The Department of Rural Development (DoRD) and the Pension Fund Regulatory and Development Authority (PFRDA) signed a memorandum of understanding (MoU) on 15 September 2026 to expand pension coverage in rural India through a dedicated cadre of community workers called 'Pension Sakhis'. The initiative will harness the grassroots network of the Deendayal Antyodaya Yojana-National Rural Livelihoods Mission (DAY-NRLM) to bring formal retirement security to Self Help Group (SHG) members, rural women, Lakhpati Didis, and other underserved populations.

What the MoU Covers

Under the agreement, trained community workers — primarily Banking Correspondent (BC) Sakhis and other financially literate cadres drawn from DAY-NRLM's institutional network — will be reoriented as Pension Sakhis. Their mandate spans doorstep awareness campaigns, enrolment facilitation, and ongoing pension-related support in remote villages. Digital dashboards, mobile- and web-based platforms, and unique identifier-based tracking through Central Record-keeping Agencies (CRAs) will be used to monitor outreach, enrolment, and performance, according to the official statement.

What Officials Said

Rohit Kansal, Secretary of the Ministry of Rural Development, noted that SHG members have 'distinct savings patterns, livelihood cycles, and risk profiles,' underscoring why a one-size-fits-all approach to pension outreach has historically fallen short. He emphasised that pension awareness must be grounded in 'honesty, transparency, and trust,' and expressed confidence that trained Sakhis can serve as credible last-mile agents for social security. Mamta Shankar, Whole Time Member (Economics) at PFRDA, highlighted the urgency of retirement planning given rising life expectancy and shifting demographic trends, noting that rural households have 'limited access to formal retirement and social security mechanisms.'

Why This Matters

India's rural pension penetration remains significantly below urban levels. The National Pension System (NPS) and related products have struggled to reach informal-sector workers who lack steady incomes or awareness of long-term savings instruments. By embedding pension outreach within an already-functioning SHG ecosystem — one that covers tens of millions of rural women — the collaboration attempts to solve the last-mile distribution problem that has historically hobbled financial inclusion drives. This comes amid growing policy emphasis on social protection as a lever of inclusive growth, with the Centre increasingly looking to community-led models to deliver welfare at scale.

Expected Impact

The partnership is designed to strengthen pension literacy, deepen financial inclusion, and enhance social protection for rural communities across the country. Officials expect the Pension Sakhis model to contribute to a 'more inclusive and resilient social security ecosystem,' according to the joint statement. The scale of DAY-NRLM's network — which spans hundreds of thousands of SHGs — gives the initiative significant reach potential, though actual enrolment outcomes will depend on the quality of training and incentive structures put in place for the Sakhis.