The Department of Rural Development (DoRD) and the Pension Fund Regulatory and Development Authority (PFRDA) have signed a Memorandum of Understanding (MoU) to link rural households with pensions and long-term financial security. Under this initiative, pension awareness, financial literacy, and enrollment will be promoted in rural areas across the country through ‘Pension Sakhis’.
Pension Sakhis to Support Rural Households
This initiative will leverage the extensive community network of the Deendayal Antyodaya Yojana-National Rural Livelihood Mission (DAY-NRLM). Banking Correspondent Sakhis and trained community resource persons will provide information about pension schemes to rural households and assist with the enrollment process.
‘Pension Sakhis’ will specifically reach out to women from self-help groups, rural women, ‘Lakhpati Didis’, and other rural citizens. The objective is to connect families—who have had limited access to financial advice and pension services—with formal retirement and social security schemes.
Digital Tools to Monitor Pension Outreach and Enrolment
Under the agreement, digital tools will be used to monitor pension awareness and enrolment. The department’s ‘LokOS’ system, along with mobile and web-based platforms, dashboards and unique ID-based tracking, will help track outreach, progress and the performance of Pension Sakhis.
Rohit Kansal, Secretary of the Rural Development Department, stated that rural households have diverse income sources and livelihood patterns; therefore, it is essential to make social security a key component of rural economic development. He also emphasized transparency and financial literacy alongside pension awareness.
Mamta Shankar, Whole-Time Member (Economics) at PFRDA, emphasized the need for retirement planning amid trends of an aging and changing population. She expressed hope that this collaboration would boost the adoption of pension products, including the National Pension System (NPS), among rural households, as these families have limited access to formal retirement and social security systems.
The MoU combines PFRDA’s pension expertise with DAY-NRLM’s extensive rural network to boost pension awareness and enrolment. It also expands the role of women’s collectives and grassroots cadres in helping rural households build long-term financial security.
(PIB)
