Government to expand pension provision through ‘Pension Sakhis’ in rural India

New Delhi: The Department of Rural Development (DoRD) and the Pension Fund Regulatory and Development Authority (PFRDA) have signed a Memorandum of Understanding (MoU) to expand pension coverage and strengthen social security among rural households through a dedicated staff of Pension Sakhas.

“The partnership will leverage the community institutional network of Deendayal Antyodaya Yojana – National Rural Livelihood Mission, including Bank Correspondent (BC) Sakhi and other trained community workers, to create awareness, facilitate enrollment and provide pension support to Self Help Group (SHG) members, rural women, Lakpati Didis and other underserved groups. These cadres will provide awareness, enrollment and support in remote areas,” the company said. Ministry of Rural Development release.

Digital dashboards, mobile and web solutions, and unique identifier-based tracking through central record-keeping agencies will support monitoring of reach, enrollment and performance, the company added.

Both DoRD and PFRDA expressed confidence that the partnership will improve pension literacy, deepen financial inclusion and improve social protection for rural communities. This collaboration is expected to make a significant contribution to creating a more inclusive and sustainable social security ecosystem through greater financial security for rural residents across the country.

Rohit Kansal, secretary, Ministry of Rural Development, said SHG members have different savings patterns, livelihood cycles and risk profiles.

He emphasized that social security is an integral part of the Mission’s vision of inclusive growth, helping SHG households cope with vulnerabilities, build resilience and move towards greater and sustainable prosperity. He emphasized that pension awareness and financial literacy must be built on honesty, transparency and trust, and expressed confidence that BC’s trained sakhis and other financially literate community cadres can act as pension sakhis to expand pension coverage in rural India.

Mamta Shankar, Resident Member (Economics), PFRDA, emphasized the need for retirement planning amid rising life expectancy and changing demographic trends. She hoped that this collaboration would facilitate the adoption of pension products, including the National Pension System (NPS), among rural households with limited access to formal pension and social security mechanisms.