a difference is in what surrounds the account. HDFC Pension manages more than ₹1.5 lakh crore in assets for over 27 lakh Indians. Under the Multiple Scheme Framework (the same framework the Sanchay variant sits within), it offers the NPS Equity Advantage Fund and the NPS Surakshit Income Fund, alongside value-added services including health benefits and Will creation.
Whether you choose the simplified NPS Sanchay pension plan or a more hands-on route, the decision that matters most is starting. Open your NPS account with HDFC Pension and be future-sure.
FAQs on NPS Sanchay
Can salaried and self-employed individuals invest in NPS Sanchay?
Yes. Although designed with informal-sector workers in mind, the scheme is open to any Indian citizen aged 18 to 85 who meets KYC requirements: salaried professionals, self-employed individuals, gig workers and small business owners alike.
Can I have both an NPS Sanchay account and a regular NPS account?
An NPS subscriber may hold up to three PRANs, one each under the three Central Recordkeeping Agencies (CAMS, Protean and KFintech). Within a single PRAN, however, you select one scheme structure at a time. Confirm the current position with your PoP before opening a second account.
Is it mandatory to open a Tier II account with NPS Sanchay?
No. Tier I is the mandatory retirement account; Tier II is entirely optional. Note that a Tier II account becomes inactive if the linked Tier I account is frozen for non-contribution.
Can I change my Pension Fund Manager after opening an NPS Sanchay account?
Yes. The circular specifically preserves your right to change both the pension fund and the asset allocation, in line with All Citizen Model rules. Opting for a default design at the start does not lock you out of choice later.
What happens to my NPS Sanchay account if I stop contributing?
If you do not meet the minimum annual Tier I contribution, your PRAN is frozen and further transactions are blocked. It can be unfrozen by paying the outstanding contributions together with the applicable penalty, after which the account resumes normally.
