In a bid to modernise India’s pension framework and expand its reach, the Pension Fund Regulatory and Development Authority (PFRDA) is considering allowing exposure to commodities like gold and silver, while simultaneously targeting coverage for gig workers, Farmer Producer Organisations (FPOs), and Self-Help Groups (SHGs).
“We have been very conservative regarding investment guidelines. We have now got a request from pension funds — including from other regulators — to allow commodities to be brought within the fold of these investment guidelines,” S Ramann, chairperson Pension Fund Regulatory and Development Authority (PFRDA), said on Wednesday.
The regulator is cautiously weighing the inclusion of gold and silver within pension fund portfolios, with internal committees already evaluating the proposal. “It will be the PFRDA board which may finally take a call,” the official said while speaking at the Global Fintech Fest 2025 on the topic ‘Pension for every Indian — the next 300 million.’
Despite the move toward asset diversification, the regulator reiterated that pension funds must not mimic mutual funds. “Pension funds are intrinsically not allowing you to take your money out. We are working on the liquidity aspect… but we certainly do not want to have an indiscriminate withdrawal of funds,” the official said, stressing the long-term nature of retirement savings.
Outreach initiatives
In a significant outreach initiative, the PFRDA is encouraging pension funds to bring digital platform workers — such as those affiliated with Uber, Urban Company, and other gig platforms — under the pension net. “We got a great idea from one of the funds saying they will target platform workers… These are informal workers, not employees, and nobody has looked at their larger saving interests. We will be delighted for pension funds to take this forward,” said Ramann.
Parallel efforts are underway in the agriculture sector, where PFRDA is aiming to expand pension access through Farmer Producer Organisations, each comprising 300–500 members. The regulator is also looking at Self-Help Groups (SHGs) as a potential channel for broader pension inclusion. Framing these moves within a global context, the official warned: “No government in the world can manage if we have people at the age of 60–65 looking towards the government for a dole… It is a larger issue of economic development and the government’s fiscal resources.”
Published on October 8, 2025
