Summary of this article
Union Finance Minister Nirmala Sitharaman to launch PFRDA's NPS Swasthya on October 1.
The scheme combines health coverage for OPD and IPD with pension savings.
The scheme offers family floaters sum insured of up to Rs 30 lakh. Parents are explicitly excluded from the family floater coverage.
The NPS Swasthya Scheme is expected to be available to subscribers from October 1, 2026. The scheme has been in the testing phase for the last few months. At the Global Fintech Fest 2026 held earlier this month, Pension Fund Regulatory and Development Authority (PFRDA) Chairperson S Ramann announced that the scheme will formally be launched once the product guidelines are finalised.
The final guidelines for the NPS Swasthya Scheme were published on September 18, 2026, and now the product is ready for launch. It is expected to be launched by the Union Finance Minister Nirmala Sitharaman on NPS Diwas, October 1, 2026, as per sources.
The scheme will work under the National Pension System (NPS) architecture. The scheme allows subscribers to withdraw money (partial withdrawals of up to 25 per cent of their total contributions) for their healthcare expenses when required, including both outpatient department (OPD) and inpatient department (IPD), whereas the remaining corpus will continue growing as a retirement corpus. So, it is not the same as an insurance policy because if a subscriber doesn't withdraw; funds will remain invested and compound based on market returns.
NPS Swasthya Scheme
According to the guidelines issued on September 18, 2026, the scheme follows a dual structure, which means there will be an NPS Swasthya Investment Account and a separate super top-up insurance policy.
Anyone in the age bracket of 18 to 70 is eligible to enrol under the scheme. The renewal is permitted up to the age of 85, which is particularly useful for older senior citizens.
The guidelines lay down four standardised annual aggregate deductible tiers, ranging from Rs 10,000 to Rs 3 lakh. These deductibles (premiums) are tied to family floater sum insured amounts, ranging from Rs 1 lakh to Rs 30 lakh. So, for the minimum family floater sum insured of Rs 1 lakh, the deductible is Rs 10,000, and for the maximum family floater coverage of Rs 30 lakh, the deductible is Rs 3 lakh per year.
Note that the family here covers the subscribers, spouse, and up to two dependent children. Parents are specifically excluded in the scheme.
To enroll in the scheme, one needs to make an initial contribution of the first-year insurance premium, a Health Benefit Administrator (HBA) maintenance charge of Rs 200 and taxes (this is an annual fee), and a minimum of Rs 1,000 investment for the NPS Swasthya Account. The subsequent contribution can be as low as Rs 10.
The notable part is that there is no minimum waiting period and no restriction on withdrawals. Once the bill is raised, the payment will be directly settled with the healthcare providers within a few hours.
In case of no renewal by the subscribers, the insurance cover will lapse, and the account will be converted into an All Citizen Model Account.
