NPS Sanchay Scheme 2026: Eligibility, Investment Rules, Withdrawal & How to Apply

NPS Sanchay Scheme is a new pension scheme introduced under the National Pension System framework to simplify retirement investing for Indian citizens. The scheme offers a default investment structure without requiring subscribers to choose asset allocation or investment options manually.

Key Highlights

• Eligibility: Indian citizens aged between 18 and 85 years can apply
• Regulated by: The Pension Fund Regulatory and Development Authority (PFRDA)
• Minimum Contribution: ₹500 per contribution and ₹1,000 per financial year for Tier-I account
• Application modes: Available online through eNPS and KFintech platforms, and offline through PoP centres

What is NPS Sanchay?

NPS Sanchay is a pension scheme launched under the All Citizen Model and Multi Scheme Framework (MSF) of the National Pension System. The word ‘Sanchay’ means savings or accumulation.

The scheme has been introduced to simplify retirement planning for subscribers who may not have access to financial advisory services. 

• Under NPS Sanchay, subscribers are not required to select asset classes or decide allocation percentages manually since the scheme follows a default investment structure.
• The scheme mainly targets informal sector workers, gig workers, self-employed individuals, daily wage earners and small traders. However, NPS Sanchay is open to all eligible Indian citizens.
• All pension funds registered with PFRDA are allowed to offer NPS Sanchay under the Multi Scheme Framework.

Note: As per the PFRDA circular dated 6 May 2026, the default design of the scheme aims to reduce complexities associated with investment option selection and asset allocation decisions.

Who is Eligible for NPS Sanchay?

The following eligibility conditions must be fulfilled to invest in the NPS Sanchay Scheme:

The higher entry age limit of 85 years makes the NPS Sanchay Scheme more inclusive compared to many traditional retirement products.

How to Open an NPS Sanchay Account?

Indian citizens can open an NPS Sanchay account through both online and offline modes.

Online Method

I. Protean (eNPS)

Step 1: Select ‘Individual Subscriber’ and ‘Resident Indian’ on the registration page.

Step 2: Choose ‘Aadhaar’ or ‘PAN’ to begin the paperless e-KYC process.

Step 3: Select ‘All Citizen Model’ and specifically check the ‘NPS Sanchay’ option under the Multi Scheme Framework (MSF) category.

Step 4: Enter your Aadhaar number to trigger an OTP for instant retrieval of your details.

Step 5: Confirm your personal and bank details and upload a digital copy of your signature.

Step 6: Complete the initial contribution of at least ₹500 to generate your Permanent Retirement Account Number (PRAN).

II. KFintech NPS

Step 1: Select ‘Individual Subscriber’ on the registration page.

Step 2: Enter your Mobile Number, PAN, and Email ID to initiate the application.

Step 3: Select ‘NPS Sanchay’ from the scheme dropdown menu to opt for the default investment structure.

Step 4: Choose ‘Aadhaar Online KYC’ to fetch your photograph and address details automatically from the UIDAI database.

Step 5: Fill in your nominee details and provide your bank’s IFSC code for direct benefit linkage.

Step 6: Authenticate the application with an Aadhaar OTP and pay the initial investment to activate the account.

III. CAMS NPS

Step 1: Fill the required details on the registration page. Click on ‘Open NPS Account’. 

Step 2: Select the ‘All Citizen’ track. Choose the ‘Simplified NPS (Sanchay)’ track which eliminates manual asset allocation choices.

Step 3: Perform the dual OTP authentication using both your mobile number and email address.

Step 4: Use the ‘Aadhaar e-KYC’ module to verify your identity and age (between 18 and 85).

Step 5: Review the auto-filled profile and upload a cancelled cheque or bank passbook copy.

Step 6: Submit the form and make a payment of ₹500 or more to receive your digital PRAN kit instantly.

Offline Method

Step 1: Visit a registered Point of Presence (PoP) or PoP-Service Provider (PoP-SP).

Step 2: Collect and fill out the Subscriber Registration Form (SRF).

Step 3: Submit KYC documents, photograph and bank account details.

Step 4: Make the initial contribution.

Step 5: After verification, the PRAN will be generated and activated.

Investment Pattern in NPS Sanchay

The NPS Sanchay Scheme follows a default investment structure aligned with government sector investment guidelines. Subscribers are not required to manually choose asset allocation percentages or investment options under the default design.

The investment pattern is aligned with the PFRDA Master Circular dated 10 December 2025 covering:

• UPS/NPS – Central Government
• UPS/NPS – State Government
• Corporate CG Scheme
• NPS Lite
• Atal Pension Yojana (APY)
• APY Fund Scheme

Subscribers still retain flexibility to:

• Change pension fund managers
• Modify asset allocation as permitted under All Citizen Model guidelines

Under the Multi Scheme Framework (MSF), pension funds may also introduce sub-schemes with different investment patterns while keeping other terms and conditions unchanged.

Contribution Rules (Minimum Investment)

The contribution rules under NPS Sanchay follow the same structure applicable to NPS (All Citizen), NPS Vatsalya and NPS Lite schemes.

Subscribers can contribute higher amounts voluntarily depending on retirement goals and investment capacity.

If the minimum amount is not paid, the PRAN (Permanent Retirement Account Number) is frozen. To unfreeze it, the subscriber must pay the total pending minimum contributions plus a small penalty (currently ₹100 per year of default). An optional Tier-II (savings) account will automatically become inactive if the Sanchay Tier-I account is frozen due to non-contribution.

Note: PFRDA may revise contribution limits in future. Any such revision will automatically apply to the NPS Sanchay Scheme.

Charges & Fee Structure

The NPS Sanchay Scheme operates on a "Low-Cost" principle. The fees are automatically deducted from your account through the cancellation of units by the Central Recordkeeping Agency (CRA).

The charges applicable to the NPS Sanchay Scheme follow the same framework applicable to NPS (All Citizen), NPS Vatsalya and NPS Lite.

Note: The charges are regulated by PFRDA and are subject to the mode, limit and manner of collection permitted by the Authority. 

Withdrawal & Exit Rules

The withdrawal and exit rules for the NPS Sanchay Scheme are governed by the PFRDA (Exits and Withdrawals under NPS) Regulations, 2015, including future amendments. The withdrawal rules are the same as standard NPS rules.

I. Partial Withdrawal Rules

Subscribers can make partial withdrawals under specified conditions.

II. Exit Rules

A ‘Normal Exit’ occurs when the subscriber reaches 60 years of age or completes 15 years of investment (whichever is earlier).

The lump sum withdrawal allowed at maturity is currently tax-free as per applicable tax rules.

NPS Sanchay vs Regular NPS - Key Differences

Both NPS Sanchay and regular NPS are regulated by PFRDA, but the schemes differ mainly in investment flexibility and target audience.

The NPS Sanchay Scheme is designed for subscribers who prefer a simplified pension investment structure without manually selecting investment allocation.

NPS Sanchay vs APY - Who Should Choose What?

NPS Sanchay and Atal Pension Yojana (APY) are both retirement-focused schemes but differ in investment structure and pension benefits.

NPS Sanchay may be suitable for individuals seeking market-linked retirement growth and flexible contributions. APY may be more suitable for younger workers seeking guaranteed fixed pension benefits.

Tax Benefits of NPS Sanchay

Investments made under the NPS Sanchay Scheme are eligible for tax deductions under the Income Tax Act, 1961.

At maturity:

• Up to 60% lump sum withdrawal is tax-free
• Annuity income is taxable as per the applicable income tax slab

The NPS Sanchay Scheme can help investors build retirement savings while also reducing taxable income through eligible deductions. The scheme can help individuals build long-term pension savings under the National Pension System framework.

Also Read:
1. Banglar Yuva Sathi Scheme
2. Annapurna Bhandar Scheme