DoRD and PFRDA Sign MoU to Expand Pension Coverage in Rural India Through 'Pension Sakhis'

The Department of Rural Development (DoRD) and the Pension Fund Regulatory and Development Authority (PFRDA) signed a Memorandum of Understanding (MoU) on 14th September 2026 to bring pension awareness and retirement security to rural households through a new community outreach model called 'Pension Sakhis'. The MoU was signed by Shri Amit Shukla, Joint Secretary, DoRD, and Ms. Sumeet Kaur Kapoor, Executive Director, PFRDA, in the presence of Secretary Shri Rohit Kansal.

The DoRD and PFRDA MoU contains

1. A community-based outreach mechanism named 'Pension Sakhis' to spread pension awareness in rural India
2. Use of the existing network built under DAY-NRLM, including Banking Correspondent (BC) Sakhis and trained community resource persons
3. Focus on financial literacy, enrolment support, and post-enrolment assistance for rural households
4. Digital monitoring of outreach and enrollment through dashboards and mobile/web tools, including the department's LoKoS system
5. Special focus on reaching SHG members, rural women, and Lakhpati Didis

Pension Sakhis Initiative

Under this initiative, Pension Sakhis will function as trusted local facilitators who help rural families, particularly women in Self-Help Groups (SHGs), understand pension products like the National Pension System (NPS). They'll guide households on enrolment, clear up doubts, and offer continued support even after enrolment. Officials pointed out that rural households often have irregular incomes tied to agriculture or informal work, making early and informed retirement planning essential for long-term financial resilience rather than just banking access.

DRDO and PFRDA’s MoU Brings Together Two Complementary Strengths

This partnership pairs PFRDA's regulatory expertise in pensions and retirement systems with DAY-NRLM's massive grassroots reach through women-led community institutions. While DAY-NRLM cadres have traditionally helped rural households access banking and livelihood opportunities, this collaboration expands their role toward building long-term financial security. Essentially, it marks a shift in India's rural financial inclusion story, moving beyond simple access to banking, toward informed participation in retirement planning and sustained financial resilience for rural communities.