HomeNPS LiteNational Pension System (NPS) Lite

National Pension System (NPS) Lite

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Pension Fund Regulatory and Development Authority (PFRDA) has been established by the Government of India, Ministry of Finance vide Notification F.No.5/7/2003-ECB & PR dated 10th October, 2003 to promote old age income security.

Pension Fund Regulatory and Development Authority (PFRDA) has put in place the institutional framework and infrastructure required for administering the ‘National Pension System’ (NPS) for government employees & all citizens of India. The Unorganized sector model of the NPS, prescribes certain norms related to minimum amount of investment per contribution, during the year and no of contributions per year. The associated charge structure makes such small investments unviable. To facilitate the economically disadvantaged sections of society with limited investment potential also to take advantage of NPS, PFRDA now makes available a unique platform at ultra low cost with optimized features. The individuals would be able to join NPS as groups through “aggregators”.

NPS Lite model broadly has similar functionalities as the regular NPS model. However, some of the services would not be available at individual subscriber level; instead these services would be provided at Aggregator level and the individual can avail of those features through aggregators.

Under NPS Lite, Permanent Retirement Account would be available to subscribers. This will be non-withdrawable account, in which an NPS Lite subscriber shall contribute his/her savings for obtaining an annuity at the time of retirement.

Benefits of joining NPS Lite?

It is voluntary – NPS is open to eligible* Indian citizens. You can choose the amount you want to set aside and save every year. Investment can be as low as Rs.100 p.m.

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It is simple – all you have to do is open an account through your Aggregator and get a PRAN.

It is uniform -. Single investment plan similar to Central Govt employees.

It is portable – You can operate your account from anywhere in the country, even if you change your city, job or your Aggregator

It is safe – NPS is regulated by PFRDA, with transparent investment norms and regular monitoring and performance review of fund managers by NPS Trust.

It is affordable-NPS Lite has features optimized for low investment potential subscribers and is available at ultra low cost.

*eligibility as given in Regulations for Aggregators under NPS Lite-2010

NPS Lite Architecture


PFRDA is the prudential Regulator for the National Pension System (NPS). PFRDA was  established by the Government of India, Ministry of Finance; vide Notification  F.No.5/7/2003-ECB & PR dated 10th October, 2003 to promote old age income security by  establishing, developing and regulating pension funds, to protect the interests of  subscribers to schemes of pension funds and for matters connected therewith or incidental  thereto. PFRDA has been authorized by the Central Government Vide Notification F.No.1  (6)2007-PR dated 14th November 2008 to appoint/establish various intermediaries in the  system such as Central Record Keeping Agency (CRA), Pension Funds (PFs), Points of  Presence, Trustee Bank, NPS Trust, Custodian, etc. for operationalizing the NPS roll out to  unorganized sector subscribers.

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  1. if any person change his job e.g central government to state government the NPS no such as PRAN or PPN no or account will be same ,or new account allotted by new organization please clearify.


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