Business EconomyPosted at: Sep 23 2026 11:36AM


PFRDA rolls out NPS Swasthya; Health insurance mandatory, healthcare withdrawals allowed without waiting period

New Delhi, Sep 23 (UNI) Pension regulator PFRDA has rolled out NPS Swasthya, allowing individuals eligible to join the National Pension System to build a dedicated retirement corpus while accessing health insurance and using part of their accumulated funds for eligible healthcare expenses, with no waiting period or limit on the number of partial withdrawals.
Under operational guidelines, Swasthya will comprise an NPS investment account and a separate super top-up health insurance policy, with the insurance cover mandatory for enrolment. The pension account and insurance policy will remain legally and operationally separate.
The Pension Fund Regulatory and Development Authority (PFRDA) said any individual eligible to join NPS can enrol in NPS Swasthya. The guidelines came into force with immediate effect.
The minimum initial contribution will have three components — the applicable first-year insurance premium including taxes, an annual Health Benefit Administrator maintenance charge of Rs 200 plus taxes, and at least Rs 1,000 for investment in the NPS Swasthya account. Subsequent contributions can be as low as Rs 10.
In a significant relaxation for medical needs, subscribers will be allowed partial withdrawals for eligible healthcare expenses, including out-patient and in-patient treatment, up to 25% of the contributions made by the subscriber to the NPS Swasthya account.
There will be no restriction on the number of such partial withdrawals and no minimum waiting period for either the first or subsequent withdrawal, the guidelines said. The withdrawn amount will not be paid directly to the subscriber but settled with the hospital, healthcare provider or other eligible entity.
The framework also provides for premature exit on medical grounds where eligible in-patient healthcare expenditure in a single instance exceeds the amount permissible through partial withdrawal. In such cases, the accumulated NPS Swasthya corpus will first be used towards the eligible hospital expenditure. Any remaining balance will be moved to an NPS scheme under the All Citizen Model.
Contributions under NPS Swasthya will be invested according to the investment pattern prescribed for the Central Government Scheme under applicable PFRDA investment guidelines, with each pension fund required to maintain a separate scheme account.
Besides charges applicable to NPS under the All Citizen Model, a pension fund may levy up to 0.08% annually of the assets under management of the NPS Swasthya corpus, plus applicable taxes, for managing the scheme. The Rs 200 annual HBA maintenance charge will also apply. PFRDA has barred recovery of any charge not permitted or approved by the regulator.
Subscribers will also be able to transfer funds from an existing NPS scheme under the All Citizen Model to their NPS Swasthya account, subject to the transfer being limited to the amount required to meet the applicable deductible under the insurance policy.
The mandatory insurance component will be a super top-up health insurance policy provided by an insurer engaged by the pension fund under a master policy arrangement. PFRDA defines super top-up insurance as supplementary cover that kicks in after aggregate medical expenses during a policy year cross the applicable deductible threshold. Insurance-related matters, including premiums, underwriting, policy issuance and claims, will remain under the regulatory framework of IRDAI.
PFRDA has put the compliance responsibility squarely on pension funds. Every pension fund offering NPS Swasthya will be responsible for ensuring regulatory compliance even where activities are carried out through a Health Benefit Administrator.
Pension funds will also have to select eligible insurers and HBAs through transparent processes and monitor their performance.
If funds are insufficient to renew the insurance policy, the pension fund should, where practicable, alert the subscriber 90, 60 and 30 days before renewal. If the premium remains unpaid after the applicable grace period and insurance cover lapses, the NPS Swasthya account will be closed and the scheme corpus transferred or converted to an NPS scheme under the All Citizen Model.
The guidelines were issued under Section 14 of the PFRDA Act, 2013, read with Regulation 4A of the PFRDA (Exits and Withdrawals under the National Pension System) Regulations, 2015.
UNI KK ATP ARN
Tags: #PFRDA rolls out NPS Swasthya; Health insurance mandatory# healthcare withdrawals allowed without waiting period
More News

Hyd: GMR Aero Technic, StandardAero partner to expand on-wing engine support in APAC

23 Sep 2026 | 2:57 PM

Hyderabad, Sept 23 (UNI) GMR Aero Technic (GAT), a leading aircraft Maintenance, Repair and Overhaul (MRO) service provider in India, and StandardAero, one of the world’s leading independent aerospace engine aftermarket and MRO providers, have signed an agreement to establish GMR Aero Technic as an authorised service centre for on-wing engine support in the Asia-Pacific (APAC) region, the companies said on Wednesday.

see more..

Banks to remain open on Sunday ahead of 3-day nationwide strike

23 Sep 2026 | 1:59 PM

New Delhi, Sep 23 (UNI) All Public Sector Banks (PSBs) and Regional Rural Banks (RRBs) will remain open and operate as usual on Sunday, September 27, 2026, as the government seeks to limit disruption to banking services ahead of a proposed three-day nationwide strike.

see more..

Booking for latest IUV Hyundai Bayon opens

23 Sep 2026 | 1:53 PM

Chennai, Sep 23 (UNI) Passenger car makers Hyundai Motor India Limited (HMIL) today announced the commencement of bookings for its upcoming Intelligent Utility Vehicle (IUV), Hyundai Bayon, a tech-enabled SUV designed for customers seeking innovation, style, advanced safety and future-ready mobility.

see more..

23 Sep 2026 | 12:52 PM

New Delhi, Sep 23 (UNI) The Asian Development Bank (ADB) has raised its growth forecast for the Indian economy for FY27 to 7 per cent, up from the 6.6 per cent estimate it made earlier, citing stronger investment activity and continued strength in services exports.

see more..

PFRDA rolls out NPS Swasthya; Health insurance mandatory, healthcare withdrawals allowed without waiting period

23 Sep 2026 | 11:36 AM

New Delhi, Sep 23 (UNI) Pension regulator PFRDA has rolled out NPS Swasthya, allowing individuals eligible to join the National Pension System to build a dedicated retirement corpus while accessing health insurance and using part of their accumulated funds for eligible healthcare expenses, with no waiting period or limit on the number of partial withdrawals.

see more..