The Pension Fund Regulatory and Development Authority (PFRDA) is promoting a new digital initiative called StAR NPS to expand the reach of the National Pension System across different sections of society. The platform aims to make retirement savings more accessible, particularly for people living in smaller cities, underserved communities and the informal sector.
The initiative also seeks to connect mutual fund distributors and other financial service providers with the pension system through a common digital platform.
One Platform for Mutual Funds and NPS
Developed with support from BSE Technologies Private Limited, StAR NPS allows distributors to access both mutual fund products and NPS through a common digital distribution system.
The platform is designed to simplify customer onboarding and reduce the difficulties involved in reaching potential pension subscribers.
Who Can Distribute NPS Through StAR?
The platform is open to several eligible distribution partners, including:
- Mutual fund distributors
- Primary Agricultural Credit Societies (PACS)
- Banking correspondents
- Non-banking financial companies (NBFCs)
- Other eligible individuals and organisations
This wider distribution network could help extend pension services beyond major urban centres.
Focus on Smaller Cities and Informal Workers
The initiative aims to improve access to regulated retirement savings products among people who may not have easy access to traditional financial services.
The regulator highlighted that outreach programmes have found growing interest in equity-related financial products in smaller towns. Expanding awareness about regulated pension products is therefore an important part of the initiative.
NPS Sees Stronger Enrolment Momentum
According to the regulator’s announcement, recent reforms contributed approximately 23 lakh enrolments over the preceding year. These represented nearly 23% of total non-government sector NPS enrolments since the scheme began in 2009.
Through StAR NPS, the regulator aims to strengthen pension coverage and encourage more people to plan for long-term financial security.
