SocietyPension Sakhis will take retirement enrolment and support to rural households
The Rural Development Department and PFRDA will use the DAY-NRLM women-led community network to expand pension awareness and access.
THE INDIQA Research DeskPublished 16 Sept 2026Updated 16 Sept 20261 min read
The Department of Rural Development and the Pension Fund Regulatory and Development Authority have signed an MoU to create a community-based network of 'Pension Sakhis' across rural India.
The model will use the existing DAY-NRLM network, including Banking Correspondent Sakhis and other trained community resource persons, to provide pension awareness, financial literacy, enrolment assistance and post-enrolment support closer to households.
The policy logic is last-mile trust. Financial products may exist nationally, but enrolment often depends on whether people understand them, can complete documentation and have someone nearby to resolve problems.
CIVIL SERVICES VIEWStudy this development
GS-IIGS-IIIFinancial inclusion, pensions and rural livelihoodsPrelims: HighMains: HighIntermediate
Why this matters
DoRD and PFRDA signed an MoU to create a Pension Sakhi outreach mechanism.
Key facts
- PFRDA regulates the pension sector under its statutory mandate.
- DAY-NRLM works through community institutions including women self-help groups.
Key terms
- PFRDA
- DAY-NRLM
- Pension Sakhi
- financial literacy
- social security
Background and concepts
The initiative uses trusted women-led rural networks to reduce last-mile barriers to pension enrolment and support.
Arguments, challenges and policy responses
- Last-mile financial inclusion
- Women-led community institutions
- Old-age income security
India’s context
Large informal and rural workforces make voluntary pension coverage and financial literacy especially important.
Keep in mind
Pension Sakhis are an outreach mechanism, not a new pension scheme by themselves.
Practice question
How can community institutions improve the reach of formal social-security systems in rural India?
Revision summary
- PFRDA regulates the pension sector under its statutory mandate.
- DAY-NRLM works through community institutions including women self-help groups.
- Last-mile financial inclusion
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