NPS Sanchay Scheme: Eligibility, Features, & How to Join

Overview

The NPS Sanchay scheme is a simplified variant of the National Pension System (NPS) from the Pension Fund Regulatory and Development Authority (PFRDA), built to expand pension coverage in India.

Key Features

Target Audience: Informal workers, gig workers, and self-employed individuals.
Eligibility: Indian citizens aged 18 to 85 with completed KYC can join.
Contributions: ₹250 to start and ₹10 afterward, with no mandatory annual minimum.
Investment Pattern: NPS Sanchay follows a predefined pattern, with stated percentages serving as investment caps, not fixed allocations. Subscribers can change their pension fund and asset allocation as per applicable PFRDA rules.
Simple & Flexible: Low entry contributions, a predefined investment pattern that eliminates initial asset allocation decisions, partial withdrawal options, and the ability to withdraw up to 80% of the corpus as a lump sum on normal exit if the corpus exceeds ₹12 lakh.
Market Risk: Returns are market-linked and not guaranteed, while at least 20% of a larger corpus must be used to purchase an annuity.

Around 87% of India’s employed workforce is informally employed, based on NITI Aayog’s analysis of Periodic Labour Force Survey (PLFS) 2023–24 data. Many such workers have irregular incomes and limited access to employer-sponsored retirement benefits.

Understanding the NPS Sanchay Scheme details, including eligibility, contributions, investment patterns, charges, and withdrawal rules, can help individuals assess whether the scheme aligns with their retirement planning needs.

In this guide, we break down how the scheme works, its key features, and how it compares with other retirement and insurance options.

What Is the NPS Sanchay Scheme?

NPS Sanchay is a simplified version of the National Pension System. It is part of the existing NPS framework, not a separate pension system. The scheme begins with a prescribed investment pattern, reducing the need for a new subscriber to build an asset allocation independently.

PFRDA’s launch circular also permits subscribers to change their pension fund and asset allocation under the applicable rules. Therefore, “predefined investment pattern” should not be read as a permanent restriction on every future investment choice.

The scheme primarily targets people with irregular incomes, including gig and platform workers, farmers, shopkeepers, artisans, daily-wage earners, and other self-employed workers.

The word Sanchay means accumulation, reflecting the scheme's focus on helping individuals gradually build a retirement corpus. If you are looking to save for a child, you can consider NPS Vatsalya, the NPS variant designed for minors.

NPS Sanchay Scheme Eligibility Criteria

To open an account, you must meet the following requirements:

Citizenship: You must be an Indian citizen.
Age: You must be between 18 and 85 years old on the date of application.
KYC: You must complete the required KYC formalities as specified in the subscriber registration form.

Registration Route: You can open an NPS account through a registered Point of Presence (PoP) or the available online NPS onboarding platform.

How to Open an NPS Sanchay Account?

You can open an NPS Sanchay account either online or offline. The online process is convenient if you want to complete the registration and KYC formalities digitally, while the offline route requires you to visit a registered Point of Presence (PoP).

Online

Follow these steps to open an NPS Sanchay account online:

1) Start Your Registration: Visit a Central Recordkeeping Agency (CRA) platform such as Protean eNPS, KFintech, or CAMS.

2) Select NPS Sanchay: Choose the All Citizen Model and select NPS Sanchay under the relevant MSF options.

3) Complete KYC: Complete the paperless e-KYC process using your Aadhaar or PAN.

4) Enter Your Details: Add your bank account and nominee details and upload your signature.

5) Make the First Contribution: Pay the initial contribution. Once the registration is processed, your Permanent Retirement Account Number (PRAN) is generated.

Offline

If you prefer to open the account offline, visit a registered Point of Presence (PoP). Fill out the subscriber registration form, submit the required KYC and bank documents, and make your first contribution. Your PRAN will be issued after your details are verified.

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Investment Pattern, Charges, and Withdrawal Rules for NPS Sanchay

The NPS Sanchay scheme simplifies retirement investing by removing the need to choose an asset allocation yourself. Here is how its investment pattern, contributions, charges, and withdrawal rules work.

Investment Pattern and Returns

NPS Sanchay follows a predefined investment pattern, so you do not have to choose your asset allocation. It follows the pattern used for government-sector schemes, including UPS/NPS for central and state government subscribers, Corporate CG, NPS Lite, and Atal Pension Yojana. PFRDA-registered pension fund managers manage your contributions.

NPS Sanchay: Maximum Permissible Asset Allocation

Asset Class	Maximum Permissible Allocation
Equity and Related Instruments (E)	25%
Corporate Bonds (C)	45%
Government Securities (G)	65%
Short-Term Debt Instruments	10%
Asset-Backed, Trust-Structured, and Miscellaneous Investments	5%

Returns are market-linked and not guaranteed. Since NPS Sanchay was launched in 2026, it does not yet have an independent long-term track record. Therefore, be cautious about relying on projected returns advertised online. The scheme is better viewed as a simple, low-cost, regulated way to build a retirement corpus over time.

Contributions and Charges

The minimum contribution is ₹250 when opening an NPS Sanchay account and ₹10 for each subsequent contribution. PFRDA's scheme description does not specify an upper limit on contribution amounts or frequency.

From January 1, 2026, the revised PoP charges include a one-time onboarding fee of ₹200, which may be reduced to ₹100 for qualifying fully digital, non-face-to-face onboarding. An annual charge of 0.20% of assets under management also applies to non-dormant accounts. Applicable GST and other taxes are additional.

Subscribers onboarded directly through eNPS who continue contributing through eNPS or D-Remit are exempt from PoP charges. However, subscribers onboarded through a PoP remain liable for the prescribed charges even if subsequent contributions are made through eNPS or D-Remit. Other charges, including those levied by the CRA, pension fund, NPS Trust, and custodian, may also apply.

Withdrawal Rules

NPS Sanchay allows limited access to your corpus before retirement, subject to specific conditions. The key withdrawal rules are:

Partial Withdrawal: You can withdraw up to 25% of your own contributions after a three-year lock-in for specified purposes, such as education, marriage, illness, or purchasing a home. You can make up to four partial withdrawals before age 60, with a 4-year interval between each withdrawal.
Normal Exit: You can exit at age 60 or after completing 15 years of subscription under the All Citizen Model, whichever is earlier.
Corpus up to ₹8 Lakh: You can withdraw the entire corpus as a lump sum.
Corpus Between ₹8 Lakh and ₹12 Lakh: You can withdraw up to ₹6 lakh as a lump sum. The remaining amount can be withdrawn through systematic withdrawals or used to purchase an annuity.
Corpus Above ₹12 Lakh: The subscriber can withdraw up to 80% of the corpus as a lump sum, while at least 20% must be used to purchase an annuity. However, the tax exemption on lump-sum withdrawal applies only to up to 60% of the total corpus. Any amount withdrawn beyond this limit may be taxable. The annuity income received as a pension is also taxable.
Death of the Subscriber: The entire accumulated corpus is paid to the nominee or legal heir.
Loan: You can pledge up to 25% of your own contributions as collateral with regulated lenders.

You can also change your pension fund, so choosing NPS Sanchay does not permanently lock you into a particular pension fund.

NPS Sanchay Tax Benefits

NPS Sanchay falls under the NPS framework, so eligible contributions can receive applicable NPS tax benefits:

Own Contributions (Section 123): Under the old tax regime, eligible contributions qualify for a deduction of up to 10% of salary for salaried individuals or 20% of gross total income for self-employed individuals, within the overall ₹1.5 lakh limit.
Additional Deduction (Section 124(3)): You can claim an additional deduction of up to ₹50,000 for eligible NPS contributions under the old tax regime.
Employer Contributions (Section 124(1) and 124(2)): Employer contributions qualify for a deduction of up to 10% of salary, or 14% under the new tax regime. The limit is 14% for Central and State Government employers.

Note: Check the tax rules applicable to the relevant financial year before claiming a deduction.

NPS Sanchay Scheme vs. Private Pension and Life Insurance Plans

Feature	NPS Sanchay	Regular NPS (All Citizens)	Atal Pension Yojana	Term Life Insurance
Built For	Informal workers seeking simplicity	Savers who want investment control	Unorganized-sector workers	Financial protection for dependents
Entry Age	18 to 85 years	18 to 85 years	18 to 40 years	Depends on the insurer and plan
Minimum to Start	₹250	₹250	Depends on the age and pension chosen	Premium depends on age, health, cover, and policy term
Later Contributions	₹10 onwards	₹10 per contribution, with a minimum of ₹1,000 per financial year	Fixed contribution based on age and pension	Premiums payable as specified in the policy
Investment Choice	Predefined pattern	Active or auto choice	None	Not primarily an investment product
Retirement Benefit	Market-linked retirement corpus	Market-linked retirement corpus	Guaranteed monthly pension of ₹1,000 to ₹5,000, subject to scheme rules	No retirement benefit under a standard term plan
Death Benefit	Governed by applicable NPS rules	Governed by applicable NPS rules	Governed by APY rules	Death benefit payable to the nominee, subject to policy terms
Life or Health Cover	No life or health insurance	No life or health insurance	No health insurance	Life cover only. Health insurance must be purchased separately

Note: NPS Sanchay and regular NPS focus on retirement savings, while APY provides a defined pension for eligible subscribers. Term insurance serves a different purpose by financially protecting dependents if the policyholder dies during the policy term. Premiums, eligibility, benefits, and conditions vary by product.

Ditto’s Insights: Retirement savings alone may not protect your family against financial emergencies. If your income supports your spouse, children, or dependent parents, consider how they would manage household expenses, outstanding loans, and future goals if you were no longer around. A term insurance plan can provide a death benefit to help meet these obligations. Health insurance can separately protect your savings from substantial medical expenses. Build your retirement corpus while ensuring your family has adequate financial protection.

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Conclusion

The NPS Sanchay scheme makes retirement planning easier for people who may find traditional pension products difficult to access or understand. With a low starting contribution of ₹250, subsequent contributions from ₹10, and a predefined investment pattern, it offers a simple way to start building a retirement corpus. However, returns are market-linked, the scheme is relatively new, and it does not provide life insurance.

If you have an irregular income and have not started saving for retirement, begin with an amount you can comfortably maintain even during a low-income month. You can increase your contributions as your income grows. Before investing, confirm the latest rules with your Point of Presence (PoP) and make sure your term and health insurance needs are covered separately.

Note: Ditto is not a SEBI- and PFRDA-registered investment or retirement advisor. We recommend speaking to one before making any investment decisions.

Frequently Asked Questions

Is the NPS Sanchay scheme a good retirement option for informal sector workers?

NPS Sanchay can be useful for informal workers who want a simple, regulated way to build a retirement corpus. It allows small contributions and does not require asset allocation decisions. However, returns are market-linked and not guaranteed, so consider it as part of a broader retirement plan.

What is the minimum contribution needed to open an NPS Sanchay account?

You can open an NPS Sanchay account with a minimum contribution of ₹250. Subsequent contributions can start at ₹10, and PFRDA does not require an annual contribution. This flexibility can make the scheme suitable for people with irregular incomes.

Do I have to choose an asset allocation when opening an NPS Sanchay account?

No. NPS Sanchay follows a predefined investment pattern, so you do not have to decide how much to allocate to equity, corporate bonds, or government securities. Your contributions are managed by PFRDA-registered pension fund managers according to the applicable pattern.

Can I switch from NPS Sanchay to another NPS scheme later?

Yes, you can switch from NPS Sanchay to common NPS schemes during the 15-year minimum lock-in period, but you cannot switch between MSF schemes during this period. After 15 years, you can switch between MSF schemes or exit, subject to normal NPS rules.

How is NPS Sanchay different from Atal Pension Yojana for gig workers?

NPS Sanchay is available for ages 18 to 85 and offers market-linked returns with a predefined investment pattern. APY is available only for ages 18 to 40 and provides a fixed pension of ₹1,000 to ₹5,000 per month at retirement. Since 1 October 2022, anyone who is or has been an income-tax payer is ineligible to join APY. This makes their eligibility and pension outcomes different.

Can a person aged 80 open an NPS Sanchay account?

Yes. An eligible Indian citizen can open an NPS Sanchay account between 18 and 85 years of age, provided they complete the required KYC formalities. For subscribers joining at age 60 or later, there is no minimum subscription period before exit. You can withdraw the entire corpus if it is ₹12 lakh or less. For a corpus above ₹12 lakh, you can withdraw up to 80% as a lump sum, while at least 20% must be used to purchase an annuity.

Do NPS Sanchay contributions qualify for tax deductions like regular NPS?

NPS Sanchay’s tax benefits may differ from those available under the regular NPS All Citizen Model. Eligibility for deductions depends on the applicable income tax provisions, the tax regime chosen, and scheme-specific rules. Check the latest PFRDA guidelines and income tax rules before claiming deductions for NPS Sanchay contributions.

What are the key benefits of NPS Sanchay compared with the regular NPS All Citizen Model?

The key benefit of NPS Sanchay over the regular NPS All Citizen Model is its flexibility for people with irregular incomes. It has no mandatory annual contribution and allows subsequent deposits as low as ₹10. Its predefined investment pattern also reduces the need for active asset allocation decisions, though returns remain market-linked and are not guaranteed.

Last updated on: 18 Oct, 2026

NPS Sanchay Scheme: Eligibility, Benefits, Returns, & Withdrawal