ICICI NPS Swasthya Equity Plus is an experiment: PFRDA Chief

Story by ANI | Posted by Ashhar Alam | Date 21-02-2026

PFRDA Chairperson Sivasubramanian Ramann

Mumbai (Maharsahtra)

Pension Fund Regulatory and Development Authority (PFRDA) Chairperson Sivasubramanian Ramann has referred ICICI Pension Fund's Swasthya Equity Plus (SEP) as an experiment under the National Pension Scheme's regulatory sandbox.

He compared the NPS SEP with Aayushman Bharat and said that they will have to see how people express a need for the scheme.

"We are at the moment running an experiment. It is therefore directed towards a particular type of consumer. An experiment is done where you feel that there is a viable segment and therefore let us test for that segment. So we are certainly looking at the numbers that are currently given," Sivasubramanian Ramann answered ANI's question during the press conference following the launch of ICICI Pension Fund's Swasthya Equity Plus scheme in Mumbai.

Comparing the NPS SEP scheme with Aayushman Bharat, Ramann added, "Ayushman Bharat is the biggest (experiment), and I think the boldest experiment and scheme. It's no longer an experiment. It's a full-fledged scheme that is running across the country. So going into the future, how people express a need, we'll have to see that."

Apart from this, the PFRDA Chairman also underlined the purpose of the SEP scheme under NPS. He said that the core thinking or philosophy behind this was to have a pension-smart account, which can set a benchmark for the pension fund.

However, he stressed that these accounts would give hope to the holder as they would cover medical costs in parts.

He also said, "Insurance is insurance, and that is a primary mitigator of your (people's) health costs, and there is no better instrument than a medical insurance. This (NPS SEP scheme) is just a small supplement for that."

"With initiatives such as NPS Vatsalya and now this health-focused pension framework under the regulatory sandbox, we are exploring innovative ways to strengthen citizens' financial preparedness," he added.

Speaking exclusively to ANI, Sumit Mohindra, Chief Executive Officer, ICICI Pension Fund Management Limited, said that the NPS SEP scheme is offered as a Proof of Concept (PoC) under the PFRDA Regulatory Sandbox Framework.

"The minimum requirement of 50,000 is a cumulative contribution, not a one-time deposit. This amount was chosen for the POC because 25% of it (12,500) is considered a reasonable amount for emergency medical needs. This amount is subject to change based on learnings from the proof of concept stage," Mohindra said to ANI, while addressing the concern of 'missing middle'.

"There is no limit on the number of withdrawals up to the 25% limit, unlike normal NPS, which restricts withdrawals to four times in the entire tenure," he elaborated on the withdrawal norms.

In addition, Mohindra also mentioned that their NPS EPS's primary objective remains retirement planning. "Since it's a long-term plan (e.g., 15 years), allowing up to 100% equity allocation is considered appropriate," he said.

The NPS SEP is a new concept being tested under a regulatory sandbox to allow for innovation in pension products, where 70%-100% of the corpus will be invested in equity, up to 30% into debt and up to 10% in money market instruments.

Under the scheme, up to 25% of own contributions can be withdrawn for healthcare expenses -- including OPD, diagnostics, hospitalisation, and pharmacy purchases -- anytime during the tenure of the scheme through the Apollo 24*7 platform and at selected Apollo Hospitals and Apollo Pharmacy.

On an experimental basis, the pilot PoC testing has been launched physically at Bengaluru and Hyderabad, while it is available 24*7 digially from anywhere in India. Also, withdrawals are authenticated via OTP, and amounts are disbursed directly to the Apollo network via KFintech.

The withdrawals for NPS Swasthya allow unlimited withdrawals up to 25% of the corpus, whereas normal NPS limits withdrawals to four times over the entire tenure.

People willing to open their ICICI PF NPS Swasthya Equity Plus account can click the NPS Swasthya banner available on the ICICI Pension Fund's website (https://www.iciciprupension.com) or from the Apollo 24/7 mobile app. They should keep in mind that opening and maintaining a Common Scheme NPS account is mandatory alongside the NPS Swasthya account, as per PFRDA regulations.