The Pension Fund Regulatory and Development Authority (Pension Fund Regulatory and Development Authority) has introduced the NPS Swasthya Pension Scheme as a Proof of Concept under its Regulatory Sandbox Framework to explore integrating health benefits with the National Pension System. Launched on a limited and controlled basis, the scheme aims to provide financial support for outpatient and inpatient medical expenses through a contributory pension model within the Multiple Scheme Framework. It will be offered voluntarily to Indian citizens and implemented by approved Pension Funds, which may collaborate with FinTechs, the Central Recordkeeping Agency, and Health Benefit Administrators or TPAs. Certain exit and withdrawal provisions have been relaxed for the PoC phase. Pension Funds must ensure system readiness and transparent disclosures on benefits, fees, claims, grievances, and exits. If the scheme’s feasibility is not established after the PoC, subscribers may transfer their corpus to the common NPS account and exit under existing regulations.
Pension Fund Regulatory and Development Authority
Circular No. PFRDA/2026/07/SUP-CRA/02 | Dated: January 27, 2026
To
All Stakeholders under NPS
Subject: Introduction of ‘NPS Swasthya Pension Scheme’ as a Proof of Concept under the Regulatory Sandbox Framework
In furtherance of its statutory mandate under the Pension Fund Regulatory and Development Authority Act, 2013 (‘PFRDA Act’) to protect the interests of subscribers and to promote the orderly development of the pension system, the Pension Fund Regulatory and Development Authority (‘PFRDA’ or ‘Authority’) continuously endeavours to encourage innovation within the National Pension System (‘NPS’) framework in a manner that is subscriber-centric, transparent and sustainable. With a view to examine the feasibility of integrating health-related benefit mechanisms with the existing NPS architecture and to assess the associated operational, technological and regulatory aspects, the Authority has decided to permit the introduction of NPS Swasthya Pension Scheme (‘Scheme’) as a Proof of Concept (‘PoC’) on a limited and controlled basis under the Regulatory Sandbox Framework, subject to the terms and conditions specified herein.
2. The NPS Swasthya Pension Scheme shall be introduced as a specific sector scheme under the NPS, intended exclusively to provide financial support for out-patient and in-patient medical expenses, within the framework of the Multiple Scheme Framework (‘MSF’). The Scheme shall be a contributory pension scheme, governed by the provisions of section 12(1)(a) and section 20 of the PFRDA Act and shall be offered to citizens of India on a voluntary basis.
3. The Scheme shall be launched by Pension Funds (‘PFs’), subject to prior approval of the Authority, strictly as a Proof of Concept, for a limited duration and shall operate in a controlled environment under the Regulatory Sandbox Framework. PFs may also collaborate with FinTechs and other such entities for carrying out such PoC. For the purpose of this PoC, provisions of PFRDA (Exits and Withdrawals under NPS) Regulations, 2015 have been relaxed under Regulatory Sandbox Framework.
4. The NPS Swasthya Pension Scheme shall operate in accordance with the terms specified in this Circular and Annexure–I. PFs shall ensure readiness of all systems, intermediaries and service providers, including the Central Recordkeeping Agency (‘CRA’) and Health Benefit Administrator (‘HBA’) / Third Party Administrator (TPA), prior to launch PFs shall disclose all material information relating to the Scheme, including but not limited to benefits, fees, claim processes, grievance resolution and exit provisions, in a clear and transparent manner. The PFs in consultation with the HBA may offer additional value-added features to the subscribers.
5. The Scheme shall initially be launched by PF as a Proof of Concept in collaboration with CRA and HBA/TPA, for a limited duration and with a restricted number of subscriber registrations. Upon completion of the PoC period, if the viability / feasibility of Scheme could not be established, the subscribers onboarded during PoC period shall be provided an option to transfer their accumulated corpus from the NPS Swasthya Pension Scheme Account to the Common Scheme Account and thereafter exercise exit in accordance with extant PFRDA (Exits and Withdrawals under the NPS) Regulations, 2015.
6. This Circular is issued in exercise of the powers conferred upon PFRDA under the provisions of the PFRDA Act, 2013.
Yours sincerely
Ashish Kumar Bharati
Chief General Manager
