Overview
The Pension Fund Regulatory and Development Authority (PFRDA) is evaluating a mobile-first pension account model designed to reach informal workers with easy digital onboarding. The plan would enable contributions via UPI and use the e-Shram registry to speed up account setup.
How the plan would work
- Informal workers would open pension accounts on their mobile devices without visiting a branch.
- The e-Shram database would be used to verify eligibility and create accounts efficiently.
- Contributions could be made digitally via UPI, enabling regular saving with minimal paperwork.
Potential benefits and considerations
- Expanded retirement saving coverage for the informal sector and a broader financial inclusion agenda.
- Faster onboarding and transparent contribution tracking through digital payments.
- Challenges may include digital literacy, data privacy, and ensuring widespread access to mobile networks and payment services.
