NPS Swasthya is a PFRDA pilot launched by circular dated 27 January 2026 that lets NPS subscribers set aside money inside their own account and withdraw up to 25 percent of their own contributions to pay medical bills. It is your money, not free health cover.
If you are short on time, jump to the worked example below to see exactly how much you could withdraw and when an emergency exit is allowed.
The scheme runs under the PFRDA Regulatory Sandbox Framework as a proof of concept, so the rules below apply to the pilot, not to a permanent universal scheme.
| Feature | Pilot rule |
|---|---|
| Who can join | NPS subscribers, Indian citizens, voluntary basis |
| Purpose | Fund OPD out-patient and in-patient hospitalisation costs |
| Withdrawal cap | Up to 25 percent of your OWN contributions |
| Minimum corpus to withdraw freely | Rs 50,000 accumulated |
| Number of withdrawals | No restriction once Rs 50,000 is reached |
| Waiting period | None once Rs 50,000 is reached |
| Emergency exit trigger | A single in-patient bill above 70 percent of total corpus |
| Emergency exit payout | 100 percent lump sum |
| 30 percent corpus transfer | Allowed for eligible non-government subscribers only |
NPS Swasthya is a dedicated medical-spending feature added on top of the National Pension System (NPS), the voluntary, market-linked retirement scheme regulated by PFRDA. Every NPS subscriber has a Permanent Retirement Account Number (PRAN). Tier I is the pension account and Tier II is a voluntary savings account.
The scheme does not give you an insurance policy or a government health card. It lets you tap part of your own retirement savings for medical needs without waiting for retirement. Because it is a sandbox pilot, terms can change before any wider rollout.
A regular NPS partial withdrawal has tight conditions: you usually need a minimum number of years in the system, the reason must fit a defined list, and the number of withdrawals is capped. NPS Swasthya loosens this for medical spending.
| Point | Ordinary NPS partial withdrawal | NPS Swasthya pilot |
|---|---|---|
| Reason | Limited approved list | Medical OPD and hospitalisation |
| Waiting period | Applies under normal NPS rules | None once Rs 50,000 corpus is reached |
| How many times | Capped under normal rules | No restriction in the pilot |
| Withdrawal base | Subscriber contributions, normal cap | Up to 25 percent of own contributions |
| Emergency big bill | No special route | 100 percent lump-sum exit if one in-patient bill tops 70 percent of total corpus |
Suppose Dr. Shrawan Kumar Pathak has a Swasthya corpus of Rs 4,00,000, of which his own contributions are Rs 2,40,000. He can withdraw up to 25 percent of his own contributions, that is up to Rs 60,000, to pay OPD or hospital bills, as long as he has crossed the Rs 50,000 minimum corpus. He faces no waiting period and no cap on how many times he draws.
Now suppose a single hospital admission costs Rs 3,00,000. That bill is more than 70 percent of his total corpus of Rs 4,00,000, which is Rs 2,80,000. Because one in-patient instance crosses the 70 percent line, the emergency-exit rule lets him take a 100 percent lump sum of the corpus instead of being limited to the 25 percent slice. The 25 percent cap is measured on your contributions; the 70 percent emergency line is measured on the total corpus, so do not mix the two.
The authority is the Pension Fund Regulatory and Development Authority (PFRDA), set up under the PFRDA Act. The instrument is a PFRDA circular dated 27 January 2026 that launches NPS Swasthya as a proof of concept under the PFRDA Regulatory Sandbox Framework.
A regulatory sandbox lets a regulator test a new product on a limited basis before deciding whether to make it permanent. So treat the current terms as pilot terms that PFRDA can revise.
Eligible non-government subscribers may also transfer 30 percent of their existing corpus into the Swasthya account under the pilot. Government-sector employees are currently excluded from this transfer option under the present pilot rules.
If you are a central or state government employee, check your eligibility before assuming you can move existing corpus into a Swasthya account. The pilot rules can change, so confirm the latest position with PFRDA.
NPS Swasthya is run by a public authority, so you can use the RTI Act 2005 to get documents instead of relying on second-hand summaries. You can file an RTI with PFRDA to obtain the Swasthya circular dated 27 January 2026, the full eligibility criteria, or the list of participating pension funds and sandbox entities.
You can also use RTI to ask for the status of your own grievance or the processing of a Swasthya request. If the Public Information Officer does not reply within 30 days, file a first appeal within 30 days of that deadline. Our AI RTI Drafter writes the application for you, the First Appeal Builder handles the appeal, and the Timeline Tracker counts the days so you never miss a deadline. For deeper strategy, read The RTI Playbook.
No. It is not insurance and not a free government scheme. It lets you withdraw your own NPS money for medical expenses under pilot rules. There is no third-party cover and no guaranteed payout beyond your own corpus.
PFRDA launched it through a circular dated 27 January 2026 as a proof of concept under its Regulatory Sandbox Framework. Because it is a pilot, the rules may be revised before any permanent or universal rollout.
You can withdraw up to 25 percent of your own contributions for OPD or hospitalisation costs. There is no minimum waiting period and no restriction on the number of withdrawals, provided you have accumulated a minimum corpus of Rs 50,000.
Where a single in-patient medical instance costs more than 70 percent of your total corpus, you may exit early and take a 100 percent lump sum. This 70 percent line is measured on the total corpus, not on your contributions alone.
Government-sector employees are currently excluded from the option to transfer 30 percent of existing corpus into the Swasthya account under the present pilot rules. Check your specific eligibility with PFRDA before assuming you can move existing corpus.
No. An ordinary NPS partial withdrawal has waiting periods and a cap on the number of withdrawals. NPS Swasthya removes the waiting period and the count limit for medical spending once you cross the Rs 50,000 corpus, within the 25 percent contribution cap.
File an RTI with PFRDA asking for the NPS Swasthya circular dated 27 January 2026, the eligibility criteria, and the list of participating entities. You can draft it with the PIO Reply Checker to review any reply you receive.
Raise a grievance through the PFRDA and CRA grievance system first. If you want records or a status report, file an RTI with PFRDA. If the reply is missing or evasive, escalate with a first appeal within 30 days of the reply deadline.